TIP621: Warren Buffett’s Wisdom: The Power Of Corporate Governance with Lawrence Cunningham
We Study Billionaires - The Investor’s Podcast Network
Navigating Value Investing in 2024
This chapter explores the isolation faced by value investors in 2024 and presents the TIP Mastermind community as a supportive network. It discusses innovative tools like Maka for market research and critiques investment professionals, highlighting Warren Buffett's stance on their costs versus value.
Kyle Grieve chats with Lawrence Cunningham about Lawrence’s fascination with Warren Buffett and Berkshire Hathaway, why corporate governance is so crucial for shareholders to understand, the power of transparency, accountability, and ethical decision-making, how Warren Buffett created his shareholder letters to create a competitive advantage, a list of some incredible businesses to research to understand best top-notch corporate governance, the makeup of a successful incentive program and a whole lot more!
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
02:02 - How corporate governance protects shareholders.
06:53 - Why Warren Buffett has created a competitive advantage by writing his shareholder letters the way he does.
09:54 - A few businesses that have excellent corporate governance that investors should research.
13:35 - Lessons from Charlie Munger and Philip Fisher that helped Warren better understand quality.
29:39 - How Warren's alignment with shareholders is such a competitive advantage.
30:07 - Why Berkshire is such an attractive buyer compared to alternatives.
33:04 - A breakdown of some simple and complicated investments Warren has made using the 1-foot and 7-foot hurdle analogy.
40:41 - The ABCs of capital allocation and why all board members should understand them deeply.
46:27 - How Warren tracks intrinsic value for different business models and why you should utilize multiple tools.
56:32 - Why it's so hard for most companies to have shareholder-friendly incentive programs.
And so much more!
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
- Buy The Essays Of Warren Buffett: Lessons For Corporate America here.
- Buy Dear Shareholder: The best executive letters from Warren Buffett, Prem Watsa and other great CEOs here.
- Check out Lawrence’s other books here.
- Related Episode: MI305: Exploring The DNA of Quality Businesses w/ Lawrence Cunningham | YouTube Video.
- Related Episode: TIP330: Warren Buffett w/ Lawrence Cunningham | YouTube Video.
- Learn more about the Berkshire Summit by clicking here or emailing Clay at clay@theinvestorspodcast.com.
- Follow Kyle on Twitter and LinkedIn.
- Check out all the books mentioned and discussed in our podcast episodes here.
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