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The Efficiency of the Market and Value Traps
This chapter explores the efficiency of the market and the concept of value traps. It discusses the challenges of determining intrinsic value and the importance of investing in high-quality companies. The chapter also highlights the role of time in the success of a company and the difficulty of timing the market.
On today’s show, Stig Brodersen talks with co-host Clay Finck. They outline how and why you should invest in high-quality businesses.
IN THIS EPISODE, YOU’LL LEARN:
00:00 - Intro
01:43 - How to identify the best businesses
06:00 - Why you need to focus on barriers of entry when assessing a stock
06:44 - Why competition is for losers
18:28 - When management is important and not important in high-quality investing
23:07 - How you want the management to be compensated
24:41 - Why insider ownership is not only important but even more so how it was acquired.
57:13 - Why you should invest in stocks with two engines
1:03:01 - What is the Berkshire Summit, and how do you attend?
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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