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The Education of a Valley Investor
Customer businesses are more susceptible to rapid change and unpredictability, whereas B2B businesses face much lower changes in consumer preferences. Godun believes that it is better to buy a good business in a great sector than a great business in a bad sector. If you want the opportunity to own a company with 10x or even 100x potential, you need to look at companies that don't have visible ceilings on their growth.
On today’s episode, Clay wraps up his review of Gautam Baid’s book, The Joys of Compounding. Today’s episode is part 5 and the final episode of our review of this incredible book. This episode is jam packed with investing wisdom that you won’t want to miss.
Gautam Baid is the Managing Partner and Fund Manager of Stellar Wealth Partners India Fund, a Delaware-based investment partnership which is available to accredited investors in the US. The fund is modeled after the Buffett Partnership fee structure and invests in listed Indian equities with a long-term, fundamental, and value-oriented approach.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro.
03:02 - Why we should read more history and study fewer forecasts.
12:05 - Why “Don’t Fight the Fed” is a misguided investment strategy.
22:15 - Why the ability to change our mind as investors is more critical now than ever before.
28:37 - What base rates are and why Buffett loves companies with high base rates.
32:32 - Gautam’s wisdom related to opportunity costs.
39:11 - How Nick Sleep, Charlie Munger, Warren Buffett have become masters of pattern recognition and better investors because of it.
56:34 - Why value investors should generally avoid stop loss orders on long-term secular winners.
62:48 - What the real secret is to utilizing the power of compounding.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
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