The Power of Humility in Investing

This chapter explores the critical importance of maintaining an open feedback loop in investment valuation by engaging with diverse perspectives. It highlights the necessity of humility in investing, warning against overconfidence and the common mistakes investors make, particularly regarding portfolio concentration. Through personal anecdotes and discussions of influential investors, the chapter underscores the value of discipline and transparency in investment strategies.

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IN THIS EPISODE, YOU’LL LEARN

00:09:21 - Why it’s so valuable to build unscheduled “day-dreaming time” into your day.
00:13:17 - Why it’s a competitive advantage to be a generalist in a world of specialists.
00:18:29 - What 42 years as a professor have taught Aswath about how to communicate.
00:31:14 - Why he’s intensely skeptical about the ESG movement.
00:39:46 - Why he owns no cryptocurrencies and views Bitcoin as a currency “for the paranoid.”
00:44:21 - Which investment principles guide him.
00:46:20 - How to identify the investment philosophy that fits best for you.
00:52:07 - Why he’s glad that he sold Amazon and Tesla, and how he hit the jackpot with Apple.
00:54:49 - How he values businesses by focusing on three key drivers above all else.
01:19:58 - Which investors he admires the most.
01:23:20 - Why he believes that macroeconomic forecasting makes soothsayers look good.
01:25:06 - How he maintains his serenity in difficult times, both in markets and life.
01:27:07 - Why it’s so important to spread your bets and not concentrate too aggressively.
01:33:30 - How “small, right” actions can have a massive impact on you and others.

*Disclaimer: Slight timestamp discrepancies 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, and the other community members.
Aswath Damodaran’s YouTube channel, featuring his free videos on valuation.
Aswath Damodaran’s website, Damodaran Online, which includes his blog.
Aswath Damodaran’s Google Talk, which has been viewed over 1.1 million times.
Aswath Damodaran’s books, including “Narrative and Numbers”.
William Green’s book, “Richer, Wiser, Happier” – read the reviews of this book.
William Green interviews Jason Zweig on RWH004: Intelligent Investing.
William Green interviews Joel Greenblatt on RWH003: How to Win The Investing Game.
William Green interviews Howard Marks on RWH002: Investing Wisely In An Uncertain World.
William Green interviews Tony Robbins on RWH001: The Life Force Revolution.
William Green interviews Ray Dalio on WSB410: The Changing World Order.
William Green’s Twitter.

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