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The Importance of Directional Right Investments
Equity Multiple makes it easy to invest in real estate. Support for this podcast comes from WISE, the account that lets you send, spend, and receive money internationally. Buffett simply wants to buy a business that he believes is trading well below his assessment of the company's intrinsic value. Investing is part art and part science in nuanced judgment is required.
On today’s episode, Clay continues his review of Gautam Baid’s book, The Joys of Compounding. Today’s episode is part 3 of our review of this incredible book.
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
02:15 - How journaling can make us better investors.
07:00 - Why incentives are at the root of all human behavior.
09:22 - How management incentives impact our long-term returns as investors in businesses.
18:15 - Why being directionally right is more important than being precise in assessing the intrinsic value of a business.
25:37 - How maintenance capex impacts the value of a business.
32:14 - Ways in which value investors fall for value traps.
32:45 - Why we as investors should respect the market’s wisdom for pricing stocks.
35:09 - The three most important words of investing.
41:25 - How high-quality businesses enhance our margin of safety.
47:55 - How one commodity investment catapulted Gautam to nearly achieving financial independence.
53:36 - Why Seth Klarman, Peter Lynch, and Joel Greenblatt consider spinoffs to be ripe hunting grounds for investors.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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