Investing in Quality: The Debate Between Trend Following and Value Investing

This chapter explores the distinctions between investing in trending stocks and undervalued businesses. The speakers share personal insights on notable stock cases, emphasizing long-term thinking and the significance of quality shareholders in achieving stable investments.

Transcript

chevron_right

Play full episode

chevron_right

Transcript

Episode notes

On today’s episode, Clay and Kyle dive into Robert Hagstrom’s book — Investing: The Last Liberal Art. Charlie Munger is famous for popularizing the use of mental models and pulling key ideas from related fields and implementing them to the world of investing. In today’s episode, that’s exactly what we do, starting with the fields of physics, biology, sociology, and psychology.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

01:27 - How learning new mental models can help us be better investors.

10:49 - Concepts in physics that we can carry over to investing.

25:35 - Lessons we can learn from evolution and complex adaptive systems.

42:00 - What leads to a stock oscillating above and below the intrinsic value.

54:15 - The primary psychological biases as lead to investment mistakes.

01:05:43 - Why Lumine’s incentive structure is a structure worth studying.

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 Investing: The Last Liberal Art here.
Read Seeking Winners blog here.
Buy What I Learned about Investing from Darwin here.
Buy The Uncertainty Solution here.
Learn more about Charlie Munger’s speech here.
Learn more about Mental Models here.
Read Li Lu’s write-up on value investing in China here.
Buy Poor Charlie’s Almanck here.
Follow Clay on Twitter and LinkedIn.
Follow Kyle on Twitter and LinkedIn.
Check out all the books mentioned and discussed in our podcast episodes here.
Enjoy ad-free episodes when you subscribe to our Premium Feed.

NEW TO THE SHOW?

Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok.
Check out our We Study Billionaires Starter Packs.
Browse through all our episodes (complete with transcripts) here.
Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
Enjoy exclusive perks from our favorite Apps and Services.
Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
Learn how to better start, manage, and grow your business with the best business podcasts.

SPONSORS

Support our free podcast by supporting our sponsors:

SimpleMining
Hardblock
AnchorWatch
DeleteMe
CFI Education
Vanta
Indeed
Shopify
Vanta
The Bitcoin Way

Onramp

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Learn more about your ad choices. Visit megaphone.fm/adchoices

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!

Get the app

Home Top podcasts Popular guests