TIP651: Value Investing in a Growth-Obsessed Market w/ Scott Barbee
We Study Billionaires - The Investor’s Podcast Network
Navigating Contrarian Investment Strategies
This chapter explores the art of being a contrarian investor, balancing the need to diverge from popular opinion while understanding market sentiments. It also highlights the significance of a sound financial plan for Bitcoin investors and introduces the services of Sound Advisory, tailored for those engaged with Bitcoin.
On today’s episode, Kyle Grieve chats with Scott Barbee about how he managed to maintain a deep value-based strategy while it’s gone out of fashion, the three buckets of risk Scott uses to assess businesses, what a genetic contrarian is and why it can be a powerful advantage, why fossil fuels aren’t going anywhere anytime soon and why opportunities exist in that industry, how he navigated a 72% drawdown during the GFC, and a whole lot more!
Scott is the founder of the Aegis Value Fund. Which was created in 1998. Prior to Aegis, Scott worked as an analyst covering oilfield services at Simmons & Company. He also had a stint as a deep value advisor for Donald Smith & Company. He received his MBA from the Wharton School and the University of Pennsylvania. He also holds a B.S in Engineering and a B.A in Economics.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
02:41 - Some of the key lessons he learned from investing legends like Bill Ackman, Bob Robotti, Peter Cundill, and Walter Schloss
08:17 - How Scott has managed to maintain a value-based strategy when many investors have bailed to chase more expensive stocks
12:00 - Scott's three buckets of investing risk
16:10 - A breakdown of the concept of a "genetic contrarian."
17:30 - Why risk management is key to investing in businesses with high levels of uncertainty and how to take advantage of it
24:27 - Scott's views on energy and how fossil fuels are unlikely to disappear anytime soon
33:36 - The potential downsides Scott sees in super high-quality businesses
34:41 - Why lower-quality businesses with volatile earnings look very attractive right now due to a widespread de-leveraging
43:55 - How Scott dealt with a 72% drawdown during the GFC
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.
- Learn about the Aegis fund here.
- Read Scott’s Manager Letters here.
- 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:
- River
- Toyota
- Fundrise
- 7-Eleven
- The Bitcoin Way
- Onramp
- Public
- Vanta
- ReMarkable
- Connect Invest
- SimpleMining
- Miro
- Shopify
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
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
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
