TIP661: Lessons from Bear Markets w/ Richard Lawrence
We Study Billionaires - The Investor’s Podcast Network
Masterclass in Value Investing and Market Navigation
This chapter explores insights from a book on value investing and business strategies shaped by experiences during the Asian financial crisis. It concludes with a celebration of the podcast's 10-year anniversary and special sales on educational resources for investors.
On today’s episode, Clay is joined by Richard Lawrence. Richard is the Founder and Executive Chairman of Overlook Investments, a leading value-oriented investment firm in Asia that he founded in 1991.
Over a 30-year time period, Overlook compounded capital at 14.3% per year — a remarkable record of growth that is a testament to their consistent ability to find and invest in Asia’s best companies.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
01:53 - Why the 1980s was the most transformative period in Asia’s history.
04:03 - Key lessons that Richard learned from his father, who owned an investment firm in New York.
07:10 - Why Richard prefers to invest in the most simple businesses.
12:23 - What Richard learned from having his apartment ransacked after publicly calling out a management team his firm invested in.
13:17 - What was happening during the Asian financial crisis that made it an economic nightmare for businesses all throughout Asia?
22:33 - Why Richard regrets ever listening to Buffett’s advice on ignoring the broader macro environment when investing in great companies.
23:51 - How Richard helped Taiwan Semiconductor improve their capital allocation decisions.
38:55 - Why Richard generally prefers dividends over share buybacks.
42:24 - What led Richard to recommend TSMC’s stock to Warren Buffett?
44:33 - Why Overlook has started to bet big on China.
50:49 - Richard’s view on the current macro situation in China.
58:55 - The biggest misconceptions that US investors have with respect to China.
01:00:35 - How Jeremy Grantham influenced Richard to be more mindful about the environmental risks that lie ahead
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.
- Richard’s fund: Overlook Investments.
- Richard’s book: The Model.
- Book mentioned: The Economics of Climate Change.
- John Holdren’s annual presentation on climate change.
- Related Episode: Listen to WSB647: Value Investing Masterclass w/ Soo Chuen Tan, or watch the video.
- Follow Clay on Twitter.
- Check out all the books mentioned and discussed in our podcast episodes here.
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