#45 Paul Johnson and Paul D. Sonkin: The Enduring Value of Roger Murray
Investing by the Books
The Importance of Diversification in Portfolios
I think there's a lot of business risk in having a concentrated portfolio with 10 names. You know, if one blows up, you have a real problem. Even people with diversified portfolios are going to wind up around what the S&P is.
In our 45th episode, we are honored to speak to Paul Johnson and Paul D. Sonkin about their latest book “The Enduring Value of Roger Murray.” As the successor to Benjamin Graham at Columbia Business School, Murray (1911–1998) was a crucial figure in the history of value investing. Johnson and Sonkin are investment professionals and have been involved with the legendary investing program at Columbia Business School since the 1990s. The pair has also written “Pitch the Perfect Investment” and contributed to classics such as “The Most Important Thing” and “Value Investing: From Graham to Buffett and Beyond.”
Go to the episode page and make sure to follow us on Twitter, where we suggest books and do giveaways. We love to hear your thoughts so please give us a rating/review in your podcast player! Also, feel free to share great authors, books, and investors you want to hear on the show. /Eddie & Niklas with team
This episode was recorded on February 16, 2023.
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Episode Chapters
(00:00) Introduction
(03:32) How Paul & Paul started investing in stocks
(06:38) The Enduring Value of Roger Murray
(11:34) Who was Roger Murray?
(24:15) The Gap between Murray and Greenwald
(43:11) How the value investing class has changed
(46:44) Murray as an investor
(49:43) Incorporating an economic outlook in your investment process
(53:54) How to manage structural and cyclical changes
(58:05) The risk=volatility debate
(01:06:06) Does patience give you an edge?
(01:09:35) Paul Johnson’s work outside teaching
(01:14:15) Governance issues in small vs large companies
(01:17:55) How to judge a management’s allocation skills
(01:22:26) Paul Sonkin’s investment style
(01:28:20) Book discussions
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Books Mentioned
- The Enduring Value of Roger Murray - Paul Johnson & Paul D. Sonkin
- The Centennial - Columbia Business School
- Pitch the Perfect Investment - Paul Johnson & Paul D. Sonkin
- Security Analysis - Benjamin Graham
- Expectations Investing - Michael Mauboussin
- The Outsiders - William Thorndike
- Value Investing - Bruce Greenwald
- The Razor’s Edge - W. Somerset Maugham
- Of Human Bondage - W. Somerset Maugham
- The Valuation of Growth (Upcoming) - Paul Johnson & Paul D. Sonkin
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Companies Mentioned
- Apple
- Alphabet
- Meta
- Kimball International
- Capital Cities
- Berkshire Hathaway
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About the Podcast
Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books
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What is Investing by the Books?
Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis.
Visit the website: http://www.investingbythebooks.com/
Follow on Twitter: https://twitter.com/Investbythebook
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What is Redeye?
Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality.
Visit the website: https://www.redeye.se/
Follow on Twitter: https://twitter.com/Redeye_
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Disclaimer
Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se
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