Balancing Individual Stock Selection with a 'Weird' Portfolio

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The chapter explores the speaker's strategy of dividing their portfolio between selecting individual stocks and a systematic 'weird' portfolio. It discusses the tax benefits of ETFs for stock picking and the satisfaction derived from researching and investing in specific companies, contrasting it with a more mechanical approach for risk mitigation. Additionally, it analyzes a unique investment portfolio comprising diverse asset classes based on historical performance in various economic scenarios and critiques the investment strategies of notable investors like Harry Brown and Ray Dalio.

In this week’s episode, Patrick Donley (@JPatrickDonley) sits down with Value Stock Geek to chat about his journey into value investing, how he’s developed his unique investing philosophy, and who his biggest influences have been in the value community. They also talk about how VSG worked his way out of debt, how he got into the FIRE movement, what the “weird portfolio” is, and what he would tell a younger investor just getting started.

Value Stock Geek is an anonymous blogger who has been blogging & tweeting about his portfolio and value investing concepts since 2016. He operates a Substack where he investigates new companies every week and posts updates on his personal portfolio, where he buys and sells these companies. He has also written up a unique approach to asset allocation, which they discuss in the interview.

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

02:05 - How VSG got interested in value investing and what his biggest influences were.

05:46 - How the dot com bubble affected him.

06:37 - How he worked his way out of debt after falling into some typical consumer traps.

09:11 - When and how he got interested in the FIRE movement.

15:16 - What value investors have influenced his current approach to stock selection.

17:52 - How VSG has learned to think about moats.

23:10 - What the “weird portfolio” is.

33:59 - Why he writes weekly research reports.

39:33 - How to use Dataroma to clone great investors.

47:35 - What he’s learned from some of the guests on his podcast.

49:58 - What his favorite money and investing movies are.

52:16 - What his favorite stock is right now.

54:22 - What he would tell a younger investor on how to get started investing.

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

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Recommended Book: The Intelligent Investor by Benjamin Graham.
Recommended Book: The Snowball by Alice Schroeder.
Recommended Book: Early Retirement Extreme by Jacob Lund Fisker.
Recommended Book: Deep Value by Tobias Carlisle.
Recommended Book: The Little Book that Beats the Market by Joel Greenblatt.
Recommended Book: The Little Book That Builds Wealth by Pat Dorsey.
Recommended Book: Money by Tony Robbins.
Recommended Book: Principles by Ray Dalio.
Recommended Book: The Simple Path to Wealth by JL Collins.
Recommended Book: Tapdancing to Work by Carol Loomis.
Check out: Dataroma.
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Check out the books mentioned in the podcast here.

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