RWH013: Move Slow, Win Big W/ Thomas Russo
We Study Billionaires - The Investor’s Podcast Network
Navigating Profitability and Long-Term Growth
This chapter explores the tension between long-term investment strategies and the demands for short-term profitability from shareholders. It highlights how public companies navigate these pressures differently than family-controlled businesses, affecting their strategic decisions.
IN THIS EPISODE, YOU’LL LEARN:
- 02:17 - What Tom Russo learned from a life-changing encounter with Warren Buffett in 1982.
- 09:53 - Why “agency” cost is one of the greatest risks facing all investors.
- 14:02 - Why Tom favors companies that willingly endure pain today for gain tomorrow.
- 16:02 - How he rode Berkshire Hathaway from $900 to more than $430,000 per share.
- 21:08 - Why Buffett’s team of successors should do fine when Berkshire is in their hands.
- 27:17 - What Tom learned while working for investment legend Bill Ruane.
- 38:16 - Why Tom immediately sold Wells Fargo & Altria after realizing they’d lost their way.
- 48:46 - Why Tom loves brands where consumers believe there’s “no adequate substitute.”
- 53:39 - Why Tom is bullish about Heineken’s long-term future, even after owning it for 36 years.
- 01:07:08 - How Tom succeeds by resisting short-term temptations & deferring gratification.
- 01:16:09 - What Tom failed to understand about Alibaba & the political risks of investing in China.
- 01:23:11 - How Tom thinks about moral questions like whether it’s okay to own tobacco stocks.
- 01:25:51 - How innovators like Nestlé & Heineken are helping to combat climate change.
- 01:35:13 - How Tom’s investment success is fueled by his insatiable curiosity.
- 01:37:41 - What Tom learned from Charlie Munger about the importance of trusting your gut.
*Disclaimer: Slight timestamp discrepancies 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, and the other community members.
- Thomas Russo’s 2018 Google Talk on “Global Value Investing.”
- Warren Buffett discusses Bill Ruane, who ran the Sequoia Fund & helped train Tom Russo.
- William Green’s book, “Richer, Wiser, Happier” – read the reviews of this book.
- William Green’s Twitter.
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