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Investing Insights: Track Records and Risk Management
This chapter explores the intricacies of investing, focusing on track records and risk management in portfolio construction. It examines the importance of separating investment processes from outcomes while highlighting the varying perspectives on asset classes like gold and cryptocurrencies.
In this episode, Stig Brodersen talks with Guy Spier about how he has achieved his impressive track record and whether you can adjust a track record for luck. Since 1997, Guy Spier’s fund has performed 9.3% vs. 8.7% annually for the S&P500.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
02:05 - What we can learn from royal families about moats in business.
26:43 - How Guy Spier’s track record would look if we adjusted to luck.
40:20 - If Guy would ever stop managing money.
49:49 - How to think about risk in your portfolio.
52:31 - Why it’s risky not to take risks.
56:40 - Why Guy wants to be truthful and honest and not present himself in the best possible light.
1:14:31 - How to think about position sizing.
1:21:53 - What is VALUEx?
1:37:23 - How Guy feels about being famous in the value investing community.
1:55:46 - How to live a life with givers, matchers, and takers.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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