TIP736: How the Best Investors Execute w/ Clay Finck
We Study Billionaires - The Investor’s Podcast Network
The Psychology of Patience in Investing
This chapter examines the impact of psychological factors, particularly boredom, on investor behavior and urges the importance of patience in maintaining long-term investments. It offers insights into successful investing strategies from top investors, emphasizing the need for discipline in executing market decisions.
In this episode, Clay reviews Lee Freeman-Shor's book — The Art of Execution. Freeman-Shor studied 45 of the world's top investors over seven years, revealing why investment success depends far more on execution than stock picking. Through analysis of nearly 1,000 investments, he discovered that even the best investors are wrong half the time, but their success comes from how they handle both winners and losers. This episode provides essential lessons on the execution strategies that determine long-term investment success.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro 06:07 - The three types of investor behaviors when facing losing positions and their outcomes. 08:37 - The psychological biases that trap investors in losing positions for years. 11:48 - Why even the world's best investors are wrong 51% of the time. 38:17 - Why selling winners early is more damaging than holding losers too long. 56:25 - How concentration beats diversification for generating superior long-term returns. 58:42 - Why execution matters more than stock picking for investment success. 01:00:36 - The five-point winner's checklist for executing investment strategies like top performers. And so much more!
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Join Clay and a select group of passionate value investors for a retreat in Big Sky, Montana. Learn more here.
- Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
- Lee Freeman-Shor’s book: The Art of Execution.
- Michael Lewis’ book: Moneyball.
- The Intrinsic Value Podcast.
- Shawn and Daniel’s episode on Reddit.
- Related Episode: TIP709: The Art of Long-Term Investing w/ Francois Rochon.
- Follow Clay on X and LinkedIn.
- Check out all the books mentioned and discussed in our podcast episodes here.
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