TIP635: Deep Diving Into The Warren Buffett Way w/ Robert Hagstrom
We Study Billionaires - The Investor’s Podcast Network
Understanding the Rule of One
This chapter explores Warren Buffett's 'Rule of One,' emphasizing the relationship between retained earnings and market value. It also discusses Buffett's investment principles, including the significance of intrinsic value, consistent returns, and emotional detachment from market swings.
Kyle Grieve chats with Robert Hagstrom about reflections from Warren Buffett’s early investing mistakes, why GEICO’s insurance float has been setup so perfectly for use by Warren Buffett, why low turnover portfolio’s outperform other options, why looking at stocks as abstractions is such a powerful mental model, how Warren Buffett has made thinking long-term into his own competitive advantage, a detailed history on modern portfolio theory, and why it’s so pervasive today, why investors should focus on certainties in their investing strategy, and a whole lot more!
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
05:30 - Details on Warren's mistakes on Berkshire Hathaway (textile mill) and subsequent mistakes with the Dexter Shoe acquisition.
08:44 - Why low turnover portfolios tend to outperform.
16:20 - Why you can outperform the market over the long term while underperforming the market 50% of the time.
18:29 - The importance of thinking of stocks as abstractions.
27:55 - How Warren Buffett has evolved his investing methods while staying true to his deeply held principles.
43:07 - Benjamin Graham's two most influential concepts Warren still abides by today.
43:07 - The history of modern portfolio theory and why it's so pervasive today.
54:28 - The single most important characteristic that has produced so much of Warren Buffett's success.
59:36 - The characteristics required to outperform the market.
01:08:09 - Why we should spend our investing time thinking about business rather than macroeconomics.
And so much more!
Disclaimer: Slight discrepancies in the timestamps 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, Kyle, and the other community members.
- Buy The Warren Buffett Way here.
- Read more of Robert Hagstrom’s articles here.
- Related Episode: TIP360: Inside The Money Mind Of Warren Buffett w/ Robert Hagstrom | YouTube video.
- Related Episode: MI307: Unpacking The Money Mind w/ Robert Hagstrom | YouTube video.
- Related Episode: MI222: How To Invest Like Warren Buffett w/ Robert Hagstrom | YouTube video.
- Follow Kyle on Twitter and LinkedIn.
- Check out all the books mentioned and discussed in our podcast episodes here.
- Enjoy ad-free episodes when you subscribe to our Premium Feed.
NEW TO THE SHOW?
- Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok.
- Check out our We Study Billionaires Starter Packs.
- Browse through all our episodes (complete with transcripts) here.
- Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
- Enjoy exclusive perks from our favorite Apps and Services.
- Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
- Learn how to better start, manage, and grow your business with the best business podcasts.
SPONSORS
Support our free podcast by supporting our sponsors:
- River
- Toyota
- Range Rover
- Fundrise
- AT&T
- The Bitcoin Way
- USPS
- American Express
- Onramp
- SimpleMining
- Public
- Vacasa
- Shopify
HELP US OUT!
Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Learn more about your ad choices. Visit megaphone.fm/adchoices
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
The AI-powered Podcast Player
