Exploring Fund Structures and Their Implications

This chapter explores a novel fund structure introduced by Warren, highlighting its differences from the traditional two and twenty model. It emphasizes the misalignment of incentives between fund managers and investors, ultimately transitioning to advertisements for business efficiency products.

Transcript

chevron_right

Play full episode

chevron_right

Transcript

Episode notes

On today’s episode, Kyle Grieve discusses an underrated book called “Warren Buffett’s Ground Rules” by Jeremy Miller, he’ll discuss how to avoid being taken advantage of by Mr. Market, how to maximize the effects of compounding, how Warren thinks about tracking investment performance, how Buffett aligned himself with his partners, why contrarianism is such a good trait in investing, the challenged of scaling capital and a whole lot more!

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

04:34 - How to think about the time lag between a businesses changing fundamentals and its market price

10:30 - The story that taught Warren Buffett about the magic of compounding

15:07 - Why avoiding frictional costs is so crucial to maximizing your ability to compound your money

35:25 - The five characteristics to avoid if you want to outperform the market

36:15 - The four investing buckets that Buffett invested in

40:04 - Warren's strategies for investing in generals, merger arbitrage, and controls

41:04 - Contrasting contrarianism and conservatism in investing and how to leverage it to make better investments

55:00 - Warren's early thoughts on concentration and diversification

59:28 - The two primary reasons scaling up capital can erode investment returns

1:03:24 - The importance of sticking to your investing principles and not dropping them just because other people are succeeding in unsustainable ways

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 Warren Buffett’s Ground Rules here.
Read the Buffett Partnership Letters here.
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
Fundrise
7-Eleven
The Bitcoin Way
Onramp
Public
Vanta
ReMarkable
Connect Invest
SimpleMining
Miro
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

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

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!

Get the app

Home Top podcasts Popular guests