Investment Philosophy and Strategic Decisions | 27min snip from We Study Billionaires

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RWH013: Move Slow, Win Big W/ Thomas Russo

We Study Billionaires - The Investor’s Podcast Network

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CHAPTER

Investment Philosophy and Strategic Decisions

This chapter focuses on the importance of a disciplined investment philosophy centered on undervalued assets and strong brand identities. It discusses the necessity of timely divestment from underperforming investments, illustrated through examples like Juul and Wells Fargo, while examining broader market risks. Additionally, the chapter highlights successful long-term strategies in consumer brands and the potential growth in emerging markets like India and Africa.

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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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