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Warren Buffett's Value Investing Methods
Buffett learned how to identify businesses with above average economic potential and capable management from Phil Fisher himself. Hacksherm went on to discuss stage three of modern day value investing, which really boils down to companies with strong network effects. Network effects are the phenomenon in which a product or service increases in value for all users as more people use it. This is why Google holds 92% of the search market in 2022.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
02:54 - What it means to have a “Money Mind”.
10:08 - How Warren's father’s Libertarian viewpoints rubbed off on Warren’s business mind.
24:29 - How Buffett continued to evolve as an investor as the investment landscape changed.
29:24 - Tom Gayner’s description of the three stages of value investing that has played out over time.
36:15 - How Bill Miller helped value investors realize that value is sometimes found in the most unexpected places.
45:04 - How Buffett’s mindset differs from that of academics.
45:23 - Why Buffett views stock market volatility as an opportunity rather than the risk in a company.
50:21 - Why investors focused on the process rather than the outcome are better positioned to succeed in the long run.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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