Lessons from Bill Miller: Analyzing Balance Sheets and Contrarian Investing

Cole Smead is a portfolio manager at Smead Capital Management, an investment advisor applying a differentiated value approach to its capital allocation processes. Cole is an avid reader and hosts the podcast “A Book With Legs.” In this episode, we discuss the classic title “Money Masters” by John Train. We talk about whether there is such a thing as a money mind, if good investors tend to be born poor, and explore the insight that businesses are always dying.

For more info about the podcast, go to the episode page and make sure to follow us on Twitter. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You’re also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team

This episode was recorded on May 17, 2023.

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Episode Chapters

(00:00) Introduction with Henrik Andersson

(02:58) Welcoming Cole

(06:52) Do some people have a “money mind”?

(10:14) Are good investors born poor?

(12:58) Money Masters by John Train

(19:08) The chapter on T. Rowe Price

(23:35) How to avoid falling for herd behavior

(28:59) Businesses are always dying

(32:52) Further lessons from T. Rowe Price

(41:04) Identifying yourself with your investments

(46:05) Why did Cole end up in the investment business?

(50:34) Cole’s idols in investing

(57:01) Applying lessons from marketing

(01:02:11) The step-by-step approach to learning about a new industry

(01:11:16) The most interesting aspects of today’s markets

(01:14:45) Cole’s reading habits

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Books Mentioned

• Money Masters - John Train
• Investing the Templeton Way - Lauren Templeton
• The Go-Go Years - John Brooks
• Richer Wiser Happier - William Green
• Once in Golconda - John Brooks
• Building a StoryBrand - Donald Miller
• The Frackers - Gregory Zuckerman
• Easy Money - Ben McKenzie
• The War That Made the Roman Empire - Barry S. Strauss
• Cloud Money - Brett Scott
• For Whom the Bell Tolls - Ernest Hemingway

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Companies Mentioned

• Coca Cola
• Simplicity Patterns
• Wells Green
• Target
• Berkshire Hathaway
• Occidental Petroleum

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More on Cole

A Book With Legs

Missives from Smead Capital Management

Twitter

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About the Podcast

Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books

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What is Investing by the Books?

Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis.

Visit the website: http://www.investingbythebooks.com/

Follow on Twitter: https://twitter.com/Investbythebook

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What is Redeye?

Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality.

Visit the website: https://www.redeye.se/

Follow on Twitter: https://twitter.com/Redeye_

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Disclaimer

Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se