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The Efficiency of Markets
Benjamin Graham says we shouldn't be affected by the markets mood swings that are irrational at times. The largest and most widely known companies still see their values shift dramatically during some years. As investors who are able to remain calm during the chaos, these investors can find opportunities to buy great companies at a discount.
On today’s episode, Clay Finck continues his review of Gautam Baid’s book, The Joys of Compounding. Today’s episode is part 4 of our review of this incredible book.
Gautam Baid is the Managing Partner and Fund Manager of Stellar Wealth Partners India Fund, a Delaware-based investment partnership which is available to accredited investors in the US. The fund is modeled after the Buffett Partnership fee structure and invests in listed Indian equities with a long-term, fundamental, and value-oriented approach.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro.
05:51 - What the holy grail of long-term value investing is.
07:55 - Why Gautam prefers to invest in high quality businesses.
10:26 - Why a company’s longevity of growth is much more important than its rate of growth.
15:44 - Why Gautam is bullish on India.
37:26 - Ways in which we can capitalize on inefficiencies in the markets.
45:38 - How Gautam thinks about portfolio management and position sizing.
54:20 - Why it’s so important we emphasize the preservation of our capital and avoiding ruin.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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