We Study Billionaires - The Investor’s Podcast Network TIP736: How the Best Investors Execute w/ Clay Finck
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Jul 11, 2025 Clay Finck dives into Lee Freeman-Shor's insights on investment execution versus stock picking. It reveals that even top investors are wrong over half the time but thrive by managing wins and losses effectively. The discussion includes the dangers of emotional biases, the psychology of patience, and the importance of keeping high-conviction stocks. A five-point checklist for executing strategies like the best in the business is also shared, emphasizing that successful investing relies more on execution than mere ideas.
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Top Investors Are Often Wrong
- Freeman Shore found top investors only made money 49% of the time on their best ideas.
- Even celebrated investors were sometimes only right 30% of the time, revealing investing success is about execution.
Vibe Communications 99% Loss
- One investor bought Vibe Communications near its peak and lost 99% over two and a half years before selling.
- Clay Finck personally relates, having lost 99% in his first investment at 18.
Plan for Losing Stocks
- Have a clear plan on what to do if a stock falls by 20% or 50%.
- Sell if you wouldn’t buy the stock today given current knowledge, acknowledging the endowment bias.
