We Study Billionaires - The Investor’s Podcast Network

RWH049: Crushing The Market Over 50 Years w/ Jay Bowen

Sep 1, 2024

02:15:30

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William Green interviews Harold J. (‘Jay’) Bowen III, the seasoned President & CIO of Bowen, Hanes & Company, renowned for achieving remarkable investment returns over five decades. Jay shares how he transformed the Tampa Firefighters’ & Police Officers’ Pension Fund into a financial powerhouse with a staggering 81,000% cumulative return. He discusses the importance of low fees, the power of extraordinary CEOs, and why long-term investors should avoid bonds. Plus, learn how endurance sports have shaped his resilient investing approach.

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Quick takeaways

Jay Bowen emphasizes the importance of a long-term investment horizon, focusing on patience and compounding to achieve extraordinary returns.

The success of the Tampa Pension Fund is attributed to the strong, trust-based relationships built with fund trustees over decades.

Adopting a conservative investment strategy prioritizes risk management, ensuring stability and enduring returns amid market volatility.

Jay compares investing to endurance athletics, underscoring the need for mental preparation and focus to navigate challenging market environments.

Deep dives

Legacy of Long-Term Success

The podcast highlights the extraordinary legacy of Harold J. Bowen III and his father in growing a pension fund from $12 million in 1974 to $3.1 billion today, illustrating the power of long-term investing. This phenomenal growth, including $1.8 billion in payouts, underscores their exceptional annualized return of approximately 11.7% over five decades. The stock portfolio, which achieved an annualized growth rate of 14.4%, represents an incredible cumulative return of over 81,000%, emphasizing the importance of patience and compounding in wealth accumulation. The father-son team’s success story serves as an inspiring example for both amateur and professional investors alike.

Equities Over Bonds: A Long-Term Strategy

01:30

Embrace Challenges to Achieve Long-Term Goals

01:03

One Smart Decision Can Transform Wealth

01:54

Look Beyond the Headlines for True Market Trends

02:07

Intro

3min

Building Sustainable Wealth

6min

Transforming the Tampa Fund

3min

Long-Term Investment Success: Insights and Strategies

23min

Navigating the Complexities of Municipal Fund Management

4min

Investment Management: Science or Art?

15min

Rethinking Investment Strategies

13min

The Power of Strategic Investment Decisions

5min

Navigating the Fourth Industrial Revolution

20min

10.

Endurance in Investing

29min

11.

Literature's Role in Resilient Investing

10min

In this episode, William Green chats with Harold J. (“Jay”) Bowen III, President & CIO of Bowen, Hanes & Company. Jay & his late father generated dazzling returns for their biggest client, the Tampa Firefighters’ & Police Officers’ Pension Fund. The fund’s stock portfolio has achieved an annualized return of 14.4% over 50 years & a cumulative return of more than 81,000%. Here, Jay explains how they pulled this off, sharing one of the great untold stories of the investment world.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

08:37 - What makes the Tampa Firefighters’ & Police Officers’ Pension Fund special.

17:54 - How Jay Bowen’s father came to run the fund half a century ago.

29:09 - How to thrive by slashing fees, shunning consultants, & thinking long term.

38:54 - Why Jay takes a top-down thematic investment approach.

43:03 - How the fund made a fortune buying Coca-Cola before Buffett.

47:15 - Why it pays to bet on extraordinary CEOs.

51:09 - Why truly long-term investors shouldn’t bother with bonds.

1:05:31 - How Jay is positioned to profit from the Fourth Industrial Revolution.

1:10:27 - How he thinks about pricey stocks like Nvidia & Costco.

1:14:29 - How he invests in smaller companies he sees as future blue chips.

1:18:06 - Why he’s obsessed with the Federal Reserve.

1:22:16 - How to invest successfully in times of market mayhem.

1:37:58 - How being an endurance athlete has helped Jay as an investor.

1:53:58 - How he structures his days to optimize performance.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Jay Bowen’s investment firm, Bowen, Hanes & Company.
Links to Jay Bowen’s media appearances.
William Green’s podcast episode with Fred Martin | YouTube Video.
William Green’s podcast episode with Bob Robotti | YouTube Video.
William Green’s book, “Richer, Wiser, Happier” – read the reviews.
Follow William Green on X.
Check out all the books mentioned and discussed in our podcast episodes here.
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