We Study Billionaires - The Investor’s Podcast Network

TIP546: The Holy Grail of Long-Term Value Investing

Apr 21, 2023

55:19

Highlights

AI Chapters

Episode notes

Defining a Sustainable Competitive Advantage and its Importance in Investing

01:26

The Kelly Formula and Investing Strategies

01:18

The Importance of Concentration in Portfolio Management

01:19

Introduction

5min

The Joys of Compounding

3min

The Importance of Durable Competitive Advantage in Investing

5min

The Importance of Quality in Investment Decisions

3min

The Benefits of Investing in Great Companies

3min

AlphaSense: The AI Platform Behind the World's Biggest Decisions

5min

The Efficiency of Markets

4min

The Effect of Liquidity on Stock Prices

4min

How to Make Money in Stocks

2min

10.

The Dynamic Art of Portfolio Management

3min

11.

The Babe Ruth Effect

6min

12.

The Kelly Formula to Determine the Best Bet Size for a Given Set of Probabilities and Payoffs

4min

13.

The Importance of a Sound Investment Process

2min

14.

The Importance of Avoiding Ruin

2min

15.

The Risk of Leverage

2min

16.

The Importance of Diversification in Life

4min

17.

Buffett and Gautam on Staying Power

4min

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.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Check out the book, The Joys of Compounding.
Tune into our previous episodes covering The Joys of Compounding: Part 1, Part 2 & Part 3. Watch the videos here, here and here.
Check out our recent episode covering Mark Leonard’s Letter’s and Constellation Software. Watch the video here.
Check out Clay’s YouTube video calculating the intrinsic value of Constellation Software here.
Follow Clay on Twitter.

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