We Study Billionaires - The Investor’s Podcast Network

TIP718: Buffett & Munger Unscripted by Alex Morris

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May 2, 2025

Dive into the timeless wisdom of Buffett and Munger! Discover why they believe all investments hold value and their disdain for complex models. Learn the traits that define great businesses and the art of capital allocation. Explore how temperament outweighs intelligence in investing decisions. Delve into their thoughts on share buybacks versus dividends and understand why quality management is crucial. Plus, hear how critical choices drove Berkshire's success and the role of index funds in your investment journey!

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INSIGHT

Value Investing Is Common Sense

Buffett and Munger see all investments as value investments because value means getting more than what you pay for.
They avoid complex financial models, relying instead on common sense and understanding of the business.

ADVICE

Invest Within Your Circle

Only invest in businesses you can truly understand and whose economics you believe are good and stable.
Avoid chasing hot trends or businesses outside your circle of competence to prevent speculation.

INSIGHT

Characteristics of Great Businesses

Great businesses earn high returns on capital and can reinvest capital at those rates consistently, creating compounding.
Such businesses are rare and often risky, leading Buffett to invest in some companies with limited reinvestment opportunities.

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The Wealth of Nations

Adam Smith

Published in 1776, 'The Wealth of Nations' is Adam Smith's magnum opus that laid the groundwork for modern economics. The book critiques mercantilist economic theories and introduces the concept of the 'invisible hand,' which describes how individual self-interest leads to societal benefit. It emphasizes the division of labor, the accumulation of capital, and the importance of free markets. Smith argues that a nation's wealth is not measured by its gold and silver reserves but by the stream of goods and services it produces. The book also outlines the core functions of government, such as maintaining defense, enforcing civil law, and promoting education, while advocating for limited government intervention in market activities.

Influence

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In this highly acclaimed book, Dr. Robert B. Cialdini explains the psychology behind why people say yes and how to apply these insights ethically. The book outlines six universal principles of influence: Reciprocation, Commitment and Consistency, Social Proof, Liking, Authority, and Scarcity. The new and expanded edition includes a seventh principle, Unity, along with new research, insights, and examples. Cialdini uses memorable stories and relatable examples to make the subject accessible and easy to understand, helping readers become more skilled persuaders and defend themselves against unethical influence attempts.

The General Theory of Employment, Interest and Money

John Maynard Keynes

Published in February 1936, 'The General Theory of Employment, Interest and Money' by John Maynard Keynes revolutionized economic thought by challenging the classical economic theories of his time. Keynes argued that total spending in an economy can fail to generate full employment if total savings exceed total investment. He introduced key concepts such as the 'Principle of Effective Demand,' liquidity preference, and the marginal efficiency of capital. The book emphasizes the importance of aggregate demand, the role of government in stabilizing the economy, and the interaction between monetary and real economic factors. Keynes's theories have had a profound impact on economic policy and continue to influence macroeconomic thought and policy to this day.

The selfish gene

Lalla Ward Richard Dawkins

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The Blind Watchmaker

Richard Dawkins

In *The Blind Watchmaker*, Richard Dawkins presents a comprehensive explanation of the theory of evolution through natural selection. He argues against the creationist metaphor of the skilled watchmaker by introducing the concept of a 'blind watchmaker,' where natural selection acts without foresight or purpose. Dawkins uses examples such as the evolution of the eye and computer simulations to illustrate how complexity can arise from simple organisms through cumulative selection. The book also addresses common criticisms of evolution and argues against the existence of a divine creator, emphasizing that the Darwinian world-view is the only known theory that could explain the mystery of our existence[1][2][4].

The intelligent investor

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Benjamin Graham

Written by Benjamin Graham, 'The Intelligent Investor' is a seminal work on value investing that has inspired millions since its original publication in 1949. The book emphasizes the importance of distinguishing between investing and speculation, calculating the intrinsic value of companies, and maintaining a margin of safety. The revised edition includes updated commentary by Jason Zweig, who provides modern examples and insights to help readers apply Graham's principles in today's market. Warren Buffett, a disciple of Graham, has praised the book as 'the best book about investing ever written'.

Guns, germs, and steel

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Fabián Chueca

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(MEI )DAI MENG DE (Diamond J. ) XIE YAN GUANG YI

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Buffett and Munger Unscripted

Three Decades of Investment and Business Insights from the Berkshire Hathaway Annual Shareholder Meetings

Alex Morris

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The New Money Masters

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