We Study Billionaires - The Investor’s Podcast Network

RWH056: Calm Amid The Storm w/ Christopher Begg

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Apr 20, 2025

In this engaging discussion, Christopher Begg, CEO & CIO of East Coast Asset Management and esteemed Columbia Business School instructor, shares his insights on navigating market volatility. He advocates for leveraging volatility as an opportunity while emphasizing the importance of temperament in investment success. Begg also highlights the potential of Tesla for extraordinary returns and introduces 'Value 3.0' in investing. Additionally, he reveals how the Piper 66 Challenge nurtures positive habits and stresses the importance of a balanced life across various domains.

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ADVICE

Volatility is an Investor's Friend

Embrace market volatility as an opportunity rather than a risk.
Use price drops during turmoil to acquire great businesses at attractive returns.

ADVICE

Temperament is Key

Develop a temperament suited for long-term investing to thrive during market drawdowns.
Use discomfort and uncertainty as a buying signal for greatness.

INSIGHT

Buying Through Market Clouds

Exceptional businesses have widening moats, secular tailwinds, and strong capital allocation.
Market 'clouds' create rare opportunities to buy these businesses at discounts.

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How God Becomes Real

null

Tanya Marie Luhrmann

The Hitchhiker's Guide to The Galaxy

Douglas Adams

The book follows Arthur Dent, an ordinary Englishman, whose house and planet are about to be demolished. He is rescued by his friend Ford Prefect, an alien researcher for the 'Hitchhiker's Guide to the Galaxy'. Together, they embark on a journey through space, encountering various characters such as Zaphod Beeblebrox, the two-headed, three-armed president of the galaxy, Trillian, a human woman, and Marvin, a paranoid android. The story involves their adventures on the spaceship Heart of Gold, which has an Infinite Improbability Drive, and their quest to understand the ultimate question of life, the universe, and everything, which is revealed to be '42'. The novel is known for its humor, satire, and imaginative storytelling.

Finite and infinite games

James P. Carse

In this book, James P. Carse distinguishes between finite and infinite games. Finite games are instrumental activities with clear rules, boundaries, and winners, such as sports, politics, and wars. Infinite games, on the other hand, are authentic interactions that aim to continue the play, changing rules and boundaries as needed. Carse explores how these concepts apply to various aspects of life, including culture, religion, sexuality, and self-discovery. He argues that finite games offer wealth, status, and power, while infinite games provide something more subtle and grander, such as true freedom and endless possibility. The book offers insights into how approaching life as either a finite or infinite game affects one's choices, satisfaction, and success[2][4][5].

Consolations

The Solace, Nourishment and Underlying Meaning of Everyday Words

David Whyte

In 'Consolations,' David Whyte delves into 52 everyday words, from 'Alone' to 'Work,' each serving as a doorway into the deeper currents of human experience. The book invites readers to meditate on the meanings and contexts of these words, exploring themes such as pain, joy, honesty, anger, and vulnerability. Whyte's essays are characterized by their poetic and thoughtful consideration, offering insights that stir both intellectual and emotional reactions. The book is praised for its beautiful, soulful, and thought-provoking writing, making it a valuable resource for spiritual formation and personal reflection.

In Search of Lost Time

Swann's Way

Stephane Heuet

Marcel Proust

This graphic adaptation of Marcel Proust's 'In Search of Lost Time' presents the first volume, 'Swann's Way', in a compressed and visually engaging format. The adaptation, likened to a 'piano reduction of an orchestral score', retains the fundamental architecture and themes of Proust’s work, including time, art, and the elusiveness of memory. Stéphane Heuet's detailed illustrations bring to life the narrator Marcel's childhood memories in Combray, capturing the humor, wit, and memorable characters of Proust's original text. This adaptation is designed to make Proust's work more accessible while maintaining its essence and beauty[3][5][4].

Jonathan Livingston Seagull

Richard Bach

Russell Munson

The book tells the story of Jonathan Livingston Seagull, a seagull who is different from the others in his flock. While most seagulls focus on eating and survival, Jonathan is passionate about flying and constantly challenges himself to improve his flight skills. His nonconformity leads to his banishment from the flock, but he continues to pursue his dreams, eventually finding other like-minded seagulls and learning valuable lessons about love, kindness, and transcendence. The story is an allegory about seeking a higher purpose in life and not compromising one's vision, even in the face of societal pressure[2][4][5].

The Phenomenology of Perception

None

Maurice Merleau-Ponty

Maurice Merleau-Ponty's "Phenomenology of Perception" is a seminal work in 20th-century philosophy. It challenges traditional Cartesian dualism by emphasizing the embodied nature of experience. The book explores how our perception of the world is shaped by our physical bodies and their interaction with the environment. Merleau-Ponty's ideas have had a profound impact on various fields, including philosophy, psychology, and art. His work continues to inspire new interpretations and applications in contemporary thought. The book's central theme is the inseparability of mind and body in the process of perception.

In this episode, William Green chats with Christopher Begg, an exceptional hedge fund manager who is the CEO & CIO of East Coast Asset Management. Chris has also taught for many years at Columbia Business School, where he teaches the prestigious Security Analysis course that Warren Buffett took with Ben Graham in 1951. Here, Chris discusses how to stay calm amid market turmoil; how he identifies great businesses; why Tesla could deliver extraordinary long-term returns; & how he builds a balanced life in 7 key areas.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

03:54 - How Christopher Begg handles extreme market turmoil.

04:07 - Why he loves volatility & how he exploits it.

06:27 - What 3 qualities he seeks when identifying an exceptional business.

18:19 - Why temperament is the key to investment success.

28:06 - How Perimeter Solutions embodies what he looks for in a stock.

31:49 - How value investing has evolved to what he calls “Value 3.0.”

42:15 - Why Tesla could deliver “extraordinary” returns over many years.

42:15 - What he thinks of Elon Musk.

01:11:13 - Why the secret of success is “persistent incremental progress.”

01:13:48 - How a 66-day challenge helped Chris to nurture good habits.

01:26:06 - How Buffett & Munger won the investing game with “class & virtue.”

01:34:18 - How to design a balanced, joyful, & spacious life.

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

BOOKS AND RESOURCES

Join Clay and a select group of passionate value investors for a retreat in Big Sky, Montana. Learn more here.
Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
Chris Begg’s investment firm, East Coast Asset Management.
Marcel Proust's In Search of Lost Time.
Tanya Luhrmann's How God Becomes Real.
Maurice Merleau-Ponty's Phenomenology of Perception.
Douglas Adams' The Hitchhiker’s Guide to the Galaxy.
Richard Bach's Jonathan Livingston Seagull.
James Carse's Finite & Infinite Games.
David Whyte's Consolations & Consolations II.
Madeleine Green's song discussed by William & Chris.
William Green’s book, “Richer, Wiser, Happier” – read the reviews of this book.
Follow William Green on X.
Check out all the books mentioned and discussed in our podcast episodes here.
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