Financial expert Gary Mishuris discusses the challenges of bottom-up investing in today's market. He emphasizes transparency with clients, the unique approach of Silver Ring Value Partners, and the psychology behind investing. Gary encourages admitting mistakes and changing your mind when necessary, drawing parallels with poker. The podcast also touches on inflation, gold, and the importance of managing investment risks.
Prioritize transparency and client relationships over short-term performance in investing.
Utilize behavioral models and learn from mistakes to improve decision-making.
Diversify investments with assets like gold and quality businesses for risk management.
Deep dives
Value Investing and Behavioral Biases
Gary Meciureth discusses his approach as a long-term concentrated value investor. He emphasizes the importance of behavioral biases and mental models in defense and decision-making. Meciureth highlights the significance of process over outcomes and the need to take advantage of opportunities while staying humble. He points out the challenges of finding investment ideas in the current market environment.
Client Relations and Investment Philosophy
Meciureth reflects on maintaining client relationships during challenging investment periods. He stresses the importance of having clients who understand and trust his investment process, focusing on long-term results rather than short-term performance. By prioritizing process over outcomes and being transparent with clients, he aims to build strong, lasting partnerships based on mutual understanding and realistic expectations.
Self-Improvement and Humility in Investing
The discussion delves into the concept of self-improvement and humility in investing. Meciureth acknowledges the importance of continuous learning and minimizing mistakes in investment decision-making. He shares insights on the value of admitting and learning from errors, emphasizing the need for authentic self-assessment, adaptability, and the ability to change one's mind based on updated information. Meciureth highlights the humbling nature of investing and the significance of remaining grounded in personal principles and behavioral models.
Importance of Self-Understanding for Success
Understanding oneself deeply is crucial for success, as it leads to clarity on personal goals, values, and priorities. By delving into questions like 'Who am I?' and 'What gives me fulfillment?', individuals can align their decisions in work, relationships, and lifestyle. This self-discovery process streamlines choices regarding work, investments, time management, and relationships, facilitating a more coherent and fulfilling life journey.
Preparing for Financial Instability with Gold and Investments
Amidst economic uncertainty and potential financial crises, diversification into assets like gold and successful businesses becomes vital. Gold serves as a hedge against inflation, while investing in robust businesses that generate high returns can outpace inflation. Emphasizing the importance of risk management and sticking to sound investment strategies, the podcast advocates for a diversified portfolio that includes cash reserves, precious metals, and quality investments to mitigate financial risks and prepare for potential economic upheavals.
Gary Mishuris of Silver Ring Value Partners talks about today's market being one of the most challenging periods for bottom-up investing since 2007. In terms of the quality of a business versus its stock price, there isn't a lot of opportunity right now. But he emphasizes that transparency and candor with clients is essential, as is prioritizing the long-term process over short-term performance. (5:19)
Next, Gary describes what sets Silver Ring Value apart from other fund managers. He shares why he left the "sausage factory" of larger firms behind, how his firm makes money for clients rather than off of clients, and how his unique temperament and behavioral models allow him to make better investing decisions. (14:38)
Gary also goes into detail on the psychology behind investing and compares it with a game of poker. He talks about trying to avoid making mistakes, continuously learning from past errors, the importance of having guardrails in place, and cutting your losses. (21:44)
Then, Gary explains why you should never be ashamed to change your mind, even when you haven't received any new information. It's OK to reanalyze the same set of facts and admit that you were wrong, and he cites several examples of investors who have learned and grown from their past mistakes. (31:21)
Lastly, Dan and Corey discuss the consumer price index and gold. Inflation came in hotter than expected, while gold has broken out to new highs. Dan and Corey speculate on how long gold's bull run can last. Plus, they detail gold being a good hedge for retirement against the government's money-printing addiction. (48:18)
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