The Meb Faber Show - Better Investing Francois Rochon - Outperforming the Market for 30+ Years Through Patience, Humility & Rationality | #578
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Apr 8, 2025 Francois Rochon, President of Giverny Capital, has achieved an impressive return of over 15% annually for more than 30 years. Influenced by legends like Peter Lynch and Warren Buffett, he emphasizes the values of patience, humility, and rationality in investing. Rochon reflects on his investment mistakes and the lessons learned from them. He discusses the real costs of stock-based compensation and the importance of focusing on company fundamentals. The conversation also touches on evaluating cryptocurrencies versus stable investments like Berkshire Hathaway.
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Valuation Triumphs
- Overvalued stocks eventually return to reasonable levels, but it takes time.
- Patience is key during market corrections; valuations ultimately matter.
Cintas Missed Opportunity
- Francois Rochon missed out on Cintas' growth because he felt the P/E ratio of 25-26 was too high.
- However, the stock significantly outperformed, highlighting the potential cost of being too cautious.
Learning from Mistakes
- Learn from investment mistakes, both from actions taken and opportunities missed.
- Analyze past decisions to improve future investment strategies.
