The Education of a Value Investor

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Think smarter, not harder with Howard Marks

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Jan 23, 2025

Join Howard Marks, co-founder of Oaktree Capital, and Guy Spier, founder of Aquamarine Capital, as they share invaluable insights into successful investing. They discuss the necessity of second-level thinking and the importance of mastering market cycles. Howard reflects on navigating major market events while Guy emphasizes emotional discipline and authenticity. Together, they champion the significance of independent decision-making, prioritizing values over profits, and the role of resilience in achieving lasting success in both investing and life.

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insights

INSIGHT

Artisans vs. Factories

In the investment world, there's a spectrum from artisans focused on excellence to factories focused on growth.
Prioritizing size and asset gathering can compromise investment performance.

insights

INSIGHT

Honest Writing

Writing for marketing purposes can compromise honesty and truthfulness.
Great writing involves taking risks and sometimes writing against one's own interests.

insights

INSIGHT

Origins of Values

Values are likely shaped by early environment and experiences, not innate.
Values can be instilled through various influences, including parents, readings, or impactful events.

Get the Snipd Podcast app to discover more snips from this episode

Building an Investment Vision

03:21 • 10min

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Values Over Profits: A Commitment to Excellence in Investment

13:04 • 4min

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Navigating Integrity in Investment Writing

16:43 • 17min

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Embracing Authenticity and Humility in Life

33:37 • 2min

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Navigating the Paradoxes of Investment Success

35:12 • 18min

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#822

• Mentioned in 24 episodes

The education of a value investor

Guy Spier

In this book, Guy Spier narrates his early career struggles in investment banking on Wall Street and his transformation into a value investor. The book covers his experiences working at D.H. Blair, his education at Oxford and Harvard Business School, and the significant influences of Warren Buffett and Charlie Munger on his investment philosophy. It also emphasizes the importance of authenticity, continuous learning, and ethical considerations in investing. The book has been translated into several languages and has sold over 175,000 copies in English.

#4042

• Mentioned in 7 episodes

Investing The Last Liberal Art

Robert G Hagstrom

In 'Investing: The Last Liberal Art', Robert G. Hagstrom delves into fundamental investing concepts by drawing from multiple fields outside of economics. Inspired by Charlie Munger's 'latticework of mental models', Hagstrom argues that good investment decisions cannot be made solely on finance theory. The book discusses how theories from physics, biology, sociology, psychology, philosophy, and literature can be applied to investing research. It also includes a new chapter on mathematics and updates reflecting the economic developments since 2008. The book emphasizes the importance of a broad education and critical thinking in investment performance.

#30

• Mentioned in 196 episodes

12 Rules for Life

An Antidote to Chaos

Jordan B Peterson

In this book, Jordan B. Peterson offers twelve profound and practical rules for living a meaningful life. He argues that happiness is a fleeting and unpredictable goal, and instead, people should seek meaning as a defense against the suffering inherent in life. The book is divided into chapters, each representing one of the twelve rules, such as 'Stand up straight with your shoulders back,' 'Treat yourself like someone you are responsible for helping,' and 'Pursue what is meaningful (not what is expedient). ' Peterson draws on examples from his clinical practice, personal life, cutting-edge psychology, philosophy, and ancient myths to provide a guide for personal improvement and coping with adversity.

#2281

• Mentioned in 11 episodes

Pioneering portfolio management

An Unconventional Approach to Institutional Investment, Fully Revised and Updated

David Swensen

This book provides a comprehensive guide for actively managed investment portfolios, drawing from David F. Swensen's experience as Yale's Chief Investment Officer. It outlines an unconventional approach to institutional investment, focusing on non-traditional assets such as private equity and venture capital. Swensen offers insights into asset allocation, risk management, selecting investment advisers, and navigating market pitfalls. The book is filled with real-world examples and strategies that have contributed to Yale's endowment's remarkable annualized returns of 16. 2 percent.

#4118

• Mentioned in 6 episodes

A short history of financial euphoria

John Kenneth Galbraith

In this book, John Kenneth Galbraith traces the history of significant speculative episodes in the economy, from the tulip craze of the seventeenth century to the recent plague of junk bonds. He exposes how normally sane people display reckless behavior in pursuit of profit, attributing these behaviors to a 'notoriously short' financial memory that leads to market collapses. Galbraith emphasizes that recognizing these patterns can help guard against future recessions and improve financial stability. The book underscores the cyclical nature of financial euphoria, driven by mass psychology and leverage, and warns against the illusion that wealth is a measure of intelligence.

#781

• Mentioned in 25 episodes

Mastering the market cycle

Getting the Odds on Your Side

Howard Marks

In 'Mastering the Market Cycle: Getting the Odds on Your Side,' Howard Marks provides a comprehensive overview of market cycles, emphasizing the importance of understanding the patterns of ups and downs influenced by economics, markets, companies, and human psychology. Marks draws on his decades of experience to explain how investors can position their portfolios to take advantage of market cycles by studying past cycles, understanding their origins, and remaining alert for the next cycle. The book highlights that market cycles are driven by cause-and-effect relationships and that investors should prepare rather than predict market outcomes. It also delves into the psychological markers and emotional factors that influence investor behavior during different phases of the cycle.

#132

• Mentioned in 90 episodes

Richer, Wiser, Happier

How the World's Greatest Investors Win in Markets and Life

William Green

In Richer, Wiser, Happier, William Green draws on interviews conducted over twenty-five years with many of the world’s greatest investors. The book highlights that the most successful investors are mavericks and iconoclasts who question conventional wisdom and think rationally, rigorously, and objectively. They maximize their odds of long-term success in markets and life by drawing insights from diverse fields such as neuroscience, economic history, psychology, philosophy, and more. Green explains how these investors can teach us not only how to become rich but also how to improve our thinking, decision-making, risk assessment, and resilience, and how to turn uncertainty to our advantage.

#718

• Mentioned in 27 episodes

The most important thing

Jean Ure

While specific details about the plot are not readily available, Jean Ure's books generally delve into the lives of young characters navigating various challenges and learning valuable life lessons. This book is likely to follow a similar pattern, focusing on the emotional and social development of its characters.

In this engaging podcast, Howard Marks, co-founder of Oaktree Capital, and Guy Spier, founder of Aquamarine Capital, share invaluable investment wisdom with Roi Lipovetzky, a former MBA student and current investment professional at Oakmount Capital.

The conversation explores key principles of successful investing, such as mastering market cycles, second-level thinking, risk management, and the importance of long-term, contrarian positions. Howard reflects on his experience through major market events, while Guy emphasizes the need for emotional discipline and unconventional thinking.

A key theme in their discussion is the importance of being true to oneself, especially in a world that often values conformity. Both Howard and Guy highlight the value of making independent decisions and staying grounded in one’s own principles, rather than trying to please others or follow popular trends.

With years of collective experience, Howard and Guy provide deep insights into the mindset needed for lasting success in investing and life.

Full transcript available here: https://aqfd.docsend.com/view/2nv2iqixj8rm7bb7

Contents:

(00:00) A Journey of Learning: Insights from Howard Marks, Guy Spier an Roi Lipovetzky

(03:20) Focusing on Excellence: Howard Marks on Building Oaktree for the Long Term

(07:19) Writing for Investors, Not for Entertainment

(18:09) Honesty, Risk and Purpose

(27:23) The Value of Fun: Howard Marks on Enjoyment, Work, and Investing

(33:38) Risk, Resilience, and Staying True to Your Principles

(41:12) Closing Reflections: The Power of Truth and Clarity

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