We Study Billionaires - The Investor’s Podcast Network

TIP694: The Scuttlebutt Edge: From Research to Returns w/ Kyle Grieve

Jan 26, 2025

Discover the fascinating scuttlebutt method for evaluating investments, popularized by Philip Fisher and Warren Buffett. Learn how gathering insights from customers, employees, and industry specialists can shape your understanding of a business's potential. The podcast emphasizes the importance of asking the right questions and the power of self-reflection in refining decision-making. Engaging in effective networking and sharing personal experiences enriches the scuttlebutt approach, ultimately leading to better investment strategies and returns.

01:12:36

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Quick takeaways

Scuttlebutt is crucial for understanding both bullish and bearish perspectives, aiding investors in building informed convictions.

Engaging with customers, employees, suppliers, and specialists is essential for gaining insights that surpass traditional financial reports.

Self-reflection and journaling empower investors to learn from past decisions, enhancing future decision-making and investment strategies.

Deep dives

Understanding the Value of Scuttlebutt

Scuttlebutt is an essential method for gaining deep insights into a business that traditional reporting cannot provide. Legendary investors like Warren Buffett and Philip Fisher utilized this technique to identify undervalued investments by directly interacting with individuals closely associated with the companies they were interested in. By engaging with customers, employees, suppliers, and industry experts, investors can gather invaluable information that reveals the true health of a business. This method demands significant effort and time but can lead to outsized returns that set successful investors apart from others who rely solely on public financial data.

Intro

2min

The Power of Scuttlebutt in Investing

17min

Investing Insights: The Power of Scuttlebutt Analysis

5min

Insights from Scuttlebutt: Evaluating Business Potential

19min

Leveraging Observations for Business Insights

4min

Navigating Supplier Dynamics in Investments

11min

Rethinking Investment Strategies: The Power of Reflection and Customer Insights

5min

Navigating Supplier Dynamics and Learning from Investment Mistakes

5min

In today's episode, Kyle Grieve will discuss the concept of scuttlebutt, made famous by Philip Fisher in Common Stocks and Uncommon Profits. You’ll learn why scuttlebutt is essential for building conviction and understanding both bullish and bearish perspectives, how it involves learning from key groups connected to a business, how asking the right questions can reveal valuable insights, why Industry specialists and strong networking are crucial for gathering expert knowledge, and how to utilize self-reflection, journaling to continuously improve your decision-making, and much more!

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

02:55 - Why scuttlebutt is so essential in building conviction and learning about a business.

03:32 - Why scuttlebutt can help you understand bullish and bearish perceptions on a business.

10:03 - The four parties related to a business that you should learn from.

26:34 - What you can learn and what questions to ask a business’s employees, from the people working at the “frontline” to the CEO.

36:49 - How Warren Buffett sleuthed GEICO, which was one of the most impactful events in his life.

49:50 - How to learn from industry specialists and what to ask to learn about specific companies or industries.

54:51 - Details on how Li Lu did scuttlebutt on a very successful investment in Timberland.

55:01 - Why networking is so crucial to the scuttlebutt process.

58:11 - How to use self-reflection and journaling to understand better your mistakes and how to avoid them in the future.

01:07:01 - My four-step framework for learning from my investing mistakes.

And so much more!

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

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
Buy Damn Right! Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger here.
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Check out all the books mentioned and discussed in our podcast episodes here.
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We Study Billionaires - The Investor’s Podcast Network

TIP694: The Scuttlebutt Edge: From Research to Returns w/ Kyle Grieve