We Study Billionaires - The Investor’s Podcast Network

RWH016: The Best Of The Best w/ François Rochon

Nov 13, 2022

In this insightful conversation, François Rochon, founder of Giverny Capital and an expert in value investing, shares his time-tested investment strategies. He emphasizes the critical concept of 'margin of safety' and the importance of long-term thinking. Rochon discusses how to navigate bear markets, the value of humility in investing, and highlights companies he admires. Moreover, he candidly addresses his own investment mistakes through an annual 'Podium of Errors' list, illustrating his commitment to learning and growth in the investment landscape.

01:37:53

Episode guests

François Rochon

AI Chapters

Episode notes

Intro

2min

Igniting a Passion for Investing

6min

The Margin of Safety in Investing

22min

Balancing Growth and Resilience

6min

Finding the Balance in Investment Diversification

2min

Investing Beyond Predictions

21min

The Simplicity of Investing

9min

Investing in Art and Stocks: A Passionate Pursuit

13min

The Absentee Gene and the Power of Independent Thinking

18min

10.

Reflections on Investment Wisdom and Future Insights

2min

IN THIS EPISODE, YOU’LL LEARN:

02:51 - How François Rochon began his market-beating investment journey three decades ago.
08:12 - How the “margin of safety” concept guides him in business, markets, & life.
10:14 - How to succeed by investing in great companies at reasonable valuations.
12:12 - Why it’s critical for investors to have a long time horizon.
15:37 - How to become a better investor by cultivating humility & preparing for disappointment.
16:48 - What he learned from Warren Buffett about the importance of owner’s earnings.
21:47 - Why François resists the temptation to overpay, even for great companies.
25:12 - Why he highlights his investment mistakes in an annual list called the Podium of Errors.
34:03 - How to survive & thrive by taking a middle-of-the-road approach to diversification.
38:30 - Why he believes that market predictions are a waste of time.
40:24 - How he handles bear markets emotionally & uses them to improve his portfolio.
43:10 - Why he loves companies like CarMax, Visa, Alphabet, & Markel.
47:56 - How the president of Constellation Software embodies everything he seeks in a leader.
53:59 - How the best businesses remind François of the beauty & uniqueness of great artworks.
1:11:24 - How he was influenced by studying & meeting investment icon Peter Lynch and what François learned from investing legend Lou Simpson.
1:21:49 - How the best investors succeed by straying from the tribe & forging their own path.
1:15:44 - How it helps him to read broadly about philosophy, art, science, history, & psychology.
1:26:16 - Why it’s rational, not naive, to be an “unwavering optimist.”
1:35:16 - Why François believes that persistence & patience are the key to human achievement.

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, and the other community members.
François Rochon’s Montreal-based investment firm, Giverny Capital.
Giverny Capital Asset Management, his U.S.-based partnership with David Poppe.
PanzaCollection of art built by Count Giuseppe Panza, one of François’ heroes.
William Green’s book, “Richer, Wiser, Happier” – read the reviews of this book.
William Green’s Twitter.

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