We Study Billionaires - The Investor’s Podcast Network RWH060: What Buffett, Munger & Bill Miller Taught Me w/ Robert Hagstrom
In this engaging conversation, Robert Hagstrom, Chief Investment Officer at Equity Compass and author of 'The Warren Buffett Way', shares invaluable investment wisdom from legends like Buffett, Munger, and Bill Miller. He discusses the strategic brilliance of focused, low-turnover portfolios and the common mistakes investors make, especially Buffett's. Robert reveals his biggest holding—Nvidia—and explains why AI struggles with market nuances. Plus, he reflects on the life lessons learned from Buffett and the unique challenges of investing in private equity.
02:08:33
Multidisciplinary Thinking Pays Off
- Charlie Munger and Bill Miller taught Hagstrom multidisciplinary thinking that improved his investing.
- Drawing on philosophy, biology, and literature yields practical payoff when evaluating businesses.
Eliminate News To Think Deeply
- Turn off financial news and reclaim time for deep study and company research.
- Build a low-turnover, concentrated portfolio so you don't need constant market monitoring.
Read Books Selectively And Actively
- Screen books before committing eight hours by skimming forewords, bibliographies, chapters, and the ending.
- Annotate and re-read books that pass the test to turn ideas into lasting insight.
Get the Snipd Podcast app to discover more snips from this episode
Get the app 1 chevron_right 2 chevron_right 3 chevron_right 4 chevron_right 5 chevron_right 6 chevron_right 7 chevron_right 8 chevron_right 9 chevron_right 10 chevron_right 11 chevron_right
Intro
00:00 • 3min
Exploring Investment Wisdom from Market Legends
02:32 • 2min
Cultivating a Multidisciplinary Mindset
04:44 • 19min
The Value of Facts in Rapid Decision Making
23:28 • 3min
Enhanced Protection for Cryptocurrency and Privacy Solutions
26:41 • 3min
Investing with Insight: The Role of AI and Human Judgment
30:11 • 31min
Navigating Investments Amid Government Influence
01:01:37 • 5min
Resilience Through Stoicism
01:06:27 • 8min
Bitcoin and the Contrarian Investor
01:14:33 • 26min
The Psychology of Investing
01:40:32 • 21min
Lessons from Investment Legends
02:01:29 • 12min
#4340
• Mentioned in 7 episodes
The Warren Buffett portfolio
Mastering the Power of the Focus Investment Strategy
Robert G Hagstrom
This book introduces the concept of focus investing, a strategy that has historically outperformed the market.
Hagstrom explains how to build and manage a concentrated portfolio, similar to Warren Buffett's approach.
He demonstrates how to select a few outstanding companies with high probability of continued strong performance and how to allocate investment funds proportionately.
The book also delves into the intellectual framework for managing such a portfolio, including understanding price volatility, market psychology, and the importance of intellectual fortitude.
It serves as a companion to Hagstrom's earlier work, 'The Warren Buffett Way', by providing tools for organizing and managing a focus portfolio.
#3459
• Mentioned in 8 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.
#56
• Mentioned in 150 episodes
The intelligent investor
Jason Zweig
Benjamin Graham
Written by Benjamin Graham, 'The Intelligent Investor' is a seminal work on value investing that has inspired millions since its original publication in 1949.
The book emphasizes the importance of distinguishing between investing and speculation, calculating the intrinsic value of companies, and maintaining a margin of safety.
The revised edition includes updated commentary by Jason Zweig, who provides modern examples and insights to help readers apply Graham's principles in today's market.
Warren Buffett, a disciple of Graham, has praised the book as 'the best book about investing ever written'.
#5927
• Mentioned in 5 episodes
The Metaphysical Club
A Story of Ideas in America
Louis Menand
This book delves into the intellectual and cultural history of late 19th- and early 20th-century America, focusing on the lives and ideas of four key figures: Oliver Wendell Holmes Jr., William James, Charles Sanders Peirce, and John Dewey.
It explores how these thinkers, associated with the informal 'Metaphysical Club' in Cambridge, Massachusetts, contributed to the development of pragmatism.
The book also examines the broader social and historical context, including the impact of the American Civil War and the emergence of new scientific disciplines like statistics and evolutionary biology.
Menand's work is praised for its detailed biographical accounts and its insightful analysis of how these thinkers shaped modern American thought.
#3459
• Mentioned in 8 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.
#314
• Mentioned in 52 episodes
How to Read a Book
The Classic Guide to Intelligent Reading
Edward Holland
Mortimer J. Adler
Charles Lincoln Van Doren
Originally published in 1940 and revised in 1972, this book is a classic guide to intelligent reading.
It describes the art of reading as the process by which a mind elevates itself through its own operations on the symbols of readable matter.
The authors emphasize active reading, highlighting the importance of keen observation, available memory, range of imagination, and an intellect trained in analysis and reflection.
The book provides practical lessons on how to read books effectively, including inspectional reading, analytical reading, and syntopical reading, to achieve a deeper understanding of the material.
#1376
• Mentioned in 18 episodes
The Warren Buffett Way
Investment Strategies of the World's Greatest Investor
Robert G Hagstrom
This book provides an in-depth examination of Warren Buffett's investment strategies, highlighting his approach to valuing businesses, his criteria for selecting investments, and the key principles that have contributed to his remarkable success.
It emphasizes Buffett's focus on understanding the business rather than speculating on stock prices, and it outlines his business, management, and financial tenets for evaluating potential investments.
In this episode, William Green chats with Robert Hagstrom, Chief Investment Officer & Senior Portfolio Manager at Equity Compass. Robert is the author of a classic book, “The Warren Buffett Way,” which lays out the principles that made Buffett the greatest investor of all. Here, Robert shares life-changing lessons he learned from Buffett & two other icons: Charlie Munger & Bill Miller. He also explains why a focused, low-turnover portfolio is a brilliant but difficult strategy.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro 04:39 - How Robert Hagstrom became a multidisciplinary thinker. 08:09 - How to think better & invest better by tuning out the noise. 26:01 - What mistake Warren Buffett made most frequently. 35:30 - Why AI falls short when it comes to investment decisions. 35:30 - Why Nvidia is Robert’s biggest holding. 01:04:49 - How Miller endured & recovered from a devastating mistake. 01:14:43 - What insights led Bill Miller to make billions in Amazon & Bitcoin. 01:32:04 - Why it’s smart but really hard to own a concentrated portfolio. 01:34:29 - Why Robert views Modern Portfolio Theory with disdain. 01:42:23 - What advice Robert received from investing giant Bill Ruane. 01:48:06 - Why you should be deeply wary of investing in private equity. 02:04:04 - What life lesson Robert has learned from Buffett.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Join Clay and a select group of passionate value investors for a retreat in Big Sky, Montana. Learn more here.
- Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
- Robert Hagstrom’s investment firm, Equity Compass Investment Management.
- Robert Hagstrom's books: The Warren Buffett Way, The Warren Buffett Portfolio, Investing: The Last Liberal Art.
- Mortimer Adler's How to Read a Book.
- Louis Menand's The Metaphysical Club.
- William Green’s podcast interview with Bill Miller.
- William Green’s podcast interview with Bill Nygren.
- William Green’s book, “Richer, Wiser, Happier” – read the reviews of this book.
- Follow William Green on X.
- Check out all the books mentioned and discussed in our podcast episodes here.
- Enjoy ad-free episodes when you subscribe to our Premium Feed.
NEW TO THE SHOW?
- Get smarter about valuing businesses in just a few minutes each week through our newsletter, The Intrinsic Value Newsletter.
- Check out our We Study Billionaires Starter Packs.
- Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok.
- Browse through all our episodes (complete with transcripts) here.
- Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
- Enjoy exclusive perks from our favorite Apps and Services.
- Learn how to better start, manage, and grow your business with the best business podcasts.
SPONSORS
Support our free podcast by supporting our sponsors:
- SimpleMining
- HardBlock
- AnchorWatch
- Human Rights Foundation
- Cape
- Unchained
- Vanta
- Shopify
- Onramp
- Abundant Mines
HELP US OUT!
Help us reach new listeners by leaving us a rating and review on Spotify! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Learn more about your ad choices. Visit megaphone.fm/adchoices
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm