We Study Billionaires - The Investor’s Podcast Network

RWH043: Survive & Thrive w/ Guy Spier: Part 2

34 snips

Mar 17, 2024

In this engaging discussion, Guy Spier, a prominent hedge fund manager and co-author of "The Education of a Value Investor," shares invaluable investment wisdom. He warns against dumb investment behaviors and the perils of leverage while emphasizing the importance of cultivating strong personal relationships. Spier delves into self-reflection and personal growth as keys to navigating conflicts and improving interactions. He reflects on the role of money in a fulfilling life and the wisdom gained from literature, showcasing how introspection can lead to a richer existence.

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ADVICE

Avoiding Catastrophe

Avoid shorting stocks and using leverage to achieve long-term compounding.
These strategies increase risk and can lead to significant losses.

ADVICE

Durable Assets

Invest in durable assets that can withstand market fluctuations and unforeseen events.
Avoid companies with assets that could disappear quickly, like those dependent on FDA approval.

ADVICE

Relationship Stability

Prioritize strong relationships to support a successful investing journey.
Relationship issues can cloud judgment and lead to irrational decisions.

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Doing Imago Relationship Therapy in the Space Between

Harville Hendrix

Helen LaKelly Hunt

This book presents the essential principles and practices of Imago Relationship Therapy, developed by Harville Hendrix and Helen LaKelly Hunt. It guides therapists in helping couples create a Conscious Partnership by practicing Imago Dialogue, which fosters mutual empathy and understanding. The book includes examples, exercises, and dialogues to enhance therapeutic practice.

Hitler's Willing Executioners

Ordinary Germans and the Holocaust

Daniel Jonah Goldhagen

In this book, Goldhagen challenges common myths about the Holocaust, arguing that tens of thousands of ordinary Germans were actively involved in the extermination of European Jewry. He posits that a climate of 'eliminationist anti-Semitism' in German society made Hitler's genocidal goals possible. The book draws on unused archival materials, including the testimony of the killers themselves, to illustrate how ordinary Germans willingly participated in the persecution and murder of Jews during the Holocaust[1][4][5].

The Red and The Black

Stendhal

Set in France during the Bourbon Restoration, 'The Red and the Black' follows Julien Sorel, a young man from a humble background who seeks to rise through society using his intelligence and charm. The novel explores themes of ambition, love, and the societal pressures of the time. It is a satirical critique of French society and politics, reflecting Stendhal's own experiences and views on the era.

Winter is coming

G. K. Kasparov

Garry Kasparov

In 'Winter Is Coming', Garry Kasparov examines the rise of Vladimir Putin and how his regime poses a significant threat to global political liberty. Kasparov argues that Putin's aggressive policies are a result of Russia's economic struggles and the need to maintain power through nationalist propaganda. The book urges the free world to take a strong stance against Putin's authoritarianism.

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.

David Copperfield

Paul Lorain

Charles Dickens

A classic novel by Charles Dickens, following the life of David Copperfield from childhood to adulthood.

The art of learning

An Inner Journey to Optimal Performance

Josh Waitzkin

The Art of Learning takes readers through Josh Waitzkin’s unique journey to excellence in both chess and Tai Chi Chuan. The book explains how a well-thought-out, principled approach to learning separates success from failure. Waitzkin discusses how achievement is a function of a lifestyle that fuels a creative, resilient growth process. He shares his methods for systematically triggering intuitive breakthroughs, honing techniques, and mastering performance psychology. The book also emphasizes the importance of embracing defeat, making mistakes work for you, and turning weaknesses into strengths. It is divided into sections that cover his rise in chess, his transition to Tai Chi, and the similarities in preparation and execution between the two disciplines.

In Search of Lost Time

Swann's Way

Stephane Heuet

Marcel Proust

This graphic adaptation of Marcel Proust's 'In Search of Lost Time' presents the first volume, 'Swann's Way', in a compressed and visually engaging format. The adaptation, likened to a 'piano reduction of an orchestral score', retains the fundamental architecture and themes of Proust’s work, including time, art, and the elusiveness of memory. Stéphane Heuet's detailed illustrations bring to life the narrator Marcel's childhood memories in Combray, capturing the humor, wit, and memorable characters of Proust's original text. This adaptation is designed to make Proust's work more accessible while maintaining its essence and beauty[3][5][4].

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.

The Developing Mind

How Relationships and the Brain Interact to Shape Who We Are

Daniel Siegel

This influential book synthesizes research from multiple disciplines to explain how neural processes are shaped by interpersonal relationships throughout life. It provides insights into promoting healthy development and resilience, even when early experiences are not optimal. The third edition incorporates recent research findings and refines core hypotheses of interpersonal neurobiology.

In this episode, William Green chats with renowned hedge fund manager Guy Spier, who has run the Aquamarine Fund since 1997. This conversation has been split into two episodes. Here, in Part 2, Guy shares insights on how to succeed over the long run by avoiding dumb investment behavior, building the right relationships, and recognizing our weaknesses. This is an unusually candid conversation between William & Guy—old friends who collaborated on Guy’s classic book, “The Education of a Value Investor.”

IN THIS EPISODE, YOU’LL LEARN:

00:00 - Intro

01:36 - What dumb investment behavior Guy Spier strives to avoid

05:12 - What type of companies he shuns

07:05 - Why good relationships are a key to financial & personal success

07:25 - Why we should be especially wary of leverage

15:46 - Why it’s vital to find “friends along the path” who support us emotionally

29:34 - Why it’s helpful to shine a light on our own weaknesses

41:18 - How he handles painful, contentious conversations

51:24 - How to engage with people whose beliefs & experiences differ from ours

1:07:05 - What role money does—or doesn’t—play in a rich & meaningful life

1:11:11 - What Guy learned from Warren Buffett’s exercise of writing your own obituary

1:31:39 - How reading great literature can make you wiser & happier

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

BOOKS AND RESOURCES

Related Episode: William Green’s 2023 interview with Guy Spier | YouTube Video.
Related Episode: William Green’s 2022 interview with Guy Spier | YouTube Video.
Related Episode: William Green’s interview with Daniel Goleman & Tsoknyi Rinpoche | YouTube Video.
Related Episode: William Green’s interview with Chris Davis | YouTube Video.
The Dishcast podcast with David Brooks on “Transcending Hate & Loneliness”.
Daniel Siegel’s book “The Developing Mind”.
Harville Hendrix’s book “Doing Imago Relationship Therapy in the Space-Between”.
Marcel Proust’s book “In Search of Lost Time”.
Guy Spier’s book, “The Education of a Value Investor" – read reviews of the book.
Subscribe to Guy Spier’s free newsletter.
Guy Spier’s podcast and website.
Guy Spier interviews William Green about his book, “Richer, Wiser, Happier”.
William Green’s book, “Richer, Wiser, Happier” – read the reviews of this book.
Follow William Green on X (AKA Twitter).
Check out all the books mentioned and discussed in our podcast episodes here.

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RWH043: Survive & Thrive w/ Guy Spier: Part 2

Avoiding Catastrophe

Durable Assets

Relationship Stability

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