We Study Billionaires - The Investor’s Podcast Network

TIP538: Richer, Wiser, Happier, Q1 2023 w/ William Green & Stig Brodersen

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Mar 26, 2023

Explore the intriguing relationship between wealth and happiness for billionaires. Discover the importance of aligning values with investment choices and the ethical considerations that can lead to true fulfillment. Reflect on lessons from investment legends like Ray Dalio and Charlie Munger. Learn how pain and reflection can foster personal growth, while the right partnerships can build trust in finance. Finally, delve into the psychology of investment decisions and the emotional factors that influence success.

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ADVICE

Values-Based Investing

Invest with people you trust and whose interests align with yours.
Consider fee structures and skin in the game when evaluating asset managers.

INSIGHT

Judging Integrity

Past behavior provides clues about a person's integrity.
Look for consistent patterns of ethical actions, not just promises.

ADVICE

Diversification Strategy

Diversify investments, even when trusting individuals or funds.
Hedge against potential misjudgments by spreading risk.

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Benjamin Graham and the Power of Growth Stocks

Lost Secrets for Finding Winning Growth-Stock Companies

Frederick K. Martin

This book provides an advanced, hands-on approach to analyzing and selecting winning growth-stock companies using Benjamin Graham's valuation formula. It offers practical strategies for building a profitable portfolio by focusing on long-term growth and minimizing risk. The book includes real-world case studies and step-by-step guidance on forecasting company growth and estimating future value.

Competition Demystified

Bruce Greenwald

Competition Demystified offers a streamlined approach to understanding business strategy by emphasizing barriers to entry as the primary factor in achieving competitive advantages. The book simplifies Michael Porter's five-force model, focusing on how companies can create and maintain advantages through customer captivity, lower production costs, or economies of scale. It provides practical examples across various industries and discusses strategies for maintaining market stability through cooperation and bargaining.

The ABC of relativity

Bertrand Russell

The ABC of Relativity by Bertrand Russell is a seminal work that explains Albert Einstein's theory of relativity in an accessible manner. First published in 1925, it remains a definitive reference guide, making complex concepts understandable for a broad readership. The book explores topics such as space-time, the special theory of relativity, and Einstein's law of gravitation, providing a comprehensive overview of relativity's implications on our understanding of the universe.

Big money thinks small

Joel Tillinghast

The little book of valuation

Aswath Damodaran

A Man for All Markets

From Las Vegas to Wall Street, How I Beat the Dealer and the Market

Edward O. Thorp

In this book, Edward O. Thorp recounts his remarkable career, from inventing card counting systems to beat blackjack dealers, to developing mathematical formulas that gave him an edge in the financial markets. Thorp's story includes his invention of the world's first wearable computer to predict roulette outcomes, his detection of the Bernie Madoff scheme, and his interactions with notable figures like Warren Buffett and Rudy Giuliani. The book offers practical wisdom on investing, asset allocation, and wealth management, making it an intellectual thrill ride for readers interested in finance and mathematics.

Principles

Ray Dalio

In 'Principles: Life and Work', Ray Dalio shares the principles he has developed over his career that have helped him achieve success. The book is divided into three sections: the first section explains how Dalio's principles were formed from his personal and professional experiences; the second section outlines life principles, such as embracing reality, being radically open-minded, and understanding the importance of pain and reflection in personal growth; and the third section focuses on work principles, including the use of radical truth and radical transparency to transform an organization. Dalio advocates for systematizing decision-making into algorithms, learning from failures, and building a culture where it is okay to make mistakes but unacceptable not to learn from them.

Call me Ted

Ted Turner

In 'Call Me Ted,' Ted Turner shares his life story, from his difficult childhood and the death of his teenage sister and father, to his rise as a media mogul with the creation of CNN and TBS. The book covers his business philosophy, his turbulent marriage life, including his marriage to Jane Fonda, and his various other ventures such as owning the Atlanta Braves and his sailing achievements. Turner also discusses the disastrous merger of Time Warner with AOL and provides candid insights into his personal and professional life[2][5][6].

The Joys of Compounding

Gautam Baid

In 'The Joys of Compounding', Gautam Baid offers a comprehensive approach to value investing, drawing from the wisdom of investing legends like Warren Buffett and Ben Graham. The book emphasizes the importance of self-improvement and intellectual development as key components of successful investing and living. It combines practical investment advice with philosophical reflections, making it a unique resource for investors and anyone interested in personal growth.

Delivering happiness

A Path to Profits, Passion and Purpose

Tony Hsieh

In 'Delivering Happiness,' Tony Hsieh shares his entrepreneurial journey, from co-founding LinkExchange to leading Zappos to its remarkable success. The book emphasizes the importance of company culture, customer service, and employee happiness in achieving business success. Hsieh outlines three core sections: 'Profits,' 'Profits and Passion,' and 'Profits, Passion, and Purpose,' highlighting key lessons such as the superiority of product quality over marketing, the importance of passion in entrepreneurship, and the critical role of company culture in driving success. He also introduces frameworks for happiness, including perceived control, progress, connectedness, and vision/meaning, and how these can be applied to create a happy and productive workplace[2][4][5].

Thinking, Fast and Slow

Daniel Kahneman

In this book, Daniel Kahneman takes readers on a tour of the mind, explaining how the two systems of thought shape our judgments and decisions. System 1 is fast, automatic, and emotional, while System 2 is slower, effortful, and logical. Kahneman discusses the impact of cognitive biases, the difficulties of predicting future happiness, and the effects of overconfidence on corporate strategies. He offers practical insights into how to guard against mental glitches and how to benefit from slow thinking in both personal and business life. The book also explores the distinction between the 'experiencing self' and the 'remembering self' and their roles in our perception of happiness.

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.