We Study Billionaires - The Investor’s Podcast Network RWH013: Move Slow, Win Big W/ Thomas Russo
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Sep 18, 2022 In this engaging discussion, Thomas Russo, a renowned global investor known for his long-term investment strategies, shares invaluable insights from his encounters with legends like Warren Buffett and Bill Ruane. He reveals his philosophy on enduring short-term pain for long-term gains and emphasizes the critical nature of brand loyalty. Russo discusses the risks of agency costs, his successful investment journey with Berkshire Hathaway, and the significance of ethical investing. He also explores how curiosity fuels his investment decisions and the role of innovation in combating climate change.
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Buffett's See's Candies Lesson
- Tom Russo's 1982 encounter with Warren Buffett emphasized valuing businesses and brands.
- Buffett's strategy with See's Candies highlighted enduring pain for long-term gain.
Agency Cost
- Agency cost, the misuse of entrusted assets, is a significant investment risk.
- Minimize agency cost by partnering with people who prioritize your interests like Warren Buffett does.
Berkshire's Reinvestment Model
- Berkshire Hathaway's structure minimizes agency costs and allows reinvestment.
- Their "send it back to Omaha" model efficiently allocates capital within their subsidiaries.
