We Study Billionaires - The Investor’s Podcast Network TIP582: Quality & Defensive Investing w/ Christian Billinger
Oct 13, 2023
Christian Billinger, chairman of Billinger Förvaltnings AB, delves into his quality investing philosophy rooted in long-term returns. He stresses the importance of evaluating management integrity and reinvestment rates, and discusses why having 'soul in the game' is crucial. Christian highlights his preference for family-owned public equities to minimize risk and shares insights from working with institutional investors. Additionally, he explores the investment dynamics of the spirits industry and contrasts the philosophies of Berkshire Hathaway and Markel. Tune in for a wealth of knowledge!
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Quality Investing Defined
- Quality investing prioritizes returns from business performance, not trading.
- It's a risk management framework focused on long-term intrinsic value growth.
Reinvestment Analysis
- Reinvestment analysis should consider both cash flow statements and income statements.
- High reinvestment rates are desirable, but some companies grow without much reinvestment.
Assessing Runway for Growth
- Assessing a company's runway involves analyzing market growth and the company's ability to outpace it.
- Focus on industries where growth rates are easier to predict.