We Study Billionaires - The Investor’s Podcast Network

TIP646: How To Understand A Business Like A Pro w/ Kyle Grieve

Jul 21, 2024

01:09:35

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Guest Kyle Grieve discusses understanding businesses for long-term investing. Topics include the importance of avoiding dogmatic thinking, evaluating business growth prospects, building a strong business grapevine, funding growth strategies, and seeking transparency in management teams. The episode also explores the future of business profits, consistently monitoring investments, and balancing growth with conservative investing.

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Quick takeaways

Thorough research includes analyzing competitors and listening to Q&A sessions for successful investing.

Philip Fisher's book emphasizes understanding business potential and the value of growth in investments.

Balancing risk and safety in investment strategies involves conservative investments and recognizing growth opportunities.

Deep dives

Key Insights on Analyzing Businesses for Investing

Analyzing public companies for investment requires thorough research, including reviewing quarterly and annual reports, listening to Q&A sessions, and studying competitors. Philip Fisher's book, 'Common Stocks and Uncommon Profits,' offers valuable guidance on identifying essential information, understanding its significance, and connecting historical case studies to investing concepts. The book delves into finding innovative products or services, emphasizing future business potential over present earnings, evaluating research and development spending, and recognizing the importance of investing in growth.

Analyzing Businesses and Philip Fisher's Evaluation Criteria

04:15

Invest in R&D, Reap Future Rewards

01:21

Strategic Equity Issuance: Timing is Key

02:36

Leveraging Power in Business Models

01:33

Intro

2min

Analyzing Investment Principles and Business Evaluation through Philip Fisher's Perspective

16min

Exploring Luggage Durability, High-Yield Cash Accounts, and Financial Newsletter Sponsorship

3min

Building Competitive Advantages and Business Funding Strategies

21min

Understanding Business Evaluation and Stock Prices

2min

Exploring Stock Ideas, Shopify Ecommerce Platform, and AT&T Business Support

3min

Exploring Philip Fisher's Investing Philosophy and Lessons

4min

Importance of Future Earnings, Management Quality, and Investing Strategies

14min

On today’s episode, Kyle Grieve discusses a book that is near and dear to Warren Buffett’s heart, Common Stocks and Uncommon Profits by Philip Fisher. He’ll discuss why the book was so influential on Warren’s transition towards quality businesses, why going deep into a business is vital to successful long-term investing, specific ways to learn more about a business, it’s management, and its products, how to create your own business grapevine to monitor your investments, details on how Philip Fisher’s investing philosophy and how it developed, and a whole lot more!

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

04:12 - The importance of avoiding dogmatic thinking in investing

05:13 - Why owning growing businesses is so powerful for great investments

05:47 - How to evaluate a business growth prospects

08:43 - How you should look at relations between a business and its employees

14:44 - How Amazon has strengthened their moat by thinking long-term

26:27 - The three ways a business can fund its growth and which are the most beneficial to shareholders

33:56 - Why you should seek transparency in your management teams

35:17 - How to balance investing in growth businesses with being a conservative investor

44:57 - Why having the ability to see the future of a business's profits is so key for minimizing risk

53:07 - The importance of consistently monitoring your businesses, no matter how well they've performed for you in the past

And so much more!

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

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
Buy Common Stocks and Uncommon Profits by Philip Fisher here.
Buy Where The Money Is by Adam Seessel here.
Buy 7 Powers by Hamilton Helmer here.
Buy What I Learned About Investing From Darwin by Pulak Prasad here.
Follow Kyle on Twitter and LinkedIn.
Check out all the books mentioned and discussed in our podcast episodes here.
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