Talking Billions with Bogumil Baranowski

Quality, Trust, and Patience: Alex Morris on Buffett and Munger Unscripted

Mar 31, 2025

Alex Morris, founder of TSOH Investment Research and author of "Buffett and Munger Unscripted," shares captivating insights on value investing. He discusses the significance of quality management, interest rates, and how they influence investment strategies. Alex emphasizes the importance of a long-term mindset and understanding Mr. Market's psychology. He also highlights the joy of investing beyond mere profit, advocating for a passion-driven approach that fosters real fulfillment and meaning in the investment journey.

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ANECDOTE

Library Days

Alex Morris and a friend spent a summer analyzing businesses like Coca-Cola at the library.
They were inspired by Berkshire Hathaway's shareholder letters.

INSIGHT

Value Investing

Value investing means getting a lot for the expectable future cash flows of a business.
Think like a business owner, considering cash flow, competition, and macro factors.

INSIGHT

Position Sizing and Cash Flow

Position sizing and understanding cash flow dynamics are crucial for long-term investing.
Berkshire Hathaway's large Coca-Cola position exemplifies this.

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Guest: Alex Morris - Founder of TSOH Investment Research and author of "Buffett and Munger Unscripted"

Episode Focus: Buffett and Munger's investment philosophy, value investing principles, and business ownership mindset

Key Topics:

Alex's journey into investing and discovery of Buffett/Munger's teachings

Value investing fundamentals - "getting a lot for the expectable future cash flows"

The importance of quality management and proper incentives

How interest rates and inflation impact investments

Time horizons, volatility vs. risk, and Mr. Market psychology

The right way to run an insurance business (National Indemnity case study)

Finding purpose and meaning in investing beyond financial returns

Notable Quotes:

"Warren says, 'Charlie and I think there is no other kind of investment than a value investment. We don't know how anybody would invest in a non-value investment.'"

"Interest rates basically are the value of assets, what gravity is to matter."

"The room full of lawyers will not save you if you're dealing with the wrong people."

"I look at someone like Satya Nadella at Microsoft... I have a sense for who he is. I'm very comfortable that... he has a broader vision and interest in the business."

"If you come here just for the money, you might not stick around long enough to see the results of what this pursuit can do for you."Podcast Program – Disclosure Statement

Blue Infinitas Capital, LLC is a registered investment adviser and the opinions expressed by the Firm’s employees and podcast guests on this show are their own and do not reflect the opinions of Blue Infinitas Capital, LLC. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.

Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.

Information expressed does not take into account your specific situation or objectives, and is not intended as recommendations appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.