Investing by the Books

David Marcus, a seasoned US investor with a rich background working alongside legends like Michael Price, shares his insights into the financial world. He discusses the strategic maneuvers behind billion-dollar companies and the importance of serial acquisitions. Marcus emphasizes the need for a balanced corporate culture in high-performance settings and the significance of creativity in problem-solving. His own journey from trading desk assistant to a confident investor highlights pivotal lessons learned through personal and market challenges.

Phil Rosenzweig, a celebrated professor at IMD Business School and author of "The Halo Effect", debunks myths in management literature. He discusses how people's perceptions can dramatically alter their judgments about companies and their leaders. Rosenzweig emphasizes the importance of critical thinking and the risks of the halo effect, showcasing its implications in both business and everyday life. He also shares insights on investing strategies, his experiences at Hewlett Packard, and how Warren Buffett's philosophy informs his views on company performance.

Jaime Lester, a seasoned hedge fund veteran with experience at Steinhardt Partners and Greenlight Capital, brings his expertise as an adjunct professor at Columbia Business School. He discusses his book, "Pause to Think," which introduces 32 mental models for decision-making. Jaime emphasizes the importance of structured choices to combat cognitive biases in investing. He explores the power of inversion in investment strategy and shares insights from his journey, advocating for a balance between personal well-being and professional success.

William Barnes, co-founder of In Practise and author of 'In Practise', shares invaluable insights from his extensive interviews with successful operators at companies like Spotify and Constellation Software. He discusses the shift to hands-on research for investment decisions and the significance of employee longevity in thriving businesses. Barnes also explores value-based pricing strategies and the vital role of corporate culture and management tools in achieving profitability. This engaging conversation highlights the intersection of authentic insights and successful investing.

Asif Suria, an entrepreneur and investor known for his expertise in event-driven strategies, shares insights from his book on investing. He delves into six key strategies, including merger arbitrage and stock buybacks, highlighting how specific corporate events can signal lucrative investment opportunities. The conversation also uncovers the role of insider buying, the impact of management changes on company performance, and the intricacies of portfolio construction. Suria’s journey through market inefficiencies offers valuable lessons for savvy investors.

Brett Gardner is an investment analyst at the US-based investment partnership Discerene Group and, since about a week, a published author with his book Buffett’s Early Investments. The focus of our conversation is Brett's book, where he has uncovered a few of Buffett’s investments in the 1950s and 1960s that until now have been rather unknown.For more info about the podcast, go to the episode page and make sure to follow us on X/Twitter. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You’re also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with teamThis episode was recorded on October 9, 2024. The video was unfortunately not recorded due to technical issues.—————————————Episode Chapters(00:00) Introduction by Eddie & Niklas(01:34) Introduction to Brett (04:21) Buffett’s Early Investments(08:47) How the investments were selected(15:30) Marshall-Wells: The first investment(20:52) Philadelphia and Reading (27:36) Walt Disney Productions(36:10) Can Buffett compound $1 million at 50% per year?(39:18) Brett’s current role at Discerene Group(40:53) Two lesser-known book recommendations(45:37) Final remarks—————————————Books MentionedA Random Walk Down Wall Street - Burton Malkiel The Making of an American Capitalist - Roger LowensteinThe Intelligent Investor - Benjamin GrahamSecurity Analysis - Benjamin GrahamSnowball - Alice SchroederBuffett’s Early Investments - Brett Gardner Poor Charlie’s Almanack - Peter KaufmanDamn Right! - Janet LoweThe Halo Effect - Phil RosenzweigGood Strategy Bad Strategy - Richard Rumelt The Crux - Richard Rumelt Titan: The Life of John D. Rockefeller, Sr - Ron Chernow —————————————Companies MentionedAT&TCoca ColaBritish Columbia PowerMarshall-WellsPhiladelphia and Reading Walt Disney ProductionsAmerican ExpressBerkshire Hathaway—————————————More on BrettTwitter/X - @brettgardner_10LinkedIn - Brett GardnerE-mail - brett@buffettsearlyinvestments.com —————————————About the PodcastIntro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books—————————————What is Investing by the Books?Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis. Visit the website: http://www.investingbythebooks.com/Follow on Twitter/X: https://twitter.com/Investbythebook—————————————What is Redeye?Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality. Visit the website: https://www.redeye.se/Follow on Twitter/X: https://twitter.com/Redeye_—————————————DisclaimerNotice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

Simon Kold, founder of Kold Investments and former member of Novo Holdings, dives into his upcoming book, 'On the Hunt for Great Companies.' He shares insights on evaluating business quality beyond traditional metrics, emphasizing management passion and effective communication. Kold also discusses market dynamics, cyclicality in investing, and how diverse reading influences investment strategies. With a unique perspective shaped by his unconventional journey, he encourages investors to understand the nuances of demand forecasting and competitive advantages.

Moritz Sitte, an accomplished investor at Antheia AB, shares his insights on long-term investment strategies rooted in 'The Clock of the Long Now.' He discusses the importance of adopting a 10,000-year perspective, emphasizing patience and adaptability in an ever-changing world. Moritz highlights how long-term thinking can counteract common short-sightedness in finance. He also delves into business analysis, the role of workplace culture, and the delicate balance between low-cost and quality investments. His perspective offers a refreshing approach to sustainable success.

Stephen Clapham, founder of Behind the Balance Sheet and investment analyst with over 25 years of experience, shares his insights on investment strategies and training for finance professionals. He discusses his book, innovative methods for assessing undervalued companies, and the potential profit in investing with unconventional entities. Clapham emphasizes the shift in the investment landscape, the importance of re-evaluating strategies after market declines, and breaking down the skills gaps within the industry.

Torbjörn Arenbo, Chief Analyst at Danske Bank, discusses capital allocation, value creation, and managerial skills in corporate finance. Topics include different allocation practices, the obsession for growth, the three value drivers, cost of capital, and challenges in market situations.