Investing by the Books

In this episode, we speak with none other than Adam Seessel. Adam started as a journalist before venturing into finance through a job at Wall Street. He is the author of ‘Where the Money Is’ and the founder of Gravity Capital Management. Our conversation focuses on his approach to value investing, which draws upon classical concepts and updates them to fit the digital businesses of today.For more info about the podcast, go to the episode page and make sure to follow us on 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 team This episode was recorded on December 12, 2022.—————————————Episode Chapters(00:00) Intro by Eddie & Niklas(02:44) How Adam got started with investing (04:18) Why write another book on value investing? (09:01) The evolution of value investing(16:32) The metrics that are relevant in digital businesses(24:28) Skepticism towards growth and momentum investing(26:30) How to evaluate the quality of a digital company(31:34) Are network effects overrated? (34:57) Brands as the weakest competitive advantage(40:46) Business quality is the most important aspect (42:47) Why DCFs don’t work (47:11) How to allocate your time between evaluating price and quality(53:05) Why Adam started Gravity Capital Management (01:00:21) The most costly cognitive biases (01:02:19) Thoughts on books —————————————Books MentionedWhere the Money Is - Adam Seessel —————————————Companies MentionedEvolutionAmazonApple MetaYahooNetflix—————————————More on AdamLinkedIn—————————————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: 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: 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

Carter Johnson, manager of MCJ Capital Partners, discusses the book 'Distant Force' about Teledyne's success as a serial acquirer. They cover topics like dividend policies, working with incentives, and understanding serial acquirers. Carter also talks about MCJ Capital Partners and the importance of reinvestment opportunities. They share unique book recommendations for investors.

Matt Joass is the Founder and CIO at Maven Funds Management. Matt previously worked as a financial analyst at a large international shipping firm and has co-founded the Copenhagen Investment Club. The focal point for our conversation is the book Superforecasting, and we cover everything from thinking in probabilities to good fiction books. We welcome all suggestions of interesting authors, books, investors, and voracious readers. For more info about the podcast, go to the episode page and follow us on Twitter. This episode was recorded on November 2, 2022.—————————————Episode Chapters(00:00) Intro by Eddie & Niklas (01:10) How Matt got interested in investing(03:51) Superforecasting(07:02) Why are people bad forecasters? (10:04) Improving investing through forecasting (12:35) Critique against forecasting(16:58) The ten commandments (25:04) Maven Fund Management (29:46) A walk-through of a case (34:22) Thinking in probabilities rather than certainties (37:48) Breaking things down into smaller pieces(43:22) Growth mindset vs fixed mindset (46:11) Matt’s most common cognitive biases (49:56) System for identifying mistakes (53:37) Book discussions(01:00:17) Final remarks —————————————Books MentionedSuperforecasting - Dan Gardner and Philip TetlockRich Dad Poor Dad - Robert KiyosakiHow Buffett Does It - James Pardoe Snowball - Alice Schroeder A Thousand Brains - Jeff HawkinsThe Talent Code - Daniel Coyle Deep Survival - Laurence GonzalesThe Tao Jones Averages - Bennett W. Goodspeed Rainbows End - Vernor Vinge—————————————Companies MentionedCogstate—————————————More on MattMatt’s TwitterMatt’s LinkedInMattjoass.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: 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: 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

Derek Lidow holds a PhD in applied physics, has been the CEO of a large public semiconductor company, and has started a business that he sold for $100 million. He is a professor of entrepreneurship at Princeton University and has written three books on the topic. In this episode, we discuss his latest title, The Entrepreneurs. We also ponder big questions, such as whether or not you should drop out of school to start a company. We welcome all suggestions of interesting authors, books, investors, and voracious readers. For more info about the podcast, go to the episode page and follow us on Twitter. This episode was recorded on October 17, 2022.—————————————Episode Chapters(00:00) Intro by Eddie & Niklas (03:31) How Derek’s passion for business started(10:39) Do you have to risk it all to win big? (23:47)The world’s first entrepreneur(27:43) A copper-age analog to Silicon Valley (30:57) Cornelius Vanderbilt (39:33) J P Morgan (42:03) Venture capital funding electronics(44:27) Scaling demand(51:27) Slavery scaled (57:36) Punish bad behavior or reward good? (01:09:17) Dealing with short-termism(01:11:51) Should you drop out of school to start a company? (01:17:02) Sam Walton > Elon Musk (01:19:52) John Patterson(01:23:12) Book Recommendations—————————————Books MentionedThe Entrepreneurs - Derek Lidow Startup Leadership - Derek LidowBuilding on Bedrock - Derek LidowFour Steps to the Epiphany - Steve BlankThe Startups Owner’s Manual - Steve BlankMaking Sense of Field Research - Sheila Pontis Communicating Knowledge Visually - Sheila Pontis—————————————More on DerekDereklidow.comDerek’s TwitterDerek’s LinkedIn—————————————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: 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: 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

Vishal Khandelwal, author and former equity analyst, discusses his book 'The Sketchbook of Wisdom' and the lessons it offers. Topics covered include habits for shutting out noise, thoughts on re-reading books, and the philosophy of Ikigai. They also explore prerequisites for becoming a full-time investor, dealing with bear markets, and portfolio allocation. Additionally, they touch on Vishal's latest investing mistake and habits for shutting out noise.

Adam Mead is the CEO and CIO at Mead Capital Management and author of 'The Complete Financial History of Berkshire Hathaway'. The book sits at 700+ pages, making it one of the most comprehensive accounts of Warren Buffett’s creation to date. In the episode, we discuss successful capital allocation, accounting as the language of business, and why Berkshire should not be split up.We welcome all suggestions of interesting authors, books, investors, and voracious readers. For more info about the podcast, go to the episode page and follow us on Twitter. This episode was recorded on September 7, 2022.—————————————Episode Chapters(00:00) Intro by Eddie (00:23) Introduction to Adam (04:24) How the book came about(09:18) Interesting lessons from writing the book(16:08) Patience is a virtue (17:49) Growth CapEx vs Maintenance CapEx(26:52) The main sources of growth during the formative years(28:40) The acquisitions that “moved the needle”(34:57) Why Berkshire shouldn’t be split up(40:19) Lessons on inflation(43:30) Adam’s personal career(45:13) An investor’s habits (56:42) Adam’s cognitive biases(59:06) The language of business (01:10:44) Book recommendations—————————————Books MentionedThe Complete Financial History of Berkshire Hathaway - Adam MeadThe Warren Buffett Way - Robert HagstromPoor Charlie’s Almanack - Peter KaufmanSeeking Wisdom - Peter BevelinLeonardo da Vinci - Walter IsaacsonManias, Panics, and Crashes - Charles Kindleberger—————————————Companies MentionedBerkshire HathawayNational Indemnity GeicoAppleThe Washington PostScott Fetzer Berkshire Hathaway EnergyBNSFSee’s Candies Markel Capital Alleghany CorporationFairfaxBoston Beer CompanyHeineken Anheuser-Busch InbevJack Henry Fastenal —————————————More on Adam Mead Capital Management - https://meadcm.com/The Oracle’s Classroom - https://theoraclesclassroom.com/Twitter - https://twitter.com/BRK_StudentBook recommendations - https://theoraclesclassroom.com/books/Watchlist Investing (10% discount with code Redeye) - https://watchlistinvesting.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: 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: 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

Christian Billinger is the chairman of Billinger Förvaltning, a privately held investment company focused on owning high-quality businesses. For this episode, Christian has selected Terry Smith’s great book Investing for Growth. Our conversation covers a wide array of fascinating topics including market timing, traits of a successful investor, and how to go about selling a stock.We welcome all suggestions of interesting authors, books, investors, and voracious readers. For more info about the podcast, go to the episode page and follow us on Twitter. This episode was recorded on August 17, 2022.—————————————Episode Chapters(00:00) Intro by Eddie & Niklas (01:34) How Christian’s passion for investing started(02:40) Introduction to Investing for Growth and Terry Smith (07:33) Highlights of the book(09:40) Why low volatility stocks sometimes generate the highest return(11:19) Timing the market(12:40) The importance of return on capital for value creation(13:38) When diversification becomes unnecessary(15:11) How much to pay for high quality (17:33) Three Steps to Heaven(18:59) Terry Smith vs Warren Buffett(26:32) Investing lessons from Tour de France(29:01) Critique against value investing (and special situations)(31:12) The Art of Selling(39:22) When to buy high-quality companies cheap(42:52) Traits of a successful investor (49:38) Christian’s best investment and the lessons from it(54:09) Book recommendations(56:52) Final remarks—————————————Books MentionedInvesting for Growth - Terry Smith Quality Investing - Lawrence CunninghamCapital Returns - Edward Chancellor —————————————Companies MentionedTCI (Tele-Communications Inc)AKO Capital FundsmithTesco IBMBerkshire Hathaway Markel Capital Lindsell TrainKimberly-ClarkSGSDomino’s PizzaMeta PaypalDiageoDavide Campari Rémy CointreauLVMH Hermès—————————————More on ChristianBillinger Förvaltning: https://www.billingerforvaltning.se/ LinkedIn - https://www.linkedin.com/in/christian-billinger-41688087/ —————————————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: 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: 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

Gautam Baid is the Managing Partner and Fund Manager at Stellar Wealth Partners and author of The Joys of Compounding. He has previously worked as a portfolio manager at Summit Global Investments and as a senior analyst at Citigroup and Deutsche Bank. During our wide-ranging conversation, we discuss Gautam’s investment philosophy, common misconceptions among investors, and typical traits of a high-quality business. We welcome all suggestions of interesting authors, books, investors, and voracious readers. For more info about the podcast, go to the episode page and follow us on Twitter. This episode was recorded on August 5, 2022.—————————————Episode Chapters(00:00) Intro by Eddie & Niklas(04:31) Why and how The Joys of Compounding came about(07:08) When compounding works against you(09:02) Why value investing has endured for so long(10:11) The importance of financial independence (12:18) Gautam's investment philosophy(20:22) Traits of a high-quality business(22:36) Common misconceptions among investors (24:31) How to behave in bear markets(26:55) Thoughts on portfolio allocation(28:42) Advice for aspiring fund managers (33:01) The fee structure in Gautam’s fund (36:43) Why invest in India?(44:21) How to evaluate corporate governance (47:53) Investing in developing versus emerging countries(49:19) The two themes of Stellar Wealth Partners(52:15) Gautam's reading habits and book recommendations—————————————Books MentionedThe Joys of Compounding - Gautam BaidA Random Walk Down Wall Street - Burton MalkielInvesting for Growth - Terry SmithMastering the Market Cycle - Howard MarksYou Can Be a Stock Market Genius - Joel GreenblattMore Than You Know - Michael Mauboussin Seeking Wisdom - Peter BevelinAll I Want to Know is where I'm Going to Die So I'll Never Go There - Peter BevelinCommon Stocks and Uncommon Profits - Philip Fisher—————————————More on Gautam BaidThe Joys of Compounding: https://www.thejoysofcompounding.com/Stellar Wealth India: https://stellarwealthindia.com/LinkedIn: https://www.linkedin.com/in/gautam-baid-cfa-b40b7110/ Twitter: https://twitter.com/Gautam__Baid—————————————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: 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: 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

Will Thorndike is the co-founder of Housatonic Partners and host of the 50X podcast. In this episode, we discuss Will’s masterpiece “The Outsiders” and the lessons he brings from writing it. The book covers eight CEOs who excelled at capital allocation and describes the strategies underlying their success. "The Outsiders" was published ten years ago, and recommended by Warren Buffett in his 2012 annual shareholder letter.We welcome all suggestions of interesting authors, books, investors, and voracious readers. For more info about the podcast, go to the episode page and follow us on Twitter. This episode was recorded on August 17, 2022.—————————————Episode Chapters (00:00) Intro by Eddie & Niklas(03:16) How Will’s passion for investing started(08:13) Common traits of the outsiders(19:49) Holding on to high-quality companies(26:06) The importance of corporate culture(34:49) When M&A becomes value-destroying(38:53) How to think about share issues(41:41) How to find outsider CEOs(50:19) The outsiders of tomorrow(56:03) Thoughts on valuation(1:02:39) Book recommendations—————————————Books Mentioned Money Masters of Our Time - John Train Sam Walton: Made in America - Sam WaltonShoe Dog - Phil Knight Fortune’s Formula - William Poundstone Buffett: The Making of an American Capitalist - Roger Lowenstein The Snowball - Alice SchroederYou Can Be a Stock Market Genius - Joel GreenblattThe Warren Buffett Portfolio - Robert HagstromElusive - Frank Close —————————————Companies MentionedCapital Cities BroadcastingTeledyneGeneral Dynamics TCI The Washington PostRalston Purina General CinemaBerkshire HathawayDanaherProsus Arch Reinsurance RCI Hospitality Constellation Software Brookfield Asset ManagementLifco—————————————More on Will Thorndike 50X Podcast - Will's podcast where he discusses and dissects extraordinary investments—————————————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: 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: 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

Mark Mahaney calls himself “Wall Street’s oldest and longest-lasting technology analyst”. We learn about Mark's lessons for successful tech investing, his passion for the analyst job, and the quality of the big tech companies of today, including Meta and Spotify.We welcome all suggestions of interesting authors, books, investors, and voracious readers. For more info about the podcast, go to the episode page and follow us on Twitter. This episode was recorded on August 11, 2022.—————————————Episode Chapters(00:00) Intro by Eddie & Niklas(02:02) Mark’s story(06:58) Writing Nothing But Net(09:29) Dislocated High-Quality Stocks (DHQs)(14:15) The value of premium growth(23:47) Winning management traits(28:00) Employees as an advantage(31:20) Losing networks effects (34:17) Companies with optionalities(36:41) Duration of tech businesses(38:26) TikTok and engagement data(41:22) The three roles of an equity analyst(45:46) The investor perspective(50;28) Sleuthing and customer surveys(59:38) Spotify & Meta = DHQs?(1:07:31) Company specific vs Macro issues(1:10:02) Top books—————————————Books MentionedNothing But Net - Mark MahaneyOne Up on Wall Street - Peter LynchThe Smartest Guys in the Room - Bethany McLeanNo Rules Rules - Reed Hastings & Erin MeyerThe Sleuth Investor - Avner MandelmanThe Black Swan - Nassim Nicholas TalebFreakonomics - Steven Levitt & Stephen J. Dubner—————————————Companies Mentioned (in order of first appearance)Groupon NetflixAmazonUberAppleWarby ParkerAirbnbEnron SpotifyGoogleeBayGrubhubMetaYahoo!AOLTikTokDoorDashStitch FixBlue ApronSnap1stDibsZulilyWixShopifyLyft—————————————More on Mark MahaneyTwitter: https://twitter.com/markmahaneyWebsite: https://www.marksfmahaney.com/book—————————————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: 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: 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