On today’s episode, Kyle shares the lessons he learned from reading What I Learned About Investing From Darwin by Pulak Prasad.
The book is authored by Pulak Prasad, an investor out of India who helps run Nalanda Capital. From 2007 to 2022, they compounded their capital at 19% per annum turning 1 rupee into 13.8 rupees during that time sample!! But more important than their track record is the unique ways they run their fund.
The book illuminates 3 key principles that Nalanda uses for its investing framework:
1. Avoid big risks.
2. Buy high-quality at a fair price.
3. Don’t be lazy – be very lazy.
To help readers understand why he invests this way he dives deep into many of Darwin’s principles to help you understand their potential power in investing.
IN THIS EPISODE, YOU’LL LEARN:
00:00 - Intro
20:26 - What a cheetah can teach you about risk
24:33 - Why you should be more focused on risk than returns
25:40 - How things in nature and investing mostly stay the same
27:42 - Some interesting data on why great companies remain great, and poor companies remain mediocre
28:29 - What a Russian scientist can teach us about the power of focusing on one investing metric to help identify wonderful businesses
34:58 - The importance of robustness in nature, and why you should search for the same attribute in business
37:00 - How to identify businesses that can evolve in a fast-changing world and remain on top
43:01 - What guppies can teach us about honest and dishonest signaling
46:06 - Why we should prioritize the past over making bold predictions
48:11 - How to invest without ever doing a discounted cash flow ever again
51:05 - What bear teeth and finches can teach us about the importance of avoiding noise
55:20 - How to use the presence of noise as an opportunity to outperform
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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