TIP544: Life-Changing Returns in Cyclicals & Spinoffs

  • Thread starter We Study Billionaires - The Investor’s Podcast
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We Study Billionaires - The Investor’s Podcast

Guest
On today’s episode, Clay continues his review of Gautam Baid’s book, The Joys of Compounding. Today’s episode is part 3 of our review of this incredible book.

Gautam Baid is the Managing Partner and Fund Manager of Stellar Wealth Partners India Fund, a Delaware-based investment partnership which is available to accredited investors in the US. The fund is modeled after the Buffett Partnership fee structure and invests in listed Indian equities with a long-term, fundamental, and value-oriented approach.



IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

02:15 - How journaling can make us better investors.

07:00 - Why incentives are at the root of all human behavior.

09:22 - How management incentives impact our long-term returns as investors in businesses.

18:15 - Why being directionally right is more important than being precise in assessing the intrinsic value of a business.

25:37 - How maintenance capex impacts the value of a business.

32:14 - Ways in which value investors fall for value traps.

32:45 - Why we as investors should respect the market’s wisdom for pricing stocks.

35:09 - The three most important words of investing.

41:25 - How high-quality businesses enhance our margin of safety.

47:55 - How one commodity investment catapulted Gautam to nearly achieving financial independence.

53:36 - Why Seth Klarman, Peter Lynch, and Joel Greenblatt consider spinoffs to be ripe hunting grounds for investors.

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



BOOKS AND RESOURCES




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