TIP661: Betting Big on China & Lessons from Bear Markets w/ Richard Lawrence

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We Study Billionaires - The Investor’s Podcast

Guest
On today’s episode, Clay is joined by Richard Lawrence. Richard is the Founder and Executive Chairman of Overlook Investments, a leading value-oriented investment firm in Asia that he founded in 1991.

Over a 30-year time period, Overlook compounded capital at 14.3% per year — a remarkable record of growth that is a testament to their consistent ability to find and invest in Asia’s best companies.



IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

01:53 - Why the 1980s was the most transformative period in Asia’s history.

04:03 - Key lessons that Richard learned from his father, who owned an investment firm in New York.

07:10 - Why Richard prefers to invest in the most simple businesses.

12:23 - What Richard learned from having his apartment ransacked after publicly calling out a management team his firm invested in.

13:17 - What was happening during the Asian financial crisis that made it an economic nightmare for businesses all throughout Asia?

22:33 - Why Richard regrets ever listening to Buffett’s advice on ignoring the broader macro environment when investing in great companies.

23:51 - How Richard helped Taiwan Semiconductor improve their capital allocation decisions.

38:55 - Why Richard generally prefers dividends over share buybacks.

42:24 - What led Richard to recommend TSMC’s stock to Warren Buffett?

44:33 - Why Overlook has started to bet big on China.

50:49 - Richard’s view on the current macro situation in China.

58:55 - The biggest misconceptions that US investors have with respect to China.

01:00:35 - How Jeremy Grantham influenced Richard to be more mindful about the environmental risks that lie ahead

And so much more!



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



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