RWH013: Move Slow, Win Big W/ Thomas Russo

The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 18 September 2022

⏱️ 103 minutes

🔗️ Recording | iTunes | RSS

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Summary

IN THIS EPISODE, YOU’LL LEARN: 02:17 - What Tom Russo learned from a life-changing encounter with Warren Buffett in 1982. 09:53 - Why “agency” cost is one of the greatest risks facing all investors. 14:02 - Why Tom favors companies that willingly endure pain today for gain tomorrow. 16:02 - How he rode Berkshire Hathaway from $900 to more than $430,000 per share. 21:08 - Why Buffett’s team of successors should do fine when Berkshire is in their hands. 27:17 - What Tom learned while working for investment legend Bill Ruane. 38:16 - Why Tom immediately sold Wells Fargo & Altria after realizing they’d lost their way. 48:46 - Why Tom loves brands where consumers believe there’s “no adequate substitute.” 53:39 - Why Tom is bullish about Heineken’s long-term future, even after owning it for 36 years. 01:07:08 - How Tom succeeds by resisting short-term temptations & deferring gratification. 01:16:09 - What Tom failed to understand about Alibaba & the political risks of investing in China. 01:23:11 - How Tom thinks about moral questions like whether it’s okay to own tobacco stocks. 01:25:51 - How innovators like Nestlé & Heineken are helping to combat climate change. 01:35:13 - How Tom’s investment success is fueled by his insatiable curiosity. 01:37:41 - What Tom learned from Charlie Munger about the importance of trusting your gut. *Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members. Thomas Russo’s 2018 Google Talk on “Global Value Investing.” Warren Buffett discusses Bill Ruane, who ran the Sequoia Fund & helped train Tom Russo. William Green’s book, “Richer, Wiser, Happier” – read the reviews of this book. William Green’s Twitter. NEW TO THE SHOW? Check out our We Study Billionaires Starter Packs. Browse through all our episodes (complete with transcripts) here. Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Bluehost Fintool PrizePicks Vanta Onramp SimpleMining Fundrise TurboTax HELP US OUT! Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

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0:00.0	You're listening to TIP.
0:02.9	Hi there, my guest today is Thomas Russo, a renowned global investor who's beaten the market
0:08.1	by an enormous margin over the last four decades.
0:11.9	As I wrote in my book, Richard Weisshappier, Tom is the ultimate long-term investor.
0:17.6	His biggest holdings include several stocks that he's owned since the 1980s, including
0:22.6	Nestle, Heineken and Berkshire Hathaway, which is written up from around $900 per share
0:28.5	to more than $430,000 per share over the last 40 years.
0:33.3	As you'll hear in this conversation, Tom's firm has gradually built a stake in Berkshire
0:37.9	that's now worth about $1.4 billion.
0:41.4	I first interviewed Tom about eight years ago, back when he was 59 years old.
0:46.7	During that interview, I asked him if he expected to own Berkshire and Nestle for the rest
0:51.2	of his life.
0:52.6	Without a moment's hesitation, Tom replied, yeah, I would think so.
0:56.5	In a market that's filled with trigger-happy speculators who trade their investments hyper
1:01.7	actively, Tom is a true outlier.
1:04.9	As I see it, his supremely patient long-term mindset is a huge competitive advantage in
1:11.3	a world that's increasingly short-term and impulsive.
1:15.4	In this conversation, Tom explains the key investment principles that have driven his
1:20.2	enduring success.
1:21.6	He also talks about what he's learned from three legendary investors, Warren Buffett, Charlie
1:26.6	Munger, and Bill Ruane, who racked up incredible returns over decades for the Sequoia fund
1:32.3	and helped to train Tom back when he was a young investor.
	...

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