RWH016: The Best Of The Best w/ François Rochon

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

Stig Brodersen

Business, Education, Investing

4.6 • 3.6K Ratings

🗓️ 13 November 2022

⏱️ 101 minutes

🔗️ Recording | iTunes | RSS

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Summary

IN THIS EPISODE, YOU’LL LEARN: 02:51 - How François Rochon began his market-beating investment journey three decades ago. 08:12 - How the “margin of safety” concept guides him in business, markets, & life. 10:14 - How to succeed by investing in great companies at reasonable valuations. 12:12 - Why it’s critical for investors to have a long time horizon. 15:37 - How to become a better investor by cultivating humility & preparing for disappointment. 16:48 - What he learned from Warren Buffett about the importance of owner’s earnings. 21:47 - Why François resists the temptation to overpay, even for great companies. 25:12 - Why he highlights his investment mistakes in an annual list called the Podium of Errors. 34:03 - How to survive & thrive by taking a middle-of-the-road approach to diversification. 38:30 - Why he believes that market predictions are a waste of time. 40:24 - How he handles bear markets emotionally & uses them to improve his portfolio. 43:10 - Why he loves companies like CarMax, Visa, Alphabet, & Markel. 47:56 - How the president of Constellation Software embodies everything he seeks in a leader. 53:59 - How the best businesses remind François of the beauty & uniqueness of great artworks. 1:11:24 - How he was influenced by studying & meeting investment icon Peter Lynch and what François learned from investing legend Lou Simpson. 1:21:49 - How the best investors succeed by straying from the tribe & forging their own path. 1:15:44 - How it helps him to read broadly about philosophy, art, science, history, & psychology. 1:26:16 - Why it’s rational, not naive, to be an “unwavering optimist.” 1:35:16 - Why François believes that persistence & patience are the key to human achievement. Disclaimer: Slight discrepancies in the timestamps 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. François Rochon’s Montreal-based investment firm, Giverny Capital. Giverny Capital Asset Management, his U.S.-based partnership with David Poppe. PanzaCollection of art built by Count Giuseppe Panza, one of François’ heroes. 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 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 folks, I'm absolutely delighted to introduce today's guest, François Rochon, who's
0:07.6	one of the great investors I wrote about in my book, Richard Weiser Happier.
0:11.7	François runs an investment firm in Montreal called Giverny Capital.
0:15.6	He has a superb long-term record.
0:18.5	Rochon Global, which is a portfolio of personal and family accounts that he manages, has racked
0:23.5	up annual returns of about 14% a year, over nearly 30 years.
0:29.1	To put that in perspective, he's beaten his benchmark by more than 5% a year of almost
0:34.8	three decades.
0:35.8	That's a huge margin of outperformance.
0:39.4	So this is someone we should definitely listen to when he explains how to build long-term
0:43.7	wealth in the market.
0:44.7	But you'll hear in this conversation.
0:47.2	François's success as an investor is based on one surprisingly simple principle, which
0:52.6	is that the price of a stock will eventually reflect the company's intrinsic value.
0:57.0	For a Buffett's teacher Ben Graham explained this principle by saying that in the short
1:01.7	run, the market is a voting machine, but in the long run, it's a weighing machine.
1:07.0	The trouble is, it can take a pretty long time for this process to play out, and for
1:11.3	the market to recognize a company's fair value.
1:14.6	One advantage that an investor like François has is that he's extremely patient.
1:19.3	He's perfectly happy to buy a great business at a reasonable price and then just sit on
1:23.7	it for many years and acknowledge that the market will eventually reward him.
	...

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