RWH017: Fidelity Legend Joel Tillinghast

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

Stig Brodersen

Business, Education, Investing

4.6 • 3.6K Ratings

🗓️ 27 November 2022

⏱️ 97 minutes

🔗️ Recording | iTunes | RSS

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Summary

IN THIS EPISODE, YOU’LL LEARN: 03:07 - How Joel Tillinghast fell in love with investing as a boy of eight or nine. 07:51 - What he learned from his first investment, which he’s (so far) held for 54 years. 09:12 - Why it’s critical not to overpay, even when you’re investing in a superb business. 11:04 - How his approach differs from the strategy of another Fidelity legend, Will Danoff. 14:55 - What Joel admires about Cathie Wood. 19:20 - What he learned from a disastrous macroeconomic bet using borrowed money. 33:36 - Why it’s important to invest in “adaptive companies.” 34:50 - How he was hired at Fidelity after cold calling Peter Lynch. 39:56 - How young people can break into the investment business at a firm like Fidelity. 44:59 - What qualities made Peter Lynch a wildly successful stock picker. 53:38 - Why Joel avoids biotech stocks. 54:25 - Why it’s critical to know yourself & stick to games where you truly have an edge. 56:47 - How he thinks about diversification & why he owns a huge number of stocks. 1:11:07 - How he made more than 1,000 times his money investing in Monster Beverage. 1:10:08 - How emotional exhaustion led him to announce his retirement next year. 1:23:12 - How he was affected by a terrifying experience of an earthquake in Japan. 1:27:21 - How to handle adversity by letting go of what we can’t control. 1:29:26 - What he’s trying to teach Fidelity’s next generation of fund managers. 1:32:27 - What gives Joel satisfaction as he looks back on his extraordinary career. 1:35:24 - What he learned from his beloved father. 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. Joel Tillinghast’s Fidelity Low-Priced Stock Fund. Joel’s book, Big Money Thinks Small: Biases, Blind Spots, & Smarter Investing. 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: River Toyota Sun Life The Bitcoin Way Range Rover Sound Advisory BAM Capital Fidelity SimpleMining Briggs & Riley Public Shopify 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, I'm really happy to introduce the legendary Joel Tillinghast, who's our guest
0:07.8	on today's episode of the podcast.
0:10.2	Joel is one of the undisputed giants of the investing world.
0:13.9	Peter Lynch, who hired him at Fidelity in the 1980s, has described Joel as one of the
0:18.7	greatest, most successful stockpickers of all time.
0:23.0	Joel became the manager of Fidelity's low-price stock fund back in 1989, and he still manages
0:29.0	it to this day.
0:30.9	Over 33 years, he's racked up a spectacular record, beating his benchmark index by about
0:37.1	3.7% points a year.
0:39.6	As I'm sure you know, it's extremely rare to beat the market by such a wide margin over
0:45.1	decades, but it's even harder to outperform when you manage an enormous amount of money
0:50.1	like Joel, who has something like $70 billion of assets under management.
0:54.9	He also has the most diversified portfolio of any great investor I've ever interviewed.
1:00.3	He currently owns about 880 stocks, whereas most of the best investors tend to be relatively
1:06.6	concentrated in a small number of stocks.
1:09.6	So in multiple ways, he's a total outlier.
1:13.2	Peter Lynch has said that he's amazed by Joel's almost unwirably ability to consume
1:18.7	mountains of information, about hundreds of companies at a time, analyze it, distill it, and
1:24.7	use it to find long-term winners while avoiding many of the losers.
1:29.0	I think Lynch is onto something really important here.
1:31.4	It's not just that Joel is great at picking winners like Monster Beverage, which has gone
	...

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