RWH020: The Disciplined Growth Investor w/ Fred Martin

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

Stig Brodersen

Business, Education, Investing

4.6 • 3.6K Ratings

🗓️ 8 January 2023

⏱️ 123 minutes

🔗️ Recording | iTunes | RSS

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Summary

IN THIS EPISODE, YOU’LL LEARN: 00:00 - Intro 10:14 - What Fred Martin discovered about mitigating risk as a Navy officer in the Vietnam War. 14:22 - How he handles the pain & discomfort of difficult periods in the stock market. 31:52 - Why he thinks Tesla’s stock is overvalued & what he thinks it’s really worth. 35:20 - Why it’s critical for investors to be skeptics who never let down their guard. 43:56 - What insights he drew from studying Benjamin Graham & writing a book about him. 51:44 - How Fred applies a consistent three-step process to every business he analyzes. 54:34 - How to win as an investor by waiting for intrinsic value & the stock price to “true up.” 01:02:25 - Why he regards a legendary free soloist climber as the world’s greatest risk manager. 01:11:43 - How flying planes has helped Fred to refine his understanding of the margin of safety. 01:16:02 - Why he’s given three younger colleagues the authority to veto his stock picks. 01:24:26 - Why he “seals the exits” before buying a stock, assuming that he’ll own it forever. 01:34:29 - Why fund managers should sacrifice their own interests for the sake of their clients. 01:37:56 - What advice he’d give to people who are looking to hire an investment adviser. 01:42:09 - Why he believes that relationships & purpose are the two most important things in life. 01:45:48 - What he’s done to build good health, so that he’s still going strong at age 76. 01:47:24 - How his religious faith has made him a better investor & a better steward of assets. 01:50:10 - What he’s learned about how to endure sorrow & tragedy. 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. Fred Martin’s investment firm, Disciplined Growth Investors. Fred Martin’s mutual fund, the Disciplined Growth Investors Fund. Benjamin Graham and the Power of Growth Stocks, co-authored by Fred Martin The Psychology of Money: An Investment Manager’s Guide to Beating the Market by Jim Ware Free Solo, an Oscar-winning documentary about legendary climber Alex Honnold. 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 there, in my book, Richard Weisshappier, I wrote a chapter titled Don't Be a Fool,
0:08.8	which is all about Charlie Munger's strategy of consciously and systematically reducing
0:14.2	what he calls standard stupidities and foolish thinking and idiotic behaviour.
0:20.5	Charlie, who recently celebrated his 99th birthday once said that all you have to do to get
0:26.6	a head in life is to be non-ideotic and live a long time.
0:31.8	I don't know if that's entirely true, but I think there's great wisdom in this idea
0:36.4	that one of the keys to long-term success is simply the ability to avoid making too many
0:42.0	dumb mistakes, especially mistakes that have the potential for catastrophic consequences.
0:48.7	This subject of avoiding costly or calamitous mistakes is a central theme in today's episode
0:54.8	of The Podcast.
0:56.5	My guest is Fred Martin, a great investor who I also wrote about in that same chapter
1:01.8	of my book.
1:03.4	Fred is the lead portfolio manager at an investment firm called Disciplined Growth Investors.
1:09.7	Since he founded the company in 1997, he's been the market by a mile while focusing
1:15.6	on two relatively racy sectors, small and mid-sized growth stocks.
1:21.4	For me, what's striking about Fred is not just his long history of superb investment
1:26.5	returns, it's that he also has a remarkable gift for managing risk.
1:31.6	He's 76 years old and has now been investing successfully for half a century.
1:37.6	During that time he's encountered countless minefields, including financial crises,
1:43.4	periods of soaring inflation, recessions, wars, stock market bubbles, and some pretty
1:49.7	brutal bear markets, yet he's survived and prospered through it all.
	...

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