RWH049: Crushing The Market Over 50 Years w/ Jay Bowen

We Study Billionaires - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 1 September 2024

⏱️ 131 minutes

🔗️ Recording | iTunes | RSS

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Summary

In this episode, William Green chats with Harold J. (“Jay”) Bowen III, President & CIO of Bowen, Hanes & Company. Jay & his late father generated dazzling returns for their biggest client, the Tampa Firefighters’ & Police Officers’ Pension Fund. The fund’s stock portfolio has achieved an annualized return of 14.4% over 50 years & a cumulative return of more than 81,000%. Here, Jay explains how they pulled this off, sharing one of the great untold stories of the investment world. IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 08:37 - What makes the Tampa Firefighters’ & Police Officers’ Pension Fund special. 17:54 - How Jay Bowen’s father came to run the fund half a century ago. 29:09 - How to thrive by slashing fees, shunning consultants, & thinking long term. 38:54 - Why Jay takes a top-down thematic investment approach. 43:03 - How the fund made a fortune buying Coca-Cola before Buffett. 47:15 - Why it pays to bet on extraordinary CEOs. 51:09 - Why truly long-term investors shouldn’t bother with bonds. 1:05:31 - How Jay is positioned to profit from the Fourth Industrial Revolution. 1:10:27 - How he thinks about pricey stocks like Nvidia & Costco. 1:14:29 - How he invests in smaller companies he sees as future blue chips. 1:18:06 - Why he’s obsessed with the Federal Reserve. 1:22:16 - How to invest successfully in times of market mayhem. 1:37:58 - How being an endurance athlete has helped Jay as an investor. 1:53:58 - How he structures his days to optimize performance. Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Jay Bowen’s investment firm, Bowen, Hanes & Company. Links to Jay Bowen’s media appearances. William Green’s podcast episode with Fred Martin | YouTube Video. William Green’s podcast episode with Bob Robotti | YouTube Video. William Green’s book, “Richer, Wiser, Happier” – read the reviews. Follow William Green on X. Check out all the books mentioned and discussed in our podcast episodes here. Enjoy ad-free episodes when you subscribe to our Premium Feed. NEW TO THE SHOW? Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members. Follow our official social media accounts: X (Twitter) | LinkedIn | | Instagram | Facebook | TikTok. 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 Range Rover Vacasa AT&T The Bitcoin Way USPS American Express Onramp Found SimpleMining Public Shopify 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! 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.
0:03.0	Hi there, welcome back to the Richer Weiser Happier Podcast.
0:06.0	Our guest today is a superb investor named Harold J. Bowen the third, or Jay for short.
0:13.0	Jay runs an investment firm called Bowen Haynesen Company,
0:16.5	which was founded over 50 years ago by his late father.
0:20.3	Jay joined the company right out of college back in the 1980s and has been in charge of it now for more than a quarter of a century.
0:27.0	In today's episode he's going to share with us one of the great untold success stories of the investing world.
0:33.4	This is the story of how he and his father beat the market by an enormous margin
0:38.6	over the last half century.
0:40.8	Back in 1974, Jay's father took over the management of a tiny pension fund that had been created
0:47.3	on behalf of the firefighters and police officers of Tampa, Florida.
0:52.1	In those days, the Fund's assets under management amounted to barely $12 million.
0:58.0	Since then, thanks to the investing prowess of Jay and his father,
1:02.0	the Fund has grown to 3.1 billion dollars in assets,
1:06.4	and that's after paying out something like 1.8 billion dollars to bankroll the retirements
1:11.4	of thousands of police officers and firefighters.
1:14.7	How successful has this great father and son team been?
1:18.8	Well, the Tampa Fund has achieved an annualized return of about 11.7% over half A
1:25.0	P5per Fund has achieved an annualized return of about 11.7% over half a century by investing in a mix of stocks for capital
1:28.7	appreciation and bonds for income and stability.
1:32.0	Those returns are certainly impressive in their own right,
1:35.0	but when you zero in on their stock portfolio,
	...

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