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Afford Anything

The Case for Investing in Individual Stocks, with Co-Founder of the Motley Fool, David Gardner

Afford Anything

Paula Pant | Cumulus Podcast Network

Investing, Business, Entrepreneurship

4.63.4K Ratings

🗓️ 12 September 2025

⏱️ 91 minutes

🧾️ Download transcript

Summary

#642: Curious about how individual stock picking could sharpen your investing skills—even if you’re an avid index fund investor? Paula sits down with David Gardner, co-founder of The Motley Fool and author of Rule Breaker Investing, to delve into the world of contrarian stock strategies and the mindset behind picking standout companies. Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths. (0:00) Sports team investing analogy (4:20) Individual stocks vs index funds (7:12) Values-based investing approach (13:16) Starbucks pick criteria (13:28) Six rule breaker traits (20:41) Why overvalued works (26:44) Market timing philosophy (32:20) Traditional metrics miss key factors (39:18) When to sell stocks (45:26) Winners vs losers math (48:32) Portfolio allocation rules (55:10) Sleep number concept (1:00:00) Adding to winners strategy (1:05:16) Evaluating unfamiliar companies (1:09:15) Dot-com bubble lessons (1:16:24) AI investing parallels (1:20:18) Sports betting critique Resource: David Gardner's book: Rule Breaker Investing: How to Pick the Best Stocks of the Future and Build Lasting Wealth Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0

Today we sit down with David Gardner, the co-founder of The Motley Fool and the author of Rule Breaker

0:05.3

investing for a deep dive into individual stock picking. Now, I know that we are, as afforders,

0:11.6

we are dedicated index fund investors, which is the overwhelming bulk of my portfolio outside

0:17.8

of real estate. Real estate index funds. That's what I invest in. That's what I

0:21.4

teach. But it's fun to dabble just a little in individual stocks. And the insights that you

0:29.8

develop when you evaluate individual stocks, those insights create transferable skills that apply to

0:36.6

all investors. In this interview, we talk about

0:39.4

David's contrarian approach. He actually looks for companies that are overvalued. He talks

0:45.0

about why, if everybody else thinks that a company is too expensive, he's interested. He talks about

0:50.1

his six traits of rule breaker stocks. And he emphasizes qualitative over quantitative

0:55.6

analysis. He looks at leadership, innovation, corporate culture, things that don't show up

0:59.5

in traditional financial metrics. So even if you never buy an individual stock,

1:04.4

understanding these concepts can help you be a better entrepreneur, be a better employee

1:09.2

in your own company. It can round out your

1:11.7

understanding of business. Now, if you're not familiar with the Motley Fool, they are a legend

1:17.1

online. They started in the early 90s, and since then they have provided millions of people

1:22.5

with investing advice. They're a private company with over 300 employees, and because they've been around

1:29.4

since the early 90s, their advice has stood the test of time. They've survived 9-11, the dot-com burst,

1:36.4

the Great Recession. They have withstood all of these tremendous financial calamities to bring

1:42.2

investing education to the public. Welcome to the Afford

1:46.2

Anything Podcast, the show that knows you can afford anything, not everything. This show covers

1:50.7

five pillars, financial psychology, increasing your income, investing real estate and entrepreneurship.

...

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