The Secret to Beating 'Mr. Market': A Lesson in Value Investing

Stansberry Investor Hour

Stansberry Research

America, How, To, Crash, Money, Learn, Stansberry, Income, Research, Debt, Stocks, Porter, Business, Realestate, Banking, Investment, American, Investing, Invest, Howtosave, Sjuggerud, Ferris, Eifrig, Jubilee, Buck, Sexton, Market, Bonds, Churchouse, Savings, Options, Lashmet

4.4 • 677 Ratings

🗓️ 10 April 2023

⏱️ 58 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

In this episode of the Stansberry Investor Hour, Tobias Carlisle discusses the current investment landscape and how many value investors have shifted their focus to growth stocks.

Prior to the interview, Dan discusses the concept of "Mr. Market" versus the "smart money". He cites a quote from Benjamin Graham's book Security Analysis, where he states that the stock market is a voting machine in the short term and a weighing machine in the long term. While this may be true for some companies, Dan suggests that there are many whose value doesn't change nearly as much as the stock market suggests, citing periods of sideways movement in the stock market as examples.

Then Dan and Tobias delve into the energy sector, noting the challenges of transitioning to EVs and solar. Tobias emphasizes the limitations of nuclear energy and the challenges of investing in the financial and banking sector. He prefers investing in businesses that are in a more broken-down state and cites coal companies as an example.

➡️ Watch Here

Transcript

Click on a timestamp to play from that location

0:00.0	Hello and welcome to the Stansberry Investor Hour. I'm your host, Dan Ferris. I'm also the editor of Extreme Value and the Ferris Report, both published by Stansberry Research.
0:14.8	Today we'll talk with Died in the Wool Value Investor, Tobias Carlisle. He's been on the show before. We have to check in with
0:22.0	him. We'll also talk about Mr. Market versus the smart money. And if you want to talk to us,
0:28.1	you can email us at Feedback at InvestorHour.com and tell us what's on your mind. That and more right
0:34.2	now on the Stansberry Investor Hour.
0:48.8	Mr. Market versus the smart money, what in the world am I talking about? Well, it was partially the subject of a recent Stansberryest, which I write once a week, usually on Fridays.
0:59.2	And it started because I just, I wanted to look up this one quote by the very famous value investor guru.
1:10.3	He is known for his tutledge of Warren Buffett, among other things,
1:17.6	Benjamin Graham, right, very famous, the guy who basically gave birth to value investing.
1:24.0	And I wanted to look up this one quote because it is very often that people will say,
1:30.4	you know, Ben Graham said the stock market is a voting machine in the short term and a weighing
1:34.3	machine in the long term.
1:36.8	And I hadn't read this part of the book in many years.
1:40.7	And the book is security analysis.
1:42.4	It was first published in 1934.
1:46.0	And I went and looked it up and I thought I really should get the quote from the original source. And it doesn't say
1:50.5	anything like that. In fact, I'll read you the quote and then we'll talk about it. It says this.
1:57.8	In other words, the market is not a weighing machine on which the value of each issue is recorded by an exact and impersonal mechanism in accordance with its specific qualities.
2:11.6	Rather, should we say that the market is a voting machine where on countless individuals register choices,
2:18.8	which are the product partly of reason and partly of emotion.
2:21.8	So he says it.
2:22.6	The market is not a weighing machine.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Stansberry Research, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Stansberry Research and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.