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

TIP487: Warren Buffett’s 12 Investment Principles (with a Case Study)

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

Stig Brodersen

Business, Education, Investing

4.63.6K Ratings

🗓️ 25 October 2022

⏱️ 65 minutes

🧾️ Download transcript

Summary

IN THIS EPISODE, YOU'LL LEARN: 02:30 - What Warren Buffett’s 12 investment principles are. 08:26 - Why Buffett has largely avoided technology companies over his career. 14:07 - Why Buffett loves companies that repurchase shares. 28:32 - Tips that Buffett shares to help us assess a management team. 31:02 - How to calculate the intrinsic value of a company. 37:50 - Why investing psychology is critical to understand. 51:36 -How Coca-Cola fit perfectly into these 12 principles.  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. Clay’s previous episode covering How Warren Buffett Became the Greatest Investor to Ever Live. Robert Hagstrom’s book - The Warren Buffett Way. Follow Clay on Twitter and Instragram. 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 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 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

Click on a timestamp to play from that location

0:00.0

You're listening to TIP.

0:30.0

You're listening to TIP.

1:00.0

Before we dive into the episode, I'm really excited to share an upcoming event hosted by the Investors Podcast Network.

1:10.0

Beginning on Monday, October 17th, we are launching a stock pitch competition for you all to compete in.

1:17.0

In the first place winner will receive $1,000 plus a year long subscription to our TIP Finance tool and more.

1:24.0

You won't want to miss out on your chance to win $1,000.

1:27.0

If you are interested in participating, please visit theinvestorspodcast.com slash stock dash competition.

1:35.0

The last dates to submit your stock analysis will be on Sunday, November 27th.

1:40.0

Additionally, you will need to be signed up for our daily newsletter We Study Markets where we will announce the winners.

1:46.0

All entries can be submitted to the email newsletters at theinvestorspodcast.com.

1:52.0

Again, to get more info, please go to theinvestorspodcast.com slash stock dash competition.

1:59.0

Best of luck to those participating.

2:02.0

With that, let's dive right into today's episode covering Warren Buffett's 12 Investment Principles.

2:11.0

You are listening to the Investors Podcast where we study the financial markets and read the books that influence self-made billionaires the most.

2:19.0

We keep you informed and prepared for the unexpected.

2:30.0

Now, in Chapter 3 of Hacksham's book, he has the chapter titled, Buying a Business, the 12 Immutable Tenets.

2:37.0

Buffett is someone who believes that the best way to build wealth is to own very good businesses over long periods of time.

2:44.0

There are two ways he can go about that, which very much includes a similar process, and that's buying the whole business outright and buying stock in the publicly traded company.

2:53.0

Buffett prefers buying the business outright because it allows him to influence the company's capital allocation decisions, but Buffett of course doesn't limit his purchases to just wholly owned businesses.

3:04.0

The benefits for him of investing in the stock market is that one, he has thousands of companies to choose from, giving him a lot of choices to potentially invest in.

3:13.0

And two, with changes in Mr. Markets mood swings, the stock market gives him opportunities to find bargains or stocks trading at great prices to start buying shares in the company.

3:24.0

So from this perspective, Buffett states that, quote, when investing, we view ourselves as a business analyst in not a market analyst, not as macro analysts, and not even as security analysts, in quote.

...

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