TIP529: Joel Tillinghast & Uncovering the Art of Outperformance

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

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 28 February 2023

⏱️ 61 minutes

🔗️ Recording | iTunes | RSS

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Summary

On today’s episode, Clay Finck reviews Joel Tillinghast’s book, Big Money Thinks Small, and does analysis on two companies built around acquisitions - Brown and Brown Insurance and Constellation Software. Joel is an incredible long-term investor as he has consistently outperformed the market and currently manages around $70 billion at Fidelity. Peter Lynch, who hired Joel at Fidelity, has described Joel as “one of the greatest, most successful stock pickers of all time.” IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 06:04 - Why some level of speculation is required in every investment. 08:07 - What speculations are acceptable in Joel Tillinghast’s conservative investment approach. 10:34 - What you need to understand about a company prior to investing. 13:02 - Why Tillinghast avoids investing in gold. 20:20 - Why investing in countries with the fastest GDP growth rate isn’t a wise investment strategy. 29:52 - Clay’s insights into two acquisition-focused companies - Brown and Brown Insurance and Constellation Software. 37:27 - Why Constellation Software may be worth further investigation for stock pickers interested in high quality businesses. 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. Joel Tillinghast’s book Big Money Thinks Small. Newsletter: The Risks in Owning Chinese Equities. Listen to Trey’s Interview with Josh Young Covering Oil, or watch the video. Chris Mayer’s blog post on Constellation Software. Check out Clay’s episode covering legendary British Investor Terry Smith. Watch the video here. Don’t miss our review of Four Wide Moat Stocks for 2023. Watch the video here. Follow Clay on 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: River Toyota Range Rover Fundrise AT&T The Bitcoin Way USPS American Express Onramp SimpleMining Public Vacasa 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! 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

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0:00.0	You're listening to TIP.
0:03.6	Welcome to the Investors Podcast.
0:05.3	I'm your host, Clay Fink.
0:07.0	It's great to have you as in today's episode, I'll be covering a book by Joel Tillinghouse
0:11.6	called Big Money Think Small.
0:14.6	Joel Tillinghouse is an investment legend who has managed money with Fidelity for 36 years
0:20.0	and manages $70 billion.
0:22.8	Peter Lynch hired Joel at Fidelity and he described him as one of the greatest, most successful
0:28.4	stockpakers of all time.
0:31.0	Since 1989, Joel has beaten the market by 3.7 percentage points, which is just an incredible
0:37.0	feat.
0:38.0	During this episode, Joel gained insights about how the future is entirely uncertain and
0:43.2	some level of speculation is required in every investment.
0:47.5	What speculations are acceptable for Joel's conservative investment approach?
0:52.4	What you need to understand about a company prior to investing?
0:56.5	Joel's thoughts on why he chooses not to invest in gold?
1:00.3	Why investing in countries with the fastest GDP growth may not be the best decision and
1:05.1	so much more?
1:06.6	At the end of the episode, I'll do some stock analysis on two companies that focus on acquiring
1:11.5	businesses for their continued growth, Brown and Brown Insurance and Constellation Software.
1:18.0	Constellation Software specifically is a very interesting case study as Mark Leonard,
1:22.1	who has at the helm of the company, has increased the share price of Constellation at an astounding
	...

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