TIP529: Joel Tillinghast & Uncovering the Art of Outperformance
We Study Billionaires - The Investor’s Podcast Network
Stig Brodersen
4.6 • 3.6K Ratings
🗓️ 28 February 2023
⏱️ 61 minutes
🧾️ Download transcript
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
- 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.
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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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