TIP621: Warren Buffett’s Wisdom: The Power Of Corporate Governance with Lawrence Cunningham

We Study Billionaires - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 7 April 2024

⏱️ 70 minutes

🔗️ Recording | iTunes | RSS

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Summary

Kyle Grieve chats with Lawrence Cunningham about Lawrence’s fascination with Warren Buffett and Berkshire Hathaway, why corporate governance is so crucial for shareholders to understand, the power of transparency, accountability, and ethical decision-making, how Warren Buffett created his shareholder letters to create a competitive advantage, a list of some incredible businesses to research to understand best top-notch corporate governance, the makeup of a successful incentive program and a whole lot more! Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 02:02 - How corporate governance protects shareholders. 06:53 - Why Warren Buffett has created a competitive advantage by writing his shareholder letters the way he does. 09:54 - A few businesses that have excellent corporate governance that investors should research. 13:35 - Lessons from Charlie Munger and Philip Fisher that helped Warren better understand quality. 29:39 - How Warren's alignment with shareholders is such a competitive advantage. 30:07 - Why Berkshire is such an attractive buyer compared to alternatives. 33:04 - A breakdown of some simple and complicated investments Warren has made using the 1-foot and 7-foot hurdle analogy. 40:41 - The ABCs of capital allocation and why all board members should understand them deeply. 46:27 - How Warren tracks intrinsic value for different business models and why you should utilize multiple tools. 56:32 - Why it's so hard for most companies to have shareholder-friendly incentive programs. And so much more! BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members. Buy The Essays Of Warren Buffett: Lessons For Corporate America here. Buy Dear Shareholder: The best executive letters from Warren Buffett, Prem Watsa and other great CEOs here. Check out Lawrence’s other books here. Related Episode: MI305: Exploring The DNA of Quality Businesses w/ Lawrence Cunningham | YouTube Video. Related Episode: TIP330: Warren Buffett w/ Lawrence Cunningham | YouTube Video. Learn more about the Berkshire Summit by clicking here or emailing Clay at [email protected]. Follow Kyle on Twitter and LinkedIn. Check out all the books mentioned and discussed in our podcast episodes here. Enjoy ad-free episodes when you subscribe to our Premium Feed. NEW TO THE SHOW? Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok. 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 TurboTax Fidelity Meyka NDTCO Fundrise iFlex Stretch Studios Public NerdWallet American Express Shopify NetSuite 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! 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.
0:02.0	Horrence Cunningham is one of my favorite investing related authors for a few reasons.
0:07.0	One, he's deeply entrenched in quality investing.
0:09.0	Two, he's one of the most passionate people regarding social governance I've ever spoken to.
0:14.0	Three, he has an in-depth understanding of the characteristics of a quality business.
0:19.0	And four, he's broken down one of the most outstanding companies ever, Berkshire Hathaway.
0:24.2	I often reread and reference his book The Essays of Warren Buffett.
0:27.5	It reminds me a poor Charlie's almanac where you are guaranteed to get smarter each time
0:31.8	you open the book.
0:33.0	Not only will you become more intelligent,
0:34.8	but you'll also pick up new insights each time you open it.
0:38.0	Seeing as the Berkshire annual meeting is just around the corner,
0:40.7	I thought it would be great to cover some of the details from this book with Lawrence and share them with you.
0:45.1	Today we discuss a wide variety of lessons, including Lawrence's fascination with Warren Buffett and
0:49.9	Berkshire Hathaway, why corporate governance is so crucial for shareholders to
0:53.5	understand. The power of transparency, accountability, and ethical decision-making,
0:58.0	how Warren Buffett created his shareholder letters to create a competitive advantage,
1:01.6	a list of incredible businesses to research to
1:04.0	understand top-notch corporate governance, the makeup of a successful incentive program, and a whole lot
1:09.0	more.
1:10.0	If you are a strong of a disciple of Warren Buffett as I am and enjoy learning about what makes
1:13.6	Warren Buffett and Berkshire Hathway so unique, you need to listen to this episode.
	...

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