TIP661: Lessons from Bear Markets w/ Richard Lawrence

We Study Billionaires - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 20 September 2024

⏱️ 73 minutes

🔗️ Recording | iTunes | RSS

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Summary

On today’s episode, Clay is joined by Richard Lawrence. Richard is the Founder and Executive Chairman of Overlook Investments, a leading value-oriented investment firm in Asia that he founded in 1991. Over a 30-year time period, Overlook compounded capital at 14.3% per year — a remarkable record of growth that is a testament to their consistent ability to find and invest in Asia’s best companies. IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 01:53 - Why the 1980s was the most transformative period in Asia’s history. 04:03 - Key lessons that Richard learned from his father, who owned an investment firm in New York. 07:10 - Why Richard prefers to invest in the most simple businesses. 12:23 - What Richard learned from having his apartment ransacked after publicly calling out a management team his firm invested in. 13:17 - What was happening during the Asian financial crisis that made it an economic nightmare for businesses all throughout Asia? 22:33 - Why Richard regrets ever listening to Buffett’s advice on ignoring the broader macro environment when investing in great companies. 23:51 - How Richard helped Taiwan Semiconductor improve their capital allocation decisions. 38:55 - Why Richard generally prefers dividends over share buybacks. 42:24 - What led Richard to recommend TSMC’s stock to Warren Buffett? 44:33 - Why Overlook has started to bet big on China. 50:49 - Richard’s view on the current macro situation in China. 58:55 - The biggest misconceptions that US investors have with respect to China. 01:00:35 - How Jeremy Grantham influenced Richard to be more mindful about the environmental risks that lie ahead And so much more! 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, Kyle, and the other community members. Richard’s fund: Overlook Investments. Richard’s book: The Model. Book mentioned: The Economics of Climate Change. John Holdren’s annual presentation on climate change. Related Episode: Listen to WSB647: Value Investing Masterclass w/ Soo Chuen Tan, or watch the video. Follow Clay on Twitter. 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: Bluehost Fintool PrizePicks Vanta Onramp SimpleMining Fundrise TurboTax 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 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. On today's episode, I'm joined by Richard Lawrence. Richard is the founder
0:07.2	and executive chairman of Overlook Investments, a leading value-oriented investment firm in Asia that he
0:13.3	founded in 1991. Over a 30-year time period, overlooked compounded capital at 14.3% per year year by betting on Asia's best companies. Over that same time period, Overlook compounded capital at 14.3% per year by betting on Asia's best companies.
0:23.9	Over that same time period, the S&P 500 grew by around 10.4%, representing roughly 3.9 percentage
0:30.7	points in alpha per year.
0:32.9	At that rate, $10,000 invested in Overlook at the beginning of 1992 would have compounded to roughly $551,000
0:41.3	versus just $194,000 had you invested in the S&P 500.
0:46.3	Even David Swenson recognized the talent in Richard as he invested a portion of the Yale Endowment
0:52.2	Fund in Overlook early on.
0:58.9	Richard has a fascinating story, and I'm very excited to shed light on it during this episode.
1:04.8	During our conversation, we cover why the 1980s was the most transformative period in Asia's history,
1:08.1	why Richard prefers to invest in the most simple businesses,
1:11.9	what Richard learned from having his apartment ransacked after publicly calling out a management team his firm invested in? What was happening during the Asian
1:16.6	financial crisis that made it nothing short of an economic nightmare for businesses all throughout
1:21.4	Asia? Why Richard regrets ever listening to Buffett's advice on ignoring the broader macro
1:26.7	environment when investing in great companies? What led Richard to Buffett's advice on ignoring the broader macro environment when investing
1:27.8	in great companies?
1:29.0	What led Richard to recommending Taiwan semiconductor stock to Warren Buffett?
1:33.6	Why Overlook has started to bet big on China?
1:36.8	Richard's view on the current macro situation in China and much more.
1:40.6	Without further delay, I bring you today's chat with Richard Lawrence.
1:47.9	Celebrating 10 years and more than 150 million downloads. You are listening to the Investors
	...

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