TIP662: Building Buffett: The Foundation Of Success w/ Kyle Grieve

We Study Billionaires - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 22 September 2024

⏱️ 74 minutes

🔗️ Recording | iTunes | RSS

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Summary

On today’s episode, Kyle Grieve discusses an underrated book called “Warren Buffett’s Ground Rules” by Jeremy Miller, he’ll discuss how to avoid being taken advantage of by Mr. Market, how to maximize the effects of compounding, how Warren thinks about tracking investment performance, how Buffett aligned himself with his partners, why contrarianism is such a good trait in investing, the challenged of scaling capital and a whole lot more! IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 04:34 - How to think about the time lag between a businesses changing fundamentals and its market price 10:30 - The story that taught Warren Buffett about the magic of compounding 15:07 - Why avoiding frictional costs is so crucial to maximizing your ability to compound your money 35:25 - The five characteristics to avoid if you want to outperform the market 36:15 - The four investing buckets that Buffett invested in 40:04 - Warren's strategies for investing in generals, merger arbitrage, and controls 41:04 - Contrasting contrarianism and conservatism in investing and how to leverage it to make better investments 55:00 - Warren's early thoughts on concentration and diversification 59:28 - The two primary reasons scaling up capital can erode investment returns 1:03:24 - The importance of sticking to your investing principles and not dropping them just because other people are succeeding in unsustainable ways 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. Buy Warren Buffett’s Ground Rules here. Read the Buffett Partnership Letters here. 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 Range Rover TastyTrade The Bitcoin Way Vacasa Found Onramp Fundrise American Express SimpleMining Facet AT&T USPS 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! 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	Lately I've been passionate about
0:04.3	learning about Warren Buffett's early days.
0:07.0	Of course, his current success has many lessons.
0:10.0	But I think his past is where I think the average investor can really best relate to him.
0:14.2	The reason is simple.
0:15.4	He invested much smaller sums of capital and was much more nimble in what he could invest
0:19.2	in.
0:20.2	And he really used this to his advantage.
0:22.0	If you compare the Buffett
0:22.8	from the Buffett partnership days with the Buffett from today, the overarching
0:26.4	principles remain the same. However, I think very specific differences are
0:30.0	important to key in on and understand at a higher level. The biggest one is his holding
0:34.7	periods. He just wasn't a long-term set-it and forget-it type of investor at this time. He was focused
0:40.2	on lower-quality businesses that were trading well below intrinsic value. He knew that he wouldn't hold on to lower quality businesses that were trading well below intrinsic value.
0:43.8	He knew that he wouldn't hold on to his ideas for long because there just weren't that many returns
0:47.8	from holding once the price and value gap closed.
0:50.7	So on to the next opportunity he would go.
0:52.8	In today's episode, we'll go over why he invested differently with smaller sums,
0:56.5	the four buckets of investments he chose to invest his capital into,
0:59.6	how he aligned himself with shareholders to increase value while taking part in any potential
1:03.4	downside, Warren's specific views on performance and how he thought it ought to be measured, and
	...

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