On today’s episode, Clay wraps up his review of Gautam Baid’s book, The Joys of Compounding. Today’s episode is part 5 and the final episode of our review of this incredible book. This episode is jam packed with investing wisdom that you won’t want to miss.
Gautam Baid is the Managing Partner and Fund Manager of Stellar Wealth Partners India Fund, a Delaware-based investment partnership which is available to accredited investors in the US. The fund is modeled after the Buffett Partnership fee structure and invests in listed Indian equities with a long-term, fundamental, and value-oriented approach.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro.
03:02 - Why we should read more history and study fewer forecasts.
12:05 - Why “Don’t Fight the Fed” is a misguided investment strategy.
22:15 - Why the ability to change our mind as investors is more critical now than ever before.
28:37 - What base rates are and why Buffett loves companies with high base rates.
32:32 - Gautam’s wisdom related to opportunity costs.
39:11 - How Nick Sleep, Charlie Munger, Warren Buffett have become masters of pattern recognition and better investors because of it.
56:34 - Why value investors should generally avoid stop loss orders on long-term secular winners.
62:48 - What the real secret is to utilizing the power of compounding.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
---Join our newly released [TIP Mastermind Community] (https://www.theinvestorspodcast.com/mastermind/) .
---Check out the book, [The Joys of Compounding] (https://www.amazon.com/Joys-Compounding-Passionate-Heilbrunn-Investing/dp/0231197322?keywords=the+joys+of+compounding+by+gautam+baid&qid=1677875949&sprefix=the+joys+of+com%2Caps%2C126&sr=8-1&linkCode=ll1&tag=tipnetwork-20&linkId=70ea5b2ea31f9f69db2f552bd4770cfc&language=en_US&ref_=as_li_ss_tl) .
---Tune into our previous episodes covering The Joys of Compounding: [Part 1] (https://link.chtbl.com/WSB534) , [Part 2] (https://link.chtbl.com/WSB536) , [Part 3] (https://link.chtbl.com/WSB543) , & [Part 4 ] (https://link.chtbl.com/WSB546) or watch the videos [here,] (https://www.theinvestorspodcast.com/episodes/the-joys-of-compounding-by-gautam-baid/) [here ,] (https://www.theinvestorspodcast.com/episodes/buffett-and-mungers-principles-and-mental-models/) [ here] (https://www.theinvestorspodcast.com/episodes/100-baggers-stocks-that-return-100-1-w-chris-mayer/) and [ here] (https://www.theinvestorspodcast.com/episodes/the-holy-grail-of-long-term-value-investing/) .
---Check out our recent episode covering [Mark Leonard's Letter's and Constellation Software] (https://link.chtbl.com/WSB531) . Watch the video [here] (https://www.theinvestorspodcast.com/episodes/mark-leonard-the-best-capital-allocator-youve-never-heard-of/) .
---Check out Clay’s YouTube video calculating the intrinsic value of Constellation Software [here] (https://www.youtube.com/watch?v=yM2zQxiWCOU) .
NEW TO THE SHOW?
---Check out our [We Study Billionaires Starter Packs] (https://www.theinvestorspodcast.com/we-study-billionaires-starter-packs/) .
---Browse through all our episodes (complete with transcripts) [here] (https://www.theinvestorspodcast.com/we-study-billionaires/) .
---Try our tool for picking stock winners and managing our portfolios: [TIP Finance Tool] (https://www.theinvestorspodcast.com/tip-finance/) .
---Enjoy exclusive perks from our [favorite Apps and Services] (https://www.theinvestorspodcast.com/affiliates/) .
---Stay up-to-date on financial markets and investing strategies through our daily newsletter, [We Study Markets.] (https://www.theinvestorspodcast.com/newsletters/)
---Learn how to better start, manage, and grow your business with the [best business podcasts] (https://www.theinvestorspodcast.com/podcasts/20-best-business-podcasts/) .
P.S The Investor’s Podcast Network is excited to launch a [subreddit] (https://clicks.aweber.com/y/ct/?l=7HQTa&m=3hIUiG6T8vBkNOB&b=8NVZC.qh9__ur.qME8mcEQ) devoted to our fans in discussing financial markets, stock picks, questions for our hosts, and much more! Join our subreddit [r/TheInvestorsPodcast] (https://clicks.aweber.com/y/ct/?l=7HQTa&m=3hIUiG6T8vBkNOB&b=8NVZC.qh9__ur.qME8mcEQ) today!
---If you’re aware you need to improve your bitcoin security but have been putting it off, [Unchained Capital] (https://unchained.com/concierge) 's Concierge Onboarding is a simple way to get started—sooner rather than later. Book your onboarding today and at checkout, get $50 off with the promo code FUNDAMENTALS.
---Have peace of mind knowing [River] (https://river.com/) holds Bitcoin in multi-sig cold storage with 100% full reserves.
---Easily diversify beyond stocks and bonds, and build wealth through streamlined CRE investing with [EquityMultiple] (https://equitymultiple.com/WSB) .
---Make connections, gain knowledge, and uplift your governance CV by becoming a member of the [AICD] (https://aicd.com.au/member) today.
---What does happen when money and big feelings mix? Tune in to find out on the new podcast, [Open Money] (https://podcasts.apple.com/ca/podcast/open-money-by-servus-credit-union/id1674940247) , presented by Servus Credit Union.
---Capitalize on the rapidly growing cybersecurity market today with [Atakama] (https://invest.atakama.com/wsb) .
---Have [Commonwealth Private] (https://commbank.com/success) 's Private Bankers take the time to understand your goals and tailor solutions that create less for you to do and more for you to enjoy.
---If you're into marketing podcasts that walk through how successful entrepreneurs, politicians, and influencers have convinced and persuaded people, then you should give [Nudge] (https://www.nudgepodcast.com/) , hosted by Phil Agnew, a listen!
---Get yourself a [Blockstream Jade] (https://store.blockstream.com/fundamentals) -- An all-in-one, bitcoin-only hardware wallet that makes protecting your bitcoin so easy. Use the coupon codeFundamentalsto get 10% off.
---Apply for the Employee Retention Credit easily, no matter how busy you are, with [Innovation Refunds] (https://getrefunds.com/) .
---Hire expert marketers, on-demand, with [MarketerHire] (https://marketerhire.com/wsb) . Listeners get a $1,000 credit for first-time customers when you use code WSB.
---Discover the leading community for engaged investors, and the best source of investment analysis and opinion with [Seeking Alpha] (https://seekingalpha.com/wsb99) . Listeners get a special deal: Alpha Picks for $99 + 1 month of FREE Seeking Alpha Premium!
---Support our free podcast by supporting our [sponsors] (https://theinvestorspodcast.com/sponsors) .
HELP US OUT!
Help us reach new listeners by leaving us a [rating and review] (https://docs.google.com/presentation/d/1Rnl5KGxmrYISQ7UfbEREMN-AD6b40i6CwWUbXaTabmI/edit) on [Apple Podcasts] (https://podcasts.apple.com/us/podcast/we-study-billionaires-the-investors-podcast-network/id928933489) ! 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!
... Read more