TIP546: THE HOLY GRAIL

OF LONG-TERM VALUE INVESTING

20 April 2023

On today’s episode, Clay continues his review of Gautam Baid’s book, The Joys of Compounding. Today’s episode is part 4 of our review of this incredible book.

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.

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IN THIS EPISODE, YOU’LL LEARN:

  • What the holy grail of long-term value investing is.
  • Why Gautam prefers to invest in high quality businesses.
  • Why a company’s longevity of growth is much more important than its rate of growth.
  • Why Gautam is bullish on India.
  • Ways in which we can capitalize on inefficiencies in the markets.
  • How Gautam thinks about portfolio management and position sizing.
  • Why it’s so important we emphasize the preservation of our capital and avoiding ruin.
  • And much more!

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

[00:00:00] Clay Finck: Before we dive into today’s episode, I wanted to share something really exciting we’ve been working on here at The Investor Podcast Network. To give you some background, over the past few months, we’ve been organizing these TIP meetups for the Berkshire Hathaway shareholders meeting in the Omaha.

[00:00:19] Clay Finck: Within no time, over 200 people signed up for our TIP meetups, forcing us to close registration due to the limited space we have in. Then we realize something. So many people are spending thousands of dollars taking multiple vacation days to travel to Omaha. Not only to see Warren and Charlie, but also to meet other like-minded investors.

[00:00:43] Clay Finck: Just skimming through our registration list here, we have people traveling from Singapore, Canada, Australia, Germany, the UK, Bahamas, and all over the world. Even with the internet nowadays, it is clear to us that people have trouble connecting with like-minded investors that they can trust. This is why we created the TIP Mastermind community in the TIP Mastermind community.

[00:01:07] Clay Finck: You get access to many of the hosts here at TIP, including myself, and access to a network of high quality investors. This is a great way to source ideas, test existing ideas, and meet other investors with thousands of different stocks and a ton of noise out there. Having access to a tight-knit, knowledgeable community that shares ideas is invaluable.

[00:01:31] Clay Finck: Charlie Munger taught us that truly great ideas are rare and they don’t come often, and it’s extremely difficult to find these ideas on our own. I think back to the very beginning of how TIP. Preston and Stig met in an online community that shared ideas. If they hadn’t met in that community, then the TIP you know and love today would not exist.

[00:01:57] Clay Finck: Here’s the thing though, with the mastermind community, if we let it get too large and let just anyone in it, then we’d still have the problem we had before of too much information to sort through. This is why we are limiting the first cohort to 30 paid members. This is to ensure that the discussions are high quality and the group isn’t too overwhelming for anyone.

[00:02:24] Clay Finck: I’ll also be hosting a live discussion with Stig Brodersen that will be exclusively available to community members on Monday, April 24th, 2023. Stig and I are going to discuss his philosophy on constructing his portfolio as well as stocks that he is researching today. If you’re interested in joining the Mastermind community, do so today before spots fill up. You can learn more and join by visiting theinvestorspodcast.com/mastermind. To join today, we want to attract high quality members to the group. So if you happen to know someone who is deeply interested in stock investing and is a fan of TIP, feel free to let them know about the community too.

[00:03:09] Clay Finck: We expect spots to fill up quickly, so be sure to check it out today. All right, without further ado, let’s dive right into today’s episode.

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