What Formula 1 racing can teach us about investing.

“It takes a lot of ambition to maximize your wealth over 100 years” - Luca Dellanna

I was introduced to Luca’s work by Guy Spier in our conversation a year and a half ago. I got see Luca in person a few times since, and we recorded by now three episodes of Talking Billions. Given the kind of long-term, patient, disciplined investing that I practice, Luca’s thoughts on long-term games and reproducible success resonate with me and have had a big impact on me. Luca expanded my vocabulary to explain something that I and my clients intuitively understand.

I greatly enjoy every episode of Talking Billions as I’m sure you can easily tell, and I can’t have favorites, but this conversation is up there in my book, so if you can, don’t miss it.

Luca Dellanna is a management advisor focused on increasing revenue through better people and operations management.

After a master’s degree in automotive engineering, Luca spent the first part of his career working for DuPont’s consulting unit in Frankfurt, Germany. There, he focused on managerial excellence projects in a variety of manufacturing industries all across Europe.

He has also published books about management, human behavior, and economics that earned him appearances on the most important conferences and podcasts in his field, Nudgestock and EconTalk, respectively.

Luca writes regularly on Twitter (@DellAnnaLuca).

His personal website is www.luca-dellanna.com

Today, we talk about the different mindsets of short-term versus long-term players.

We talk about how short-term players focus on immediate gains, while long-term players prioritize sustainable growth over time.

We discuss the importance of considering the time horizon in investing and life decisions.

We talk about understanding the impact of time horizon on risk management and the pursuit of wealth.

Luca shares the value of delaying comparison and enjoying the journey in achieving long-term objectives.

We discuss how risk management is not about impeding growth but rather about enabling faster growth by protecting against major risks.

We talk about how long-term strategies should be sustainable, constructive, and inevitable, ensuring a 100% success rate over the long term.

Luca shares that participating in a 'race to the bottom' can lead to sacrificing too much and ultimately losing, even for the winner.

05:00 Short-Term vs. Long-Term Players: A Distinctive Contrast

08:26 Factors Influencing Time Preference: Genetics, Experiences, and Environment

16:13 The Importance of Experiencing Long-Term Benefits for Emotional Solidification

34:16 Navigating Parallel Universes of Success

42:22 The Significance of Delaying Comparison and Enjoying the Journey

53:44 The Relationship Between Risk Management and Growth

01:04:14 Understanding Long-Term Strategies

Podcast Program – Disclosure Statement

Blue Infinitas Capital, LLC is a registered investment adviser and the opinions expressed by the Firm’s employees and podcast guests on this show are their own and do not reflect the opinions of Blue Infinitas Capital, LLC. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.

Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.  Investments involve risk and unless otherwise stated, are not guaranteed. 

Information expressed does not take into account your specific situation or objectives, and is not intended as recommendations appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation.  Past performance is not indicative of future performance.