In today’s episode, Shawn O’Malley (@Shawn_OMalley_) shares his favorite lessons from the billionaire investor Mohnish Pabrai, who some know as the “Indian Warren Buffett.” Pabrai is a master investor, a close friend of Charlie Munger, and a wonderful storyteller, too.

You’ll learn what it means to circle the wagons in investing, how a few big decisions will end up mattering the most throughout your investment career, how GEICO changed Benjamin Graham’s perspective on investing, why Nick Sleep told his investors to simply buy and hold three stocks, what Pabrai learned from having lunch with Buffett, what it means to be a Dhando Investor, plus so much more! 

Prefer to watch? Click here to watch this episode on YouTube.

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

03:59 - Why only 4% of Berkshire Hathaway’s decisions over the years have explained most of Buffett’s outperformance

08:52 - Which three stocks Nick Sleep told his investors to hold after winding down his fund

09:48 - Which types of stocks you’d want to circle the wagons around

10:10 - How GEICO changed Benjamin Graham’s perspective on investing

17:19 - What Pabrai learned from having lunch with Warren Buffett

30:26 - Why great companies are not always great investments 

37:55 - How the Patels built a motel empire across America

42:24 - What it means to be a Dhando Investor

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

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In today’s episode, Shawn O’Malley (@Shawn_OMalley_) takes you into the classroom of legendary investor Joel Greenblatt, sharing his biggest takeaways from watching Greenblatt’s lectures at Columbia. Greenblatt is a wildly successful investor, professor, founder of the Value Investor’s Club forum, and best-selling author of some of the most popular stock investing books ever written.

You’ll learn how Greenblatt thinks about the upside and downside potential for investments through three case studies, how Joel Greenblatt derived his Magic Formula for investing, why buying cheap stocks still works even though the strategy is well-known, where to look for the rarest but most attractive types of stock investments, what was Joel Greenblatt’s biggest investing mistake, plus so much more! 

Prefer to watch? Click here to watch this episode on YouTube.

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

02:34 - How to think through stock investments via case studies on the best pitches ever submitted to the Value Investor’s Club forum

03:02 - How Joel Greenblatt derived the Magic Formula for investing

05:12 - Which investments are the rarest but most attractive

07:34 - Why it’s important to condense an investment thesis down to just a few sentences

11:52 - How bankruptcy restructurings can actually generate undervalued and overlooked stocks

19:02 - Why so many great investors get their start with microcap stocks and special situations

30:16 - Why value investing still works and has worked across time

41:29 - How Joel Greenblatt made his biggest investing mistake

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

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HELP US OUT!

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In today’s episode, Shawn O’Malley (@Shawn_OMalley_) discusses the concept of hidden compounders, where some of the most boring businesses can make the best long-term investments. Compared to well-known compounders like Apple and Amazon, which have well-known track records in compounding returns for investors, there are loads of lesser-known companies with less obvious competitive advantages that operate in less exciting industries with equally impressive track records in recent years. 

You’ll learn what it means to be a hidden compounder, why many hidden compounders have invisible moats, what to look for in finding hidden compounders, what makes companies like Old Dominion and Teqnion so successful, why intangible assets can provide more enduring advantages than physical assets, why Peter Lynch loves boring businesses, plus so much more!

Prefer to watch? Click here to watch this episode on YouTube.

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

03:13 - What is a hidden compounder, and how to think about their invisible moats

03:43 - Why Peter Lynch loves boring businesses

06:44 - What signs to look for in identifying hidden compounders

31:36 - What the Lindy effect is, and how it relates to hidden compounders

32:27 - How Warren Buffett has set the standard for investing in boring, hidden compounders

37:48 - Why intangible competitive advantages can be the most enduring

40:17 - Morgan Stanley’s conclusions on investing in compounders

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

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Connect with Shawn: Twitter | LinkedIn | Email

HELP US OUT!

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In today’s episode, Shawn O’Malley (@Shawn_OMalley_) explores the fundamentals of, and merits in, being a long-term, quality-focused investor, using John Huber’s success and philosophy as an example to follow. Huber is the rare money manager who truly aligns incentives with his investors by using the template created by Warren Buffett back in his days before Berkshire Hathaway. 

You’ll learn about what makes Huber’s fee structure special, Huber’s philosophy for investing long-term in high-quality companies, how time-arbitrage gives long-term investors a structural advantage in markets, how to blend both a focus on value and quality, the importance of assessing compounding power, how much to pay for quality companies, how changes in valuation multiples affect returns even for great businesses, plus so much more! 

Prefer to watch? Click here to watch this episode on YouTube.

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

01:36 - Why John Huber used the Buffett partnership fee structure in his fund

03:44 - How time-arbitrage gives investors an advantage over time

04:55 - What it means to find investments where you can win big, and if you lose, not lose much

11:40 - How to calculate ROIC and why it matters for compounders

28:11 - What price to pay for the highest-quality businesses

32:33 - How changes in price-to-earnings multiples can affect returns over time

35:36 - How to blend both value and quality as investing styles

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

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HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Spotify! 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! 

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In today’s episode, Shawn O’Malley (@Shawn_OMalley_) explores the highs and lows of famed investor Martin Whitman’s career. Whitman is the founder of Third Avenue Management, which, at its peak in 2006, managed 26 billion dollars across a handful of funds. For nearly two decades, Whitman outperformed market benchmarks with average annual returns of 12 percent. 

Whitman’s approach to investing is unique, and in this episode, you’ll learn about why the balance sheet is just as important or more important than the income statement, how Whitman got his reputation for being a “vulture” investor, how Whitman was able to profit from companies going through bankruptcy, the legal differences between being a bondholder and stockholder, what Whitman looks for in the companies he owns long-term, and takeaways from Whitman’s legacy, plus so much more! 

Prefer to watch? Click here to watch this episode on YouTube.

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

07:13 - Why investors should focus on creditworthiness

08:20 - Why the balance sheet is just as important or more important than the income statement

11:35 - How Whitman’s legacy was tarnished by the 2008 Financial Crisis

15:05 - How to assess earnings power using assets

28:58 - What strategies Whitman used to beat the market averages

35:09 - How different markets have varying degrees of efficiency

37:42 - What issues Whitman has with current accounting standards

43:16 - The case for thinking more like a creditor in stock investing

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

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SPONSORS

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Connect with Shawn: Twitter | LinkedIn | Email

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Spotify! 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! 

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In today’s episode, Shawn O’Malley (@Shawn_OMalley_) discusses how companies can age just like people, how to define and understand the corporate life cycle, why the corporate decline phase is both inevitable and almost always poorly managed, how to invest across the corporate life cycle, plus so much more from studying Aswath Damodaran and recent research from Michael Mauboussin & Dan Callahan of Morgan Stanley.

Aswath Damodaran is a renowned professor of finance at NYU who recently published a book on corporate life cycles. Shawn pulls from Aswath and other sources in painting an actionable picture of the corporate life cycle and how it affects investors while also diving into case studies on three aging companies: Intel, Walgreens, and Starbucks.

Prefer to watch? Click here to watch this episode on YouTube.

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

02:18 - Why companies age 

07:37 - What the corporate life cycle looks like

18:03 - How companies can age gracefully (and why most don’t)

23:35 - How Intel, Walgreens, and Starbucks face different and similar challenges of aging

29:23 - Which declining stock Aswath Damodaran is investing in

34:31 - Investing strategies based on the corporate life cycle

36:59 - Why it’s important to diversify across the corporate life cycle

43:19 - Why younger companies carry more duration risk

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

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SPONSORS

Support our free podcast by supporting our sponsors:

Connect with Shawn: Twitter | LinkedIn | Email

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Spotify! 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! 

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In today’s episode, Shawn O’Malley (@shawn_OMalley_) discusses why great companies fail, as outlined by Clayton Christensen in his timeless book, The Innovator’s Dilemma, which was first published in 1997. The Economist actually named it one of the six most important business books ever written.

Christensen was an academic and business consultant who wrote a number of compelling books, but the Innovator’s Dilemma is by far his best-known work. Christensen worked at Harvard Business School for a decade before founding a consulting firm in 2000 and a venture capital firm focused on investing in Southeast Asia in 2005. 

In this episode, you’ll learn how disruptive innovations shift the status quo, the difference between disruptive and sustaining innovations, why companies can seemingly do everything right and still lose out to new competition, how following logical incentives can actually lead management to disregard threats from disruptive technology, why disruptive technologies tend to emerge on the fringes of established customer demographics, and what companies can do to prepare themselves for the inevitable rise of disruptive technologies, plus so much more!

Prefer to watch? Click here to watch this episode on YouTube.

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

02:11 - What is a disruptive innovation, and how it differs from sustaining innovations.

02:52 - How the “paradox” of innovation impacts industry leaders.

05:11 - Why even the best of the best companies aren’t immune to disruptive innovation.

08:03 - How to think about disruptive technologies from the vantage point of a value investor.

08:55 - How Tesla disrupted the automotive industry.

13:15 - Why the fast-paced hard-drive industry is such a good case study on innovation.

21:10 - How value networks shape biases and outcomes in companies.

31:28 - What industry leaders can do to manage disruptive innovation.

36:20 - How Honda stumbled into disruptive innovation in the U.S. market.

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

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Connect with Shawn: Twitter | LinkedIn | Email

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Spotify! 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! 

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In today’s episode, Shawn O’Malley (@Shawn_OMalley_) discusses The Alchemy of Finance by George Soros. George Soros is a controversial political figure, but he is a legend on Wall Street. Many know him as the man who “broke the Bank of England” for his epic short bets against the British pound that broke its currency peg. Soros’s hedge fund is among the best performing ever, generating billions of dollars in wealth and giving rise to a number of Soros’s protégés who would make their own names for themselves. 

You’ll learn about Soros’s life growing up in Nazi-occupied Hungary, how he went from immigrant to hedge fund titan, why philosophy and abstract thinking were critical to Soros’s success, Soros’s unique theory on investing called Reflexivity and how it has helped him throughout his career, which shortcomings Soros identified in markets, how he used reflexivity to profit from a boom in conglomerates, plus so much more!

Prefer to watch? Click here to watch this episode on YouTube.

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

02:18 - What it was like for George Soros growing up in Nazi-occupied Hungary

03:15 - How Soros went from immigrant to hedge fund titan

10:01 - What is reflexivity, and how did Soros use it

12:16 - Why markets are a place to test hypotheses

24:30 - Why Soros thinks free markets have shortcomings

26:33 - What value investors miss about reflexivity and stock prices

29:45 - How Soros profited from a boom in conglomerates using reflexivity

32:06 - What causes reversals in markets 

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

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Support our free podcast by supporting our sponsors:

Connect with Shawn: Twitter | LinkedIn | Email

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Spotify! 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

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In today’s episode, Shawn O’Malley (@Shawn_OMalley_) discusses the formula used by some of history’s best investors to systematically beat the market averages. It’s not a secret formula for winning if you don’t have any investing edge, but it is a system for maximizing wealth over time by properly sizing bets based on your conviction in terms of how favorable bets are for you ( your “edge.”)

You’ll learn about the great minds of Bell Labs behind the Kelly formula, how Ed Thorpe used the Kelly formula to beat the dealers in Las Vegas, which investors have used the Kelly formula and found success with it, how to define having an “edge” in investing and what that can mean for you, the controversies surrounding the Kelly formula, and why the Kelly formula isn’t better known, plus so much more!

Prefer to watch? Click here to watch this episode on YouTube.

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

01:57 - The origins of the esteemed Bell Labs and how its research led to the Kelly formula’s creation

02:27 -How to define and use the Kelly formula

18:22 - Why the Kelly formula is helpful

23:40 - Why there are limits to the Kelly formula

25:17 - How Ed Thorpe beat the dealer and the markets with the Kelly formula

28:22 - How Claude Shannon’s approach to beating the markets with the Kelly formula differed from Thorpe’s

36:38 - What it means to have an edge in markets 

38:52 - Why the Kelly formula is controversial

41:02 - How to think about your own edge in markets

41:44 - Why the Kelly formula isn’t better known

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

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Support our free podcast by supporting our sponsors:

Connect with Shawn: Twitter | LinkedIn | Email

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Spotify! 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! 

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In today’s episode, Shawn O’Malley (@Shawn_OMalley_) breaks down the energy drink company Monster Beverage, which you may be surprised to learn has been one of the best-performing stocks of the last few decades.

You’ll learn about how Monster got its start almost one hundred years ago and how it took on a new identity in the early 2000s, how Monster Energy changed the beverage market, why Monster’s stock has done so incredibly well, how Monster is fending off the competition and its plan for continuing to compound excellent returns, why Monster’s relationship with Coca-Cola is such a strategic advantage, how to think about valuing Monster Beverage, plus so much more!

Prefer to watch? Click here to watch this episode on YouTube.

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

02:22 - How Monster Beverage got its start almost a century ago

04:49 - How a single product completely changed Monster Beverage’s trajectory as a company

06:30 - Why Monster has delivered such exceptional returns

08:34 - Why Coca-Cola invested in Monster and how that partnership is still helping Monster to this day

10:08 - What the energy drink market looks like today and how competition threatens Monster

20:53 - What investors can learn from doing a case study on Monster

23:53 - Which challenges could weigh on Monster the most going forward

30:09 - Whether Shawn thinks the stock offers good value 

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

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SPONSORS

Support our free podcast by supporting our sponsors:

Connect with Shawn: Twitter | LinkedIn | Email

Help us reach new listeners by leaving us a rating and review on Spotify! 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

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