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The Education of a Value Investor, Talks at Google, Guy Spier

nfwyt, quest-for-wealth3 min read

Created on: 2020-10-06

Guy Spier

  • Graduated from Harvard Business School

  • Attended Anthony Robbins seminar opened a new way of looking at the world.

  • From that point started figuring out, rule for how to improve my life

  • Compounding Good-will

    • Compound interest is 8th wonder of the world.

    • Compound at any rate, over long period of time, it gets large very very quickly.

    • You can Compound goodwill over time and it gets large too.

    • Listen to Charlie Munger talk "24 standard causes of Human misjudgment".

    • Schldein talks about psychology of human judgement - Power of reciprocation.

    I am slightly crazy in that way and when something grabs me, i just do it. Sometimes if it fascinates me, i do it with great intensity. So i set myself a goal of, i think 3 notes a day 5 days a week. Just kept sending it out.

    • Meeting good people is compounded by human good will you do yourself.
  • Power of Authencity

  • The idea of Resonance

    • Example on bathtub and rubber duck and start making some waves. Eventually you can get the whole bathtub moving in one single wave.
  • Great book by Holldobler and Wilson: Journey to the ants.

    • Thinking about the world as an ant colony or rainforest.
  • Fiction to say we are rational, we are rational in limited circumstances.

  • I think Im a better investor that I know I am not rational and this is something I have to deal with it and i have figure workarounds to make it better.

  • Anthony Robbins "Matching and Mirroring" or Mohnish Pabrai calls it Cloning.

    • Even if we do a small fraction of our ideal investor gets us where we need to be in terms of profits.
    • Still be yourself while modeling your ideal.
  • Conserve will power for things that count for example exercise in morning afterwards you cannot.

  • Create habits and behaviours that improve the probability that I will outperform the market.

NoteForMe : compare revenue, earnings and profit of companies in same sector may be read annual reports and get picture to sell or not

Guy's investments rules

  1. Stop checking the stock prices
  2. If someone tries to sell you something - don't buy it
  3. Don't talk to management
  4. Gather investment research in right order
  5. Discuss investment ideas only with people who have no axe to grind
  6. Never buy or sell stocks when the market is open
  7. If a stock tumbles after you buy it don't sell it for 2 years
  8. Dont talk about your current investments

If you take S&P during 2009, it was very skewed by some overvalued companies, its sort of Market Cap-weighted index. So more these companies were overvalued, more they had to be in the index, so if you are investing in the index, its more skewed towards the opposite of value investing. Find indexes which are not skewed by looking at 'how the index is constructed'.

Asked warren buffett 'How you deal with envy ?'

WB : I don't know.

WB talks about 'Inner scorecard' idea. Work on something that gives you true joy.

Emotions are call to action.

Envy is a signal, to figure out something wrong in my life that i need to change. Fixing envy is by ensuring we go to bed everynight happy with what we did during the day. If we are not doing that, then we need to try really hard to get to doing that.

# How to be inspirational, Google talks, Monish & Guy Speir

  • Everybody should get their owner manual by the age of 10
  • Industrial psychologists for 360 review
  • Commitment to consistency. Commits me to certain values and they are great values to be committed to. But it also commits me to certain standard of behaviour.
  • When you are congruent and aligned with yourself, you don't envy others.
  • Come to deliver values. It might not be a big deal to you but for other person it could be a big deal.

# Knowledge Session of Kolkata Investor Group with Mr. Guy Spier

Date : 15/Nov/2021

  • Tobacco & Lottery/Gambling - Zero-sum. Profits may get normalised.
  • Invest in companies that have Nobel mission
  • If there is high returns, somebody is getting ripped off
  • Invest in companies where it's shareholders and everyone involved are happy. Eg: Coke, McD
  • When you create enormous value for you stakeholders, they will voluntarily lock-in into your business. Eventually companies like this control the ecosystem. Eg: Amazon for it low prices, Costco, Intel, Microsoft
  • Amazon is a non-zero sum as they can scale a supplier to markets where they had no access earlier.
  • Stock exchanges are sort of tech company monopoly
  • Some Networks are valuable as they grow and some top-out/saturate(like uber, lyft)

# References

  • Wealth Education