Dr. Gio Valiante

[jeffsreng]

 

How the Best Investors Respond to Financial Crisis (w/ Dr. Gio Valiante):

 

 

https://www.amazon.com/Fearless-Golf-Conquering-Mental-Game/dp/0385511922/ref=sr_1_1?qid=1584673842&refinements=p_27%3ADr.+Gio+Valiante&s=books&sr=1-1&text=Dr.+Gio+Valiante

[Saluki]

 

Great new interview with Gio.   In addition to the Warren & Charlie little rubber duckies on my computer, I have a post it with a quote from him "Deploy capital proportionate to the the opportunity that presents itself in the moment" on my screen. 

 

He makes some interesting points.  If you're not smarter and can't outwork the pros who do this all day every day, then you're best bet is to have a different perception (Buffett seeing Apple as a consumer brand, or Washington Post as a SOTP, not a company whose broadcast licenses were going to revoked by Nixon, or Geico as a company with a better business model and long runway, not a bankrupt insurer), hire someone to do what you can't (hedge fund?), or have a better process.  I think the process part is where people go wrong.  Tyson said everyone has a plan until they get punched in the mouth. People can value things quantitively when the markets are calm, but they succumb to FOMO when a stock is ripping upwards, or sell in a panic when they see losses.  They improvise instead of following a process, because most of them don't even have a process. 

 

 

[ValueArb]

All value investing requires being able to make dispassionate decisions, and a process that minimizes bias. That's why Charlie and Warren recommend reading Cialdini's "Influence" and why Buffett's process includes 

 

1) Never reading analyst reports. Throws them right in the garbage lest their opinions infect his. This also extends to never using other peoples estimates, and always try to go to source material to make your own.

2) Never checking stock price before estimating intrinsic value. If he finds himself falling in love with a business as he's reading their 10K, he doesn't want to have a target price in the back of his mind as he thinks of a reasonable valuation range for it.

3) Trying to filter out news and current events and focus on what will be true in the long term. I admit I'm unclear how they do this given they admit to reading a lot of newspapers and Warren allegedly keeps CNBC on in the background of his office. But they are big proponents of Graham's Mr Market parable.

 

https://fs.blog/mr-market/

 

 

[Saluki]

 

This is the second part of a two-part interview on the Knowledge Project Podcast.  It's audio only, but has some good ideas about process vs outcome and dealing with setbacks.