Robert Hagstrom: Buffett, Munger, Mental Models and the Art of Great Investing

Robert Hagstrom is one of the most thoughtful multidisciplinary investors and writers of this generation. He is the author of seven investment books, including The Warren Buffett Way, and is the Chief Investment Officer at Equity Compass Investment Management and senior portfolio manager of its Global Leaders Portfolio. In this conversation, Robert explains why investing is the last liberal art and how ideas from philosophy, psychology, biology and literature can create an advantage in markets. We explore how Wittgenstein helped Bill Miller recognize Amazon's true business model, why great investments underperform more often than most people realize, the difference between conviction and stubbornness and how Robert rebuilt after the devastating experience of the global financial crisis. Robert also shares his approach to reading, portfolio concentration, return on invested capital, holding multibaggers and distinguishing between investments that are easy, impossible or simply too difficult to understand. This is an episode about investing, but even more than that, it is about how to think. Topics include: Buffett, Munger and Bill Miller Multidisciplinary thinking and mental models The Amazon IPO Investor psychology and self-reliance Holding great businesses through drawdowns Concentrated portfolios Reading to become wiser The changing structure of financial markets Learn more about Robert Hagstrom and his work at Equity Compass. Learn more about Sean's private advisory work with CEOs, founders and investors at SeanDeLaneyCoaching.com. This conversation is for educational purposes and should not be considered personalized investment advice.