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RWH021: Investing Amid Uncertainty w/ Joel Greenblatt, Bill Miller, Howard Marks, & François Rochon

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Feb 5, 2023

Joel Greenblatt, famed for his investment genius, shares lessons on learning from mistakes and adapting in turbulent markets. Howard Marks emphasizes the need for caution to avoid ruin, while Bill Miller offers strategies for weathering brutal losses. François Rochon highlights the importance of emotional resilience and independent thinking in investing. Together, they explore how to navigate uncertainty, improve decision-making, and capitalize on the emotional swings of the market for successful investing.

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INSIGHT

Emotional Investing

Even seasoned investors like Joel Greenblatt feel emotional pain from losses.
This emotional intensity creates opportunities for those who can control their emotions.

INSIGHT

Exploiting Market Emotions

The market's bipolar mood swings create opportunities.
Dispassionate investors can exploit these emotional fluctuations.

ADVICE

Learn Valuation

Learn to value businesses; it's essential for successful investing.
Without valuation skills, you are at the mercy of market emotions.

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William Green showcases some of the most valuable insights from four investing superstars who have recently appeared on the Richer, Wiser, Happier podcast: Joel Greenblatt, Bill Miller, Howard Marks, & François Rochon. Here, these famed investors share practical lessons on how to deal with uncertainty & handle the emotional challenges of investing in turbulent times. William adds his own observations, drawing on his conversations with these great investors & with legends like Sir John Templeton, Peter Lynch, & Charlie Munger.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

03:34 - How a disastrous investment taught Joel Greenblatt that anything can happen.

10:34 - What Fidelity legend Peter Lynch learned from a shocking setback early in his career.

12:06 - How to protect ourselves from uncertainty, bad luck, & our own analytical mistakes.

12:49 - Why Howard Marks warns that you shouldn’t push the limits if you want to avoid ruin.

14:48 - How Joel Greenblatt deals with mistakes by learning from them, then moving forward.

28:08 - How Joel handles the “kick in the stomach” when an investment goes wrong.

35:02 - How to succeed by taking advantage of the wild emotional mood swings of the crowd.

38:30 - Why stock pickers must learn to value businesses, buy at a discount, & then wait.

40:17 - How Bill Miller handles the discomfort of brutal losses during the most turbulent times.

43:00 - What Bill advises regular investors to do so they can endure the pain of market mayhem.

44:33 - Why Howard Marks says we need to be honest about our tolerance for risk & loss.

46:06 - How the best investors diversify or concentrate in ways that suit their temperament.

50:07 - Why Howard believes that “emotion is the greatest enemy of superior investing.”

52:35 - How Sir John Templeton thrived by hunting for bargains in the most-hated markets.

1:00:41 - Why Howard Marks thinks he was wrong to be a “knee-jerk skeptic” about Bitcoin.

1:03:30 - How to safeguard against our own biases, hubris, & overconfidence.

1:08:58 - Why François Rochon is convinced that it’s rational to be optimistic about the future.

1:10:51 - What history shows about mankind’s extraordinary ability to find solutions to its problems.

1:21:31 - Why Warren Buffett says that bad news is an investor’s best friend.

1:23:23 - Why Buffett regards babies being born in America today as “the luckiest crop in history.”

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Listen to William's interview with Ray Dalio, The Changing World Order - TIP410, or watch the video.
Listen to William’s interview with Joel Greenblatt, How to Win the Investing Game - RWH003, or watch the video.
Listen to William’s interview with Bill Miller, Investing Legend Bill Miller on Amazon, Bitcoin, & Buffett - RWH007, or watch the video.
Listen to William’s interview with Howard Marks, Investing Wisely In An Uncertain World - RWH002, or watch the video.
Listen to William’s interview with François Rochon, The Best of the Best - RWH016, or watch the video.
Berkshire Hathaway’s 2015 annual report, featuring Buffett’s optimistic view of the future.
William Green’s book, “Richer, Wiser, Happier” – read the reviews of this book.
Follow William Green on Twitter.

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