Investing by the Books

December 11, 2023

#52 Stephen Penman: Accounting for Value

Stephen Penman is a professor of accounting and security analysis at Columbia Business School and Bocconi. He has also written the book Accounting for Value, which illustrates how accounting numbers relate to value creation. In our conversation with Penman, we discuss the necessary separation between speculation and valuation, the ideal structure of an equity research report, and how aspiring investors can improve their processes. For more info about the podcast, go to the episode page and make sure to follow us on Twitter/X. We love to hear your thoughts so please give us a rating/review in your podcast player! Also, feel free to share great authors, books, and investors you want to hear on the show. /Eddie & Niklas with team This episode was recorded on Oct 30, 2023. ————————————— Episode Chapters (00:00) Intro by Eddie & Martin (01:38) Welcoming Stephen (04:17) Accounting for Value (09:26) Fair value, mark to market, and historical cost accounting (12:41) Separating speculation and valuation (19:03) Using valuation to challenge the market’s assumptions (20:20) Residual income (26:38) How to improve as an aspiring investor (30:28) Informational vs analytical edge (32:26) Accounting arbitrage in today’s market (37:39) Passive investing (41:01) How does Stephen invest his own money? (44:54) Allocating time between research and investing (49:51) Should accounting professionals push changes to standards? (53:52) The ideal structure of an equity research report (58:56) Stephen on Buffett (01:04:21) Stephen’s new book (01:06:27) A book Stephen would like to read but not write ————————————— Books Mentioned Accounting for Value - Stephen Penman Accounting for Value: Fundamental analysis for the active investor - Stephen Penman Expectations Investing - Michael Mauboussin ————————————— More on Stephen Profile on Columbia Business School ————————————— About the Podcast Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books ————————————— What is Investing by the Books? Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis. Visit the website: http://www.investingbythebooks.com/ Follow on Twitter/X: https://twitter.com/Investbythebook ————————————— What is Redeye? Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality. Visit the website: https://www.redeye.se/ Follow on Twitter: https://twitter.com/Redeye_ ————————————— Disclaimer Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

71 min

November 13, 2023

#51 Shu Hattori and Andrew Chou: The McKinsey Edge

Shu Hattori has more than fifteen years of experience in management consulting, turnarounds & venture-backed start-ups, with employers including McKinsey, Groupon, and Alix Partners. Shu is now building Japan’s first serial acquirer - Pinecone, together with Andrew Chou. Our conversation builds upon Shu’s book, The McKinsey Edge. We talk about what investors can learn from consultants, thoughts on decentralization, and the vision for Pinecone. For more info about the podcast, go to the episode page and make sure to follow us on Twitter/X. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You’re also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team This episode was recorded on Oct 11, 2023. ————————————— Episode Chapters (00:00) Introduction by Eddie & Niklas (03:03) Welcoming Shu and Andrew (08:17) How Shu’s book came about (12:17) When was the last time I did X (15:22) Asking second-order questions (18:46) Thoughts on taking notes (25:48) Learning to be passionate about your work (28:58) Pinecone - The first serial acquirer in Japan (44:00) The addressable market for serial acquirers in Japan (47:36) Finding the right managers to run the businesses (49:40) Are there more serial acquirers coming up in Japan? (51:23) Why Pinecone? (52:47) Decentralization at Pinecone (56:04) Applying the McKinsey principles for building a serial acquirer (01:01:18) Would Shu hire McKinsey consultants in the companies they acquire? (01:02:55) Book discussions (01:11:08) Job opportunities at Pinecone ————————————— Books Mentioned The McKinsey Edge - Shu Hattori The Outsiders - William Thorndike The Essays of Warren Buffett - Lawrence Cunningham 7 Habits of Highly Effective People - Stephen R. Covey Don’t Sweat the Small Stuff - Richard Carlson Outliers - Malcolm Gladwell David and Goliath - Malcolm Gladwell Influence - Robert Cialdini The Psychology of Money - Morgan Housel The Magic of Thinking Big - David J. Schwartz Immunity to Change - Robert Kegan and Lisa Laskow Lahey ————————————— Companies Mentioned Danaher LVMH McKinsey ————————————— More on Shu and Andrew Pinecone's website (English landing page) Shu's LinkedIn Andrew's LinkedIn ————————————— About the Podcast Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books ————————————— What is Investing by the Books? Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis. Visit the website: http://www.investingbythebooks.com/ Follow on Twitter/X: https://twitter.com/Investbythebook ————————————— What is Redeye? Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality. Visit the website: https://www.redeye.se/ Follow on Twitter: https://twitter.com/Redeye_ ————————————— Disclaimer Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

73 min

October 16, 2023

#50 Ronald Fagerfjäll: They Made Sweden Rich

Ronald Fagerfjäll is a legend within Swedish business journalism. Having written more than 30 books centered around Swedish companies and the people behind them, his knowledge of the topic is truly unique. We speak about the book “They Made Sweden Rich” (De gjorde Sverige rikt), which covers important entrepreneurs, businessmen, and investors during Sweden’s 20th-century industrial history. For more info about the podcast, go to the episode page and make sure to follow us on Twitter. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You’re also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team This episode was recorded on Sep 6, 2023. ————————————— Episode Chapters (00:00) Introduction by Eddie & Niklas (01:24) Ronald’s background (17:38) Why Ronald chose to write about Swedish business history (22:11) The Swedish business landscape in the early 20th century (27:32) Ivar Kreuger and the match empire (37:29) Why the holding company is a Swedish phenomenon (42:20) The connection between Swedish industrial companies and banks (46:10) The serial acquirers of the 60s (55:53) How Ronald manages to write a book a year (01:00:45) What books are Ronald most content with? (01:03:04) A book that Ronald wants to read but not write ————————————— Books Mentioned They Made Sweden Rich (De gjorde Sverige rikt) (Swedish) - Ronald Fagerfjäll Tisenhult: Grundaren, familjen och företagen (Swedish) - Ronald Fagerfjäll In Search of a True World View - Ronald Fagerfjäll Shape living for the better: the first 100 years of Electrolux - Ronald Fagerfjäll Den förlorade sonens återkomst: Peter Wallenberg (Swedish) - Ronald Fagerfjäll The Prince - Machiavelli The Dwarf - Pär Lagerkvist ————————————— Companies Mentioned Handelsbanken Investor Svenska Tändsticks AB (Swedish Match) Tisenhult-Gruppen General Electric Investment AB Promotion ————————————— About the Podcast Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books ————————————— What is Investing by the Books? Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis. Visit the website: http://www.investingbythebooks.com/ Follow on Twitter: https://twitter.com/Investbythebook ————————————— What is Redeye? Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality. Visit the website: https://www.redeye.se/ Follow on Twitter: https://twitter.com/Redeye_ ————————————— Disclaimer Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

67 min

September 18, 2023

#49 Paddy Hogan on What It Takes

Paddy Hogan is the head of investor relations at ORIX, a Japanese company with 35,000 employees active within finance, investments, life insurance, and banking. The episode is centered around the book “What It Takes”, by Stephen A. Schwarzman. It tells the story of how Stephen co-founded Blackstone and made it the world’s largest alternative asset manager, with more than one trillion dollars under management. For more info about the podcast, go to the episode page and make sure to follow us on Twitter. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You’re also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team This episode was recorded on May 25, 2023. ————————————— Episode Chapters (00:00) Intro by Niklas & Henrik (02:31) Welcoming Paddy (03:25) Introduction to “What it Takes” and Blackstone (05:55) Hiring the best people possible (07:42) About Orix (13:28) Thoughts on decentralization (20:44) Corporate frugality (25:28) Attracting long-term shareholders (32:15) The (cultural) foundation of Orix (38:16) Orix’s take on position sizing (41:00) Takeovers - Hostile and friendly (47:46) Buying companies without an exit strategy (50:20) Reading habits ————————————— Books Mentioned What It Takes - Stephen A. Schwarzman ————————————— Companies Mentioned Orix Fairfax Brookfield Blackstone Berkshire Hathaway ————————————— More on Paddy LinkedIn Orix Website ————————————— About the Podcast Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books ————————————— What is Investing by the Books? Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis. Visit the website: http://www.investingbythebooks.com/ Follow on Twitter: https://twitter.com/Investbythebook ————————————— What is Redeye? Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality. Visit the website: https://www.redeye.se/ Follow on Twitter: https://twitter.com/Redeye_ ————————————— Disclaimer Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

54 min

August 21, 2023

#48 Cole Smead on Money Masters

Cole Smead is a portfolio manager at Smead Capital Management, an investment advisor applying a differentiated value approach to its capital allocation processes. Cole is an avid reader and hosts the podcast “A Book With Legs.” In this episode, we discuss the classic title “Money Masters” by John Train. We talk about whether there is such a thing as a money mind, if good investors tend to be born poor, and explore the insight that businesses are always dying. For more info about the podcast, go to the episode page and make sure to follow us on Twitter. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You’re also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team This episode was recorded on May 17, 2023. ————————————— Episode Chapters (00:00) Introduction with Henrik Andersson (02:58) Welcoming Cole (06:52) Do some people have a “money mind”? (10:14) Are good investors born poor? (12:58) Money Masters by John Train (19:08) The chapter on T. Rowe Price (23:35) How to avoid falling for herd behavior (28:59) Businesses are always dying (32:52) Further lessons from T. Rowe Price (41:04) Identifying yourself with your investments (46:05) Why did Cole end up in the investment business? (50:34) Cole’s idols in investing (57:01) Applying lessons from marketing (01:02:11) The step-by-step approach to learning about a new industry (01:11:16) The most interesting aspects of today’s markets (01:14:45) Cole’s reading habits ————————————— Books Mentioned Money Masters - John Train Investing the Templeton Way - Lauren Templeton The Go-Go Years - John Brooks Richer Wiser Happier - William Green Once in Golconda - John Brooks Building a StoryBrand - Donald Miller The Frackers - Gregory Zuckerman Easy Money - Ben McKenzie The War That Made the Roman Empire - Barry S. Strauss Cloud Money - Brett Scott For Whom the Bell Tolls - Ernest Hemingway ————————————— Companies Mentioned Coca Cola Simplicity Patterns Wells Green Target Berkshire Hathaway Occidental Petroleum ————————————— More on Cole A Book With Legs Missives from Smead Capital Management Twitter ————————————— About the Podcast Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books ————————————— What is Investing by the Books? Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis. Visit the website: http://www.investingbythebooks.com/ Follow on Twitter: https://twitter.com/Investbythebook ————————————— What is Redeye? Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality. Visit the website: https://www.redeye.se/ Follow on Twitter: https://twitter.com/Redeye_ ————————————— Disclaimer Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

83 min

July 24, 2023

#47 Ian Cassel on Golf Is Not a Game of Perfect

Ian Cassel is the founder of MicroCapClub, co-author of the books about Intelligent Fanatics, and the CIO of Intelligent Fanatics Capital Management. In this episode, we talk about “Golf Is Not a Game of Perfect” by Bob Rotella. The book covers the mental habits used by professional golfers, an area that turns out to be a ripe hunting ground for valuable investing advice. For more info about the podcast, go to the episode page and make sure to follow us on Twitter. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You're also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team This episode was recorded on April 19, 2023. ————————————— Episode Chapters (00:00) Intro by Eddie & Niklas (02:26) How Ian started with investing (07:13) Golf Is Not a Game of Perfect (13:26) Adapting your strategies to the world around you (16:55) Rigidity vs. flexibility in the investment process (19:29) Accepting things outside of your control (25:51) Letting investments influence your strategy (31:37) Appreciating the position you’re in (36:11) The long versus the short game (42:27) Knowing when you know enough… (44:34) … and then knowing what to do (48:89) Learning about yourself through the market (51:39) Having productive distractions (55:13) Do investors age well? (58:32) Should you lower your expectations? (01:00:45) How to consider macroeconomics (01:03:55) Checking stock prices daily/Comparing yourself to others (01:07:52) The set-up at Intelligent Fanatics Capital Management ————————————— Books Mentioned Intelligent Fanatics - Sean Iddings and Ian Cassel Golf Is Not a Game of Perfect - Bob Rotella The Elements of Scoring - Raymond Floyd ————————————— More on Ian Twitter MicroCapClub Intelligent Fanatics Capital Management ————————————— About the Podcast Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books ————————————— What is Investing by the Books? Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis. Visit the website: http://www.investingbythebooks.com/ Follow on Twitter: https://twitter.com/Investbythebook ————————————— What is Redeye? Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality. Visit the website: https://www.redeye.se/ Follow on Twitter: https://twitter.com/Redeye_ ————————————— Disclaimer Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

77 min

June 26, 2023

#46 Vitaliy Katsenelson: Soul in the Game

Vitaliy Katsenelson is the CEO of Investment Management Associates (IMA), a value investing firm providing individual portfolio management. He is also the author of several books, including “Active Value Investing” and “The Little Book About Sideways Markets.” In this episode, we mostly discuss his latest addition, “Soul in the Game”. Go to the episode page and make sure to follow us on Twitter, where we suggest books and do giveaways. We love to hear your thoughts so please give us a rating/review in your podcast player! Also, feel free to share great authors, books, and investors you want to hear on the show. /Eddie & Niklas with team This episode was recorded on March 16, 2023. ————————————— Episode Chapters (00:00) Intro by Eddie & Niklas (01:55) How Vitaliy’s passion for investing started (03:53) Soul or Skin in the Game (05:21) A Parallel to Jiro Dreams of Sushi (07:32) Is it possible to have too much soul in the game? (12:54) Stoicism, philosophy, and investing (22:34) Once our art turns into a craft, it is time to move on (27:47) Vitaliy’s work at IMA (29:32) How to allocate your time (32:51) Size as the enemy to great performance (40:52) To see the long term, you need to survive the short term (46:52) Good reasons for selling a company (54:18) Where we are in the market cycle (01:02:30) Living in the present while planning for the future (01:06:45) Book discussions ————————————— Books Mentioned Active Value Investing - Vitaliy Katsenelson The Little Book About Sideways Markets - Vitaliy Katsenelson Soul in the Game - Vitaliy Katsenelson Skin in the Game - Nassim Nicholas Taleb Managing Oneself - Peter Drucker Behavioral Investing - James Montier The Little Book of Behavioral Investing - James Montier The Little Book that Builds Wealth - Pat Dorsey How to Think Like a Roman Emperor - Donald Robertson Guide to a Good Life - William Irvine ————————————— Companies Mentioned Silicon Valley Bank Qualcomm Meta ————————————— More on Vitaliy Twitter LinkedIn Investment Management Associates (IMA) The Intellectual Investor ————————————— About the Podcast Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books ————————————— What is Investing by the Books? Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis. Visit the website: http://www.investingbythebooks.com/ Follow on Twitter: https://twitter.com/Investbythebook ————————————— What is Redeye? Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality. Visit the website: https://www.redeye.se/ Follow on Twitter: https://twitter.com/Redeye_ ————————————— Disclaimer Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

70 min

May 29, 2023

#45 Paul Johnson and Paul D. Sonkin: The Enduring Value of Roger Murray

In our 45th episode, we are honored to speak to Paul Johnson and Paul D. Sonkin about their latest book “The Enduring Value of Roger Murray.” As the successor to Benjamin Graham at Columbia Business School, Murray (1911–1998) was a crucial figure in the history of value investing. Johnson and Sonkin are investment professionals and have been involved with the legendary investing program at Columbia Business School since the 1990s. The pair has also written “Pitch the Perfect Investment” and contributed to classics such as “The Most Important Thing” and “Value Investing: From Graham to Buffett and Beyond.” Go to the episode page and make sure to follow us on Twitter, where we suggest books and do giveaways. We love to hear your thoughts so please give us a rating/review in your podcast player! Also, feel free to share great authors, books, and investors you want to hear on the show. /Eddie & Niklas with team This episode was recorded on February 16, 2023. ————————————— Episode Chapters (00:00) Introduction (03:32) How Paul & Paul started investing in stocks (06:38) The Enduring Value of Roger Murray (11:34) Who was Roger Murray? (24:15) The Gap between Murray and Greenwald (43:11) How the value investing class has changed (46:44) Murray as an investor (49:43) Incorporating an economic outlook in your investment process (53:54) How to manage structural and cyclical changes (58:05) The risk=volatility debate (01:06:06) Does patience give you an edge? (01:09:35) Paul Johnson’s work outside teaching (01:14:15) Governance issues in small vs large companies (01:17:55) How to judge a management’s allocation skills (01:22:26) Paul Sonkin’s investment style (01:28:20) Book discussions ————————————— Books Mentioned The Enduring Value of Roger Murray - Paul Johnson & Paul D. Sonkin The Centennial - Columbia Business School Pitch the Perfect Investment - Paul Johnson & Paul D. Sonkin Security Analysis - Benjamin Graham Expectations Investing - Michael Mauboussin The Outsiders - William Thorndike Value Investing - Bruce Greenwald The Razor’s Edge - W. Somerset Maugham Of Human Bondage - W. Somerset Maugham The Valuation of Growth (Upcoming) - Paul Johnson & Paul D. Sonkin ————————————— Companies Mentioned Apple Alphabet Meta Kimball International Capital Cities Berkshire Hathaway ————————————— About the Podcast Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books ————————————— What is Investing by the Books? Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis. Visit the website: http://www.investingbythebooks.com/ Follow on Twitter: https://twitter.com/Investbythebook ————————————— What is Redeye? Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality. Visit the website: https://www.redeye.se/ Follow on Twitter: https://twitter.com/Redeye_ ————————————— Disclaimer Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

97 min

May 1, 2023

#44 Todd Finkle: Warren Buffett - Investor and Entrepreneur

In this episode, we speak with the knowledgeable Todd Finkle. Todd is a Professor of Entrepreneurship at Gonzaga University and the author of several books, including his latest addition: Warren Buffett - Investor and Entrepreneur. In our conversation, we explore Buffett as an entrepreneur, psychological biases, and whether academia and investing are compatible. For more info about the podcast, go to the episode page and make sure to follow us on Twitter. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You're also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team This episode was recorded on March 29, 2023. ————————————— Episode Chapters (00:00) Intro by Eddie & Niklas (01:14) Welcoming Todd (01:47) How Todd came across the world of investing (09:44) Why write another book on Warren Buffett? (17:31) The most surprising insights from researching Buffett (21:31) The definition of entrepreneurship (27:19) Buffett’s shift towards buying quality businesses (30:34) What Buffett looks at before buying a business (32:40) Is business quality more important than management? (35:16) Quantifying too much (37:31) Psychological biases (44:27) The link between academia and business success (47:00) Areas where Todd disagrees with Buffett (48:51) Book talk (51:44) Final remarks ————————————— Books Mentioned Warren Buffett: Investor and Entrepreneur - Todd Finkle The Warren Buffett Way - Robert Hagstrom ————————————— More on Todd Twitter Webpage on University LinkedIn Website ————————————— About the Podcast Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books ————————————— What is Investing by the Books? Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis. Visit the website: http://www.investingbythebooks.com/ Follow on Twitter: https://twitter.com/Investbythebook ————————————— What is Redeye? Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality. Visit the website: https://www.redeye.se/ Follow on Twitter: https://twitter.com/Redeye_ ————————————— Disclaimer Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

53 min

April 3, 2023

#43 Catherine S. Neal: Taking Down the Lion

Catherine S. Neal is a former attorney and an associate professor of business ethics and business law at Northern Kentucky University. She is also the author of Taking Down the Lion, which is the center of attention for this episode. The book explores the fall of Tyco International's CEO and Chairman, Dennis Kozlowski, who was convicted of stealing more than 100 million dollars from the company. For more info about the podcast, go to the episode page and make sure to follow us on Twitter. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You're also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team This episode was recorded on February 8, 2023. ————————————— Episode Chapters (00:00) Intro by Eddie & Niklas (00:21) Introduction to Catherine (04:13) Taking Down the Lion (11:18) Dennis Kozlowski (12:57) Why did Catherine write her book? (22:59) The most significant crimes that were committed (30:08) The world is driven by envy, not by greed (41:40) Dennis’ inability to manage details (49:05) Being both the CEO and the Chairman (54:24) Was Dennis treated unfairly by the media? (01:01:07) Red flags when it comes to corporate governance (01:15:16) What would Catherine change in the corporate world? (01:19:47) Dennis Kozlowski today (01:24:42) Book recommendations (01:25:22) Final remarks ————————————— Books Mentioned Taking Down the Lion - Catherine S. Neal The Smartest Guys in the Room - Bethany McLean Madoff Talks - Jim Campbell ————————————— Companies Mentioned Tyco International Procter & Gamble Intel Metlife Disney Enron ————————————— More on Catherine Website for Taking Down the Lion Twitter ————————————— About the Podcast Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books ————————————— What is Investing by the Books? Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis. Visit the website: http://www.investingbythebooks.com/ Follow on Twitter: https://twitter.com/Investbythebook ————————————— What is Redeye? Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality. Visit the website: https://www.redeye.se/ Follow on Twitter: https://twitter.com/Redeye_ ————————————— Disclaimer Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

88 min

March 6, 2023

#42 Avner Mandelman: The Advanced Sleuth Investor

In our second interview with Avner Mandelman, a former rocket scientist and hedge fund manager, we talk about his new book: The Advanced Sleuth Investor. By applying multidisciplinary thinking, he explores the benefits of sleuthing from the viewpoint of ten different professions. In essence, our talk is about how you can create your own exclusive data to outperform the market. For more info about the podcast, go to the episode page and make sure to follow us on Twitter. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You're also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you. /Eddie & Niklas with team This episode was recorded on January 3, 2023. ————————————— Episode Chapters (00:00) Intro by Eddie & Niklas (03:01) Who is Avner Mandelman? (03:58) Why write another book on sleuth investing? (09:16) System 1 and System 2 thinking (13:54) Ten perspectives on sleuthing (18:42) How Avner ranks the importance of the three financial statements (25:14) Sleuthing from the viewpoint of a chessplayer (31:33) Advice for a young investor (36:02) Sleuthing from the viewpoint of a physicist (42:07) Practical advice for Sleuthers (50:11) Picking stocks is only 30-40% of the investing process (01:06:22) How to build an empire as an investor (01:08:25) Book recommendations (01:10:04) Final remarks ————————————— Books Mentioned The Sleuth Investor - Avner Mandelman The Advanced Sleuth Investor - Avner Mandelman Thinking, Fast and Slow - Daniel Kahneman Summa de Arithmetica - Luca Pacioli Parallel Lives - Plutarch On Intelligence - Jeff Hawkins ————————————— More on Avner Twitter Youtube ————————————— About the Podcast Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books ————————————— What is Investing by the Books? Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis. Visit the website: http://www.investingbythebooks.com/ Follow on Twitter: https://twitter.com/Investbythebook ————————————— What is Redeye? Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality. Visit the website: https://www.redeye.se/ Follow on Twitter: https://twitter.com/Redeye_ ————————————— Disclaimer Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

73 min

February 6, 2023

#41 Jake Taylor on Deep Survival

Jake Taylor is a professional investor, fellow podcast host, author, and founder of the software Journalytic. For his second appearance on our podcast, we talk about the book Deep Survival and how his platform Journalytic can be used to think clearly, suppress irrational instincts, and become a better investor. Notice: We are taking on new exciting projects at Redeye, so starting from this episode, we will release shows monthly. We will keep producing interviews of high quality and are always delighted to hear your feedback. For more info about the podcast, go to the episode page and make sure to follow us on Twitter. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You're also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team This episode was recorded on January 23, 2023 ————————————— Episode Chapters (00:00) Intro by Eddie & Niklas (02:10) Who is Jake Taylor? (03:19) Surviving in the market and life (09:47) Lessons from a tragic story (14:15) Balancing risk and return (19:31) Going against your own rules (22:45) Learning from others or failing yourself? (27:24) Balancing optimism and pessimism (33:30) Being honest with yourself (36:46) How to declutter your mind (38:34) The importance of not always acting on instinct (42:12) Avoiding the sunk cost fallacy (46:20) Journalytic (58:20) Bringing it all together ————————————— Books Mentioned The Rebel Allocator - Jake Taylor Deep Survival - Laurence Gonzales The Dandho Investor - Mohnish Pabrai 100 Baggers - Chris Mayer The Rational Optimist - Matt Ridley Ten Global Trends Every Smart Person Should Know - Ronald Bailey Quit - Annie Dukes ————————————— More on Jake Twitter Journalytic Farnam Street Investments Value After Hours Podcast ————————————— About the Podcast Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books ————————————— What is Investing by the Books? Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis. Visit the website: http://www.investingbythebooks.com/ Follow on Twitter: https://twitter.com/Investbythebook ————————————— What is Redeye? Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality. Visit the website: https://www.redeye.se/ Follow on Twitter: https://twitter.com/Redeye_ ————————————— Disclaimer Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

62 min

January 24, 2023

#40 Our Top Investing Books

In this special episode, we speak with Mark Gandy about our favorite investing books. Mark is the host of The CFO Bookshelf podcast and a consultant helping CEOs and CFOs with business development and financial modeling. We discuss books that can help you understand financial statements, evaluate management, and judge the quality of a business. For more info about the podcast, go to the episode page and make sure to follow us on Twitter. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You're also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team This episode was recorded on January 3, 2023. ————————————— Episode Chapters (00:00) Intro by Eddie & Niklas (00:52) The start of our conversation (01:26) Eddie, Niklas, and Mark (03:08) How our passion for investing books started (06:42) How we find guests for the podcast (09:53) The value of investment books (14:36) The investment book list (30:41) The best books on Buffett (35:07) Book recommendations for someone who is new to investing (46:30) Books for understanding financial statements (51:35) The people aspect of evaluating a business (53:38) The last book (01:02:19) About Redeye and Investing by the Books ————————————— Books Mentioned The Intelligent Investor - Benjamin Graham Security Analysis - Benjamin Graham and David L. Dodd One Up on Wall Street - Peter Lynch Beating the Street - Peter Lynch Quality First Investing - Björn Fahlén The Investment Checklist - Micheal Shearn Once in Golconda - John Brooks Business Adventures - John Brooks The Go-Go Years - John Brooks Against the Gods - Peter L. Bernstein Fooled by Randomness - Nassim Nicholas Taleb Poor Charlie’s Almanack - Peter D. Kaufman Damn Right! - Janet Lowe The Snowball - Alice Schroeder The Warren Buffett Way - Robert G. Hagstrom The Making of an American Capitalist - Roger Lowenstein The Most Important Thing - Howard Marks Millionaire Teacher - Andrew Hallman The Little Book that Builds Wealth - Pat Dorsey Investors Manual - NAIC Investment Biker - Jim Rogers The Education of a Value Investor - Guy Spier Financial Shenanigans - Howard Schilit The Interpretation of Financial Statements - Benjamin Graham Warren Buffett and the Interpretation of Financial Statements - David Clark and Mary Buffett The Black Swan - Nassim Nicholas Taleb A Random Walk Down Wall Street - Burton G. Malkiel The Outsiders - William Thorndike Thinking, Fast and Slow - Daniel Kahneman Influence - Robert Cialdini The Complete Financial History of Berkshire Hathaway - Adam Mead The Five Keys to Value Investing - Dennis Jean-Jacques 100 Baggers - Chris Mayers ————————————— Other resources Berkshire Hathaway’s annual shareholder letters Howard Marks’ memos ————————————— More on Mark Twitter Website ————————————— About the Podcast Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books ————————————— What is Investing by the Books? Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis. Visit the website: http://www.investingbythebooks.com/ Follow on Twitter: https://twitter.com/Investbythebook ————————————— What is Redeye? Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality. Visit the website: https://www.redeye.se/ Follow on Twitter: https://twitter.com/Redeye_ ————————————— Disclaimer Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

66 min

January 9, 2023

#39 Gregory Zuckerman: The Man Who Solved the Market

Gregory Zuckerman is an investigative reporter at The Wall Street Journal and the author of several books. Since he joined The Journal in 1996, he has received the Gerald Loeb award three times. The focal point for our discussion is his book The Man Who Solved the Market, which tells the story of how Jim Simons launched the quant revolution and created the greatest money-making machine in financial history. For more info about the podcast, go to the episode page and make sure to follow us on Twitter. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You're also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team This episode was recorded on December 20, 2022. ————————————— Episode Chapters (00:00) Intro by Eddie & Niklas (02:33) How Gregory got interested in finance and journalism (10:28) Introduction to Rennaisance (13:50) Do what you love (17:50) Why Renaissance survived and others didn’t (20:49) The irony of emotions (23:26) Remaining humble (27:02) How Renaissance gets an edge in the market (31:09) The most durable inefficiencies (30:59) Employee compensation at Renaissance (41:42) Handling tougher periods (44:10) If he could, would Gregory invest in Medallion? (45:57) The performance of the fund after the book’s release (47:06) Pros and cons of quant investors (52:31) Gregory’s Modus Operandi (01:01:20) Book recommendations ————————————— Books Mentioned The Man Who Solved the Market - Gregory Zuckerman The Greatest Trade Ever - Gregory Zuckerman A Man For All Market - Ed Thorp Beat the Dealer - Ed Thorp ————————————— Companies Mentioned Renaissance Technologies ————————————— More on Gregory Twitter LinkedIn ————————————— About the Podcast Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books ————————————— What is Investing by the Books? Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis. Visit the website: http://www.investingbythebooks.com/ Follow on Twitter: https://twitter.com/Investbythebook ————————————— What is Redeye? Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality. Visit the website: https://www.redeye.se/ Follow on Twitter: https://twitter.com/Redeye_ ————————————— Disclaimer Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

64 min

Investing by the Books

About Investing by the Books

Episodes

#55 Edward Chancellor: Capital Returns

#54 Tobias Carlisle: The Acquirer's Multiple

#53 Todd Wenning on Lessons from the Titans

2023