The most successful investors in the world share a common trait: they are unconventional. When a young fund manager first encountered Bill Miller, he declined to shake hands. Instead, he made direct eye contact and boldly stated, “I’m going to beat you, man.”
William Green joins us to share insights gained from decades of discussions with investment icons—ranging from the intensely competitive to the deeply reflective. These dialogues highlight that achieving success goes beyond mere strategies; it involves self-awareness and leveraging personal strengths.
The top investors are independent thinkers who approach problems differently. They are prepared to appear odd, feel isolated, and stray from the mainstream.
Templeton exemplified this during World War II. Following Germany's invasion of France and the subsequent market downturn, he purchased 104 stocks priced under $1, which included 37 companies that were bankrupt. His contrary approach resulted in a fivefold return when the markets recovered.
However, Green stresses that this pursuit is not solely about wealth accumulation. His extensive interviews uncover profound insights about leading a fulfilling life:
— Successful investors concentrate on what they can control. While they cannot forecast market movements, they can regulate their behavior and emotions.
— They value simplicity. Jack Bogle recommended investing in low-cost index funds instead of getting caught up in complicated strategies.
— They comprehend risks and probabilities. Howard Marks contemplates, “What will be the outcome if I’m incorrect?” before making choices.
— They capitalize on their strengths. Charlie Munger advises that if you’re 5’3″, pursuing a career in professional basketball might not be wise.
— They maintain a lifestyle below their means. As investor Tom Gaynor points out, “If you’re living within your means, you’re already wealthy.”
Green introduces a practical concept called HALT PS — it advises against making significant decisions when you are Hungry, Angry, Lonely, Tired, in Pain, or Stressed. This principle extends beyond investing into everyday life.
The discussion delves into how to foster resilience in anticipation of market downturns through healthy habits, self-awareness, and readiness. Green mentions that many prosperous investors engage in meditation and read broadly across different fields.
Even the greats make missteps. Bill Miller witnessed his assets plummet from $77 billion to $800 million during the 2008 financial crisis. Yet, he recovered by adhering to his core principles and learning from his setbacks.
Green’s essential takeaway? Shift your focus from merely accumulating wealth to crafting an "anti-fragile" life that aligns with your values and strengths. The finest investors excel not only in financial gains but also in building meaningful and purposeful lives.
For more insights from William Green, visit williamgreenwrites.com or listen to his podcast, Richer, Wiser, Happier, available on the We Study Billionaires network.
Timestamps:
(Note: Timestamps may vary on individual devices due to dynamic advertising lengths, and the provided times are approximate and could differ by several minutes.)
3:00 – Encountering Sir John Templeton in the Bahamas
5:12 – Templeton’s stock strategy during the WWII market crash
14:00 – Distinguishing wisdom from survivorship bias in investment narratives
17:38 – The rationale behind great investors favoring index funds
28:42 – Valuing freedom over the maximization of wealth
38:31 – Bogle’s philosophy focused on client interests
51:32 – The importance of living modestly during market fluctuations
53:37 – HALT PS conditions leading to unwise decisions
1:01:07 – Employing data for improved decision-making
1:07:01 – Bogle’s focus on straightforward investing
1:10:36 – Danoff’s “stocks adhere to earnings” principle
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The most successful investors in the world share a secret: they are unconventional.