Mike God, Josh, Ben Graham discussed on Capital Allocators


When did you start writing your block? I started writing in twenty fourteen maybe. Do you think of it as a theme? It'll. Yeah, it is sure it is. And most of everything that I ride just basically comes down to investing. Really hard. And I think somehow people still underestimate that. So that is certainly a common theme through everything that I read about an headed that turn into the idea for writing a book. So I said to Josh one day, I have an idea. I'm gonna write a book about the best investors and their single best investment ever. And he said, no, no, no. The best investors and our worst investments ever. I I was was like, like, oh. oh, dammit, you're right, of course is so obvious and now is it I latched onto it right away and I got going and headed. You think about the process? I never done anything like this. I was kicked out of college twice. I don't. I don't have. I never had the attention span to really put my my head to the grind. I'm push Bush that line, but so it was. It was just me going to the coffee shop every weekend and my baby. I just been born. So I mean, I guess I was like a convenience get out of the house, but it was probably like almost a year and a half just every weekend, maybe halfway through three quarters. I start to get frustrated because I was started from scratch with every chapter and I was reading both that I had already read and reading with purpose, not just skimming looking for facts. And then I would have ten thousand words of notes that I would have to cut down to three thousand word chapter entertaining. I knew at the time that I would look back with memories and I will and and I am, but it was. It was work. I looked at this book through the lens of the average person, so I can't teach. Injures anything. You know what I mean? Like they know far more than I ever will about how businesses or value and stuff like that. But I always have the average person in mind. Whenever I'm writing, I'd love to dive into some of the stories and some of the chapters, and we just sort of go through what you learned along the way to why don't we start at the top with Ben Graham. The point of that chapter was just there are limits value investing. You could be the best business analysts in the world, and you might have a great long term track record, and things might be okay, but there are limits to value investing. Obviously his returns were good, but they were not like extraordinarily good. Now he did beat the Mark by almost two percent a year for decent Monto time said they were very good. Don't get me wrong, but they weren't like whole Mike God, and he got crushed in the depression like everybody did. But what was interesting about him in particular that he was positioned pretty conservatively going to the crash, but things got so cheap where businesses were worth more dead than alive because there was a real question like worthies business going to exist. Any. So he went an early and he couldn't resist values and he got destroyed that notion of kind of catching a falling knife. We all like to think we can pick the price at the bottom. Pick the manager at the bottom, whatever it is. I did a ton of that. And one of the reasons why confidence, right? This book, like who the hell am I to to write a book about mistakes that all these giants have made, but I made a lot of them and now I didn't. I never blew up or anything, but I caught so many fall knives. I bought stocks the fifty two week, low list, like I did the opposite of what you're supposed to be doing because it's very tempting, right? You think that Stockton from ninety two forty s. cheap. Well, maybe, but maybe there's a really good reason why it's now. David Einhorn who said the way the way psychos down. Ninety percent goes down eight percent and then gets cut in half. Yup. Yeah, tough. How about Jesse Livermore? Yeah. So this was my path in discovering the markets. The first book that I read was the intelligent investor. I was so excited..

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