TIP130: MASTERMIND DISCUSSION 1ST QUARTER 2017

W/ TOBIAS CARLISLE, HARI RAMACHANDRA, & CALIN YABLONSKI

19 March 2017

Every quarter the Mastermind Group from The Investor’s Podcast gets together to discusses their latest investment ideas. In this episode, the group covered Warren Buffett’s letter to Shareholders.  Since Buffett’s shareholder letters are only released once a year, it’s exciting for many value investors to scour through his new thoughts and ideas.  This year, Buffett discusses ETFs and numerous other topics.

Throughout the discussion, the group has various takes on why Berkshire is holding such a large cash position while also cover the return they would expect to receive by owning Berkshire Stock today.  Later in the show, Preston talks about two critical lessons he learned from Bill Miller and Edward Thorp while discussing credit cycles.  In general, the group had a fun conversation about various value investing topics in the first quarter 2017.

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IN THIS EPISODE, YOU’LL LEARN:

  • If Charlie Munger thinks it’s better to invest in China than the US.
  • If Warren Buffett is winning his $1M cash bet against hedge funds.
  • Why Warren Buffett’s is holding $86B in cash.
  • Why index funds are mispricing individual stocks.
  • Why Bill Miller thinks the stock market could easily go higher.

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

Preston Pysh  0:00  

We Study Billionaires and this is episode 130 of The Investor’s Podcast. 

Intro  0:05  

Broadcasting from Bel Air, Maryland, this is The Investor’s Podcast. They’ll read the books and summarize the lessons. They’ll test the waters and tell you when it’s cold. They’ll give you actionable investing strategies. Your hosts, Preston Pysh and Stig Brodersen!

Preston Pysh  0:28  

Hey, how’s everybody doing out there? This is Preston Pysh. I’m your host for The Investor’s Podcast. And as usual, I’m accompanied by my co-host Stig Brodersen out in Seoul, South Korea. 

We have assembled the crew our MasterMind Group for the first quarter of 2017. We have Calin Yablonski up in Calgary, Canada. Is it cold up there, Calin? How’s your weather there?

Calin Yablonski  0:51  

We had a Chinook this week. So it wasn’t too bad.

Preston Pysh  0:54  

We got Toby Carlisle out in sunny California. How are you doing, Toby?

Tobias Carlisle  0:59  

I’m doing well. It’s cold here.

Preston Pysh  1:03  

I’m sure that 70 degree weather is just brutal.

Calin Yablonski  1:06  

I would trade you your cold.

Preston Pysh  1:11  

Of course, we have Hari Ramachandra up in Silicon Valley in California. How you doing. Hari?

Hari Ramachandra  1:16  

Not sunny here too. It’s cloudy and rainy.

Preston Pysh  1:20  

Oh man. All right. So if you’re joining us for the first time and you’re not familiar with our MasterMind Group, so Calin Yablonski s a search engine optimization expert living up in Calgary. Toby Carlisle has his own financial company. He does all sorts of things. He’s the master of value investing. He can tell you everything you ever wanted to know about Graham, Dodd, Warren Buffett, and all that stuff. And you’ll find that out real quickly when you listen to the some of his comments here. Then Hari Ramachandra, he’s an executive at LinkedIn out in Silicon Valley. He gives us all the good scoop on what’s happening out there in the valley. So great to have you guys here with us again.

I think, Calin, you got the first topic you want to talk about. So go ahead and take it away.

Calin Yablonski  2:00  

Yeah, sure. So I just got finished reading Warren Buffett’s 2016 letter to shareholders. And I thought that we might kick it off by talking about some of the content within his letter. I had four topics, but one that I really wanted to touch on right out of the gate, and it’s within the first two or three pages of the letter, is a comment that he made about economic skies filling with rain clouds. Once every century, it rains down gold, and that during that time, you need to be prepared with what did he call it a washtub or a teaspoon. Berkshire Hathaway has that washtub or more accurately, probably like an Olympic-sized swimming pool, if you look at all the cash that they have on their balance sheet. I just wanted to kind of open it up with that statement, because I think it’s quite indicative of the time that we’re in. So I kind of wanted to open it to the group and see what your thoughts on that were.

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