The Education of a Value Investor Guy Spier

3 Main Ideas to Gain Success

Compounding Good-will

  • Handing gifts to doorman, writing notes to strangers (over 30K in 8+ years)
  • Not being worried about short-term returns, but compounding of little things with no expectations of results in the future (giving)
  • These little good deeds led Guy to meet important people in his life that made him the success he is today

Power of Authenticity

  • Be truthful to your own beliefs and passions

The Idea of Resonance

  • Analogy of creating a small impact in bath tub and see the waves resonate throughout
  • Interpretation of this is to have a small idea that can resonate with a group that think on the same wavelength and have that resonate to more people/groups that eventually it’ll become an idea with a large following behind it

Checklist for Investing

  1. Stop checking the stock price
  2. If someone tries to sell you something – don’t buy it
  3. Don’t talk to management
  4. Gather investment research in the right order
  5. Discuss investment ideas only with people who have no axe to grind
  6. Try not to trade when the market is open
  7. If a stock tumbles after you buy it, don’t sell it for two years
  8. Don’t talk about your current investments

Other Notes

  • Background of Guy Spier was that he worked for a firm no different than the Wolf of Wall Street. After 18 months of hating the work, he finally quit but ended up unemployable because his experience tainted him in the industry
  • Tony Robbins helped Guy get through the slump
  • Tool of success if you can recognize your own weaknesses and are honest about accepting the reality of those weaknesses, then you can start doing something about them
  • 3 types of people. Takers and matchers, you want to de-emphasize in your life. Spend all your time that you can around givers.
  • Regarding how much cash you have hold in your portfolio at anytime. Guy’s thought here is that it’s a waste of braincells, and it’s not about how much cash you have deployed but more so focus on deploying cash on undervalued stocks
  • Price doesn’t matter on intraday or short period movements as long you’re a true value investor. The target is 2X+ over a long duration of time if the thesis is correct
  • Indexes are great investments, as long you’re picking the right indexes. Example of this is non equally weighted indexes by market cap. Therefore, there’s a skew to large growth companies that might not perform in the long run.
  • Recommends article written by Warren Buffet: “The Super Investors of Graham and Doddsville”
  • Focus on the internal scorecard of yourself and not the external perception of who you are
  • If you’re dealing with envy, there is a critical issue with your life and you need to identify it and fix it. For Guy, it was the envious of the rich and a major part of his life that was fueling it was living in New York.