Episode notes
Clay Finck chats with best-selling author, Gautam Baid. We cover the passionate pursuit of lifelong learning, how he achieved his dream of being a professional portfolio manager, why he puts the majority of his focus on high quality businesses, why India’s time has arrived, and much more.
Gautam Baid, CFA is the Managing Partner of Stellar Wealth Partners India Fund, a Delaware-based investment partnership which is available to accredited investors in the US. Gautam is also the Equity Advisor of Complete Circle Stellar Wealth PMS, a portfolio management service which is available to Indian citizens and NRIs globally. Both funds are modeled after the Buffett Partnership fee structure and invest in listed Indian equities with a long-term, fundamental, and value-oriented approach.
IN THIS EPISODE, YOU’LL LEARN:
00:00 - Intro
03:38 - Where Gautam’s passion for value investing and lifelong learning originated from.
07:07 - The realization that Gautam had to pursue his dream of managing money and investing in the stock market.
10:52 - The story of Gautam applying to over 1,300 jobs in the investment industry before landing one as a portfolio manager.
14:38 - How Gautam’s book got published by Columbia Business School and became an international best seller in seven countries.
18:43 - Gautam’s definition of a high quality business.
24:32 - Why Gautam allocates the majority of his portfolio to high quality businesses despite their richer valuations.
30:00 - The characteristics of a business that indicate it has high staying power.
31:06 - How Gautam identifies businesses that can earn super-normal profits.
34:04 - Gautam’s framework for selling stocks in his portfolio.
35:35 - The four stages of a company’s growth cycle.
37:14 - Why Gautam looks for opportunities in all areas of the stock market, including cyclicals, spin-offs, and special situations.
49:54 - Why it’s so important to think probabilistically instead of deterministically.
52:45 - Why forecasting the economy, the Fed, and interest rates is a fool’s errand for stock investors.
55:09 - Why humility is required to be a successful long-term investor.
59:17 - Why US-based investors should consider investing in Indian equities.
61:01 - Why Gautam believes that, “India’s time has arrived.”
64:51 - Long-term structural trends currently happening in India.
69:02 - Why Gautam believes that the incentives in the overall investment industry are broken.
72:40 - The differences Gautam has found between managing a fund and managing his personal portfolio.
75: 47 - Why lifelong learning is paramount to being a successful value investor.
76: 28 - How to create an environment that promotes learning.
78: 38 - Three investing and non-investing books Gautam recommends to our listeners.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Check out our newly released TIP Mastermind Community.
- Learn more about Gautam’s Fund – Stellar Wealth Partners.
- Learn more about Complete Circle Wealth.
- Check out The Joys of Compounding.
- Check out Clay’s review of The Joys of Compounding or watch the video here.
- Joel Greenblatt’s book, You Can Be a Stock Market Genius.
- Ed Chancellor’s book, Capital Returns.
- Fred Schwed’s book, Where are the Customers’ Yachts?.
- Terry Smith’s book, Investing for Growth.
- Charlie Munger ’s book, Poor Charlie’s Almanack.
- Peter Bevelin’s book, Seeking Wisdom.
- Michael Mauboussin’s book, More Than You Know.
- Check out our recent episode covering the Microcap Investing with Ian Cassel, or watch the video here.
- Follow Gautam on Twitter.
- Follow Clay on Twitter.
NEW TO THE SHOW?
- Check out our We Study Billionaires Starter Packs.
- Browse through all our episodes (complete with transcripts) here.
- Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
- Enjoy exclusive perks from our favorite Apps and Services.
- Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
- Learn how to better start, manage, and grow your business with the best business podcasts.
P.S The Investor’s Podcast Network is excited to launch a subreddit devoted to our fans in discussing financial markets, stock picks, questions for our hosts, and much more! Join our subreddit r/TheInvestorsPodcast today!
SPONSORS
- Invest in Bitcoin with confidence on River. It’s the most secure way to buy Bitcoin with 100% full reserve custody and zero fees on recurring orders.
- If you’re aware you need to improve your bitcoin security but have been putting it off, Unchained Capital‘s Concierge Onboarding is a simple way to get started—sooner rather than later. Book your onboarding today and at checkout, get $50 off with the promo code FUNDAMENTALS.
- Get your super sorted. Save money by consolidating multiple accounts, check out your investment options to see which is right for you, and see how extra contributions can make a big difference over time.
- Choose Toyota for your next vehicle – SUVs that are known for their reliability and longevity, making them a great investment. Plus, Toyotas now have more advanced technology than ever before, maximizing that investment with a comfortable and connected drive.
- Make investing in Short Term Rentals aka Air-BNBs simple, passive, and profitable with Techvestor. Listeners of We Study Billionaires get better terms by just mentioning “We Study Billionaires!” Sign up and book your call with their Investor Relations Team to get started today.
- Have the visibility and control you need to make better decisions faster with NetSuite’s cloud financial system. Plus, take advantage of their unprecedented financing offer today – defer payments of a full NetSuite implementation. That’s no payment and no interest for six months!
- Send, spend, and receive money around the world easily with Wise.
- Experience real language learning for real conversations with Babbel. Get 55% off your Babbel subscription today.
- Reach the world’s largest audience with Linkedin, the place to B2B. Plus, enjoy a $100 credit on your next ad campaign!
- Get farm-fresh, pre-portioned ingredients and seasonal recipes delivered right to your doorstep with America’s #1 meal kit, HelloFresh! Use code wsb50 for 50% off plus free shipping.
- Support our free podcast by supporting our sponsors.
HELP US OUT!
Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
