2024-09-29
1 小时 2 分钟On today’s episode, Kyle Grieve discusses the investing philosophy and concepts from the Nomad Investment Partnership, how they created their fund structure to align themselves with partners, why they settled on inactivity, the powerful effects of businesses that share profits with customers rather than shareholder, how they ended up focusing on the scale economies shared business model, how they dealt with commitment bias, and a whole lot more! IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 04:17 - How Nomad Investment Partnership created their ground rules to succeed in the long term 05:37 - The rare and unconventional way that Nomad wanted to be evaluated by their partners 09:13 - Why inactivity only works with certain businesses, and NOT all businesses 13:48 - The extraordinary returns of Costco, Amazon, and Berkshire Hathaway since the depths of the GFC, and a great insight into what Nomad said about that particular time 15:26 - Why Nomad focused on the scaled economics shared business model 20:29 - How Nomad utilized the concept of a "cone of uncertainty" to better understand risk and help with position sizing 29:12 - Why a deep understanding of a business earlier than the market is so beneficial and allows you to have outsized position sizes that can continue growing at market-beating returns 31:46 - Why your next best investing opportunity might already be in your portfolio 40:41 - Specific questions to ask to help you utilize destination analysis for long-term holdings 43:03 - The four most powerful mistakes that Nick and Zak observed Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members. Read Nick and Zak's Adventures in Capitalism by The Rational Cloner. Follow Kyle on Twitter and LinkedIn. Check out all the books mentioned and discussed in our podcast episodes here. Enjoy ad-free episodes when you subscribe to our Premium Feed. NEW TO THE SHOW? Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok. 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. SPONSORS Support our free podcast by supporting our sponsors: River 7-Eleven Toyota Connect Invest Bluehost TastyTrade The Bitcoin Way Public Fundrise American Express Onramp Miro Facet SimpleMining ReMarkable Vanta Shopify HELP US OUT! Help us reach new listeners by leaving us a rating and review on Spotify! 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! Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
You're listening to Tip Nick and Zach.
Headed the Nomad Investment partnership from 2001 to 2013, where they generated legendary returns.
During this period, they turned $1 of their partner's money into $10.21 before fees, an incredible 20.8% compounded annual gain.
And due to their partnership structure and minimal fees, their partners saw a large portion of these gains go to them rather than to just Nick and Zach.
So today I'm ecstatic to share my learnings from the book Nick and Zach's Adventures in Capitalism by the Rational Cloner.
This book compiled the information from their shareholders letters into thematic chapters.
The author gave very concise but clear summaries of the overarching ideas, then allowed Nick and Zach to expand on each concept in their own words using excerpts from the partnership letters.
Today, I'll cover many of the most insightful concepts from the book.
Nick and Zach have one of the biggest affinities to quality that I've ever seen.
Quality permeates their entire investing philosophy, from finding quality businesses to finding quality business cultures and quality management.
But it goes even deeper.
They eventually sought out to look for businesses of such a quality that attempted to maximize their relationships with their customers through returning excess profits to their loyal users.
This is why they prized the scale economy shared business model.
But when you continue to peel back the layers, quality surrounded more than just purely the investing process.
The way the partnership was carefully crafted was a direct result of their commitment to quality.
The partnership was created to deliver returns to the partners and not as a vehicle to collect fees.
While this may seem trivial to the average person, listeners of this show will realize how rare it is for a financial institution to act this way.
One of the biggest insights I had while researching this episode was in regards to a simple set of words they used to better understand concepts like risk management, certainty, outcome, position, sizing, and conviction.
This was a mental model that they called their cone of uncertainty.
I know you will enjoy learning more about how investors can use this concept to improve their decision making, decrease risk, manage conviction, aid in concentration, and a number of other benefits.