Tobias Carlisle - Warren Buffett, Sun Tzu and The Ancient Art of Risk-Taking | #600
Today’s guest is Tobias Carlisle, founder of Acquirers Funds and serves as portfolio manager of the firm’s deep value strategy. He’s just released a book called Soldier of Fortune: Warren Buffett, Sun Tzu and the Ancient Art of Risk-Taking. In today’s episode, Toby starts by discussing the current valuation landscape and the challenge for small cap investors. Then he explores the intersection of Warren Buffett’s investment philosophy with Sun Tzu’s teachings. He walks through notable investment case studies, including General Re, Burlington Northern and Japanese trading houses. The case studies all convey the significance of patience, strategic thinking, and the pursuit of asymmetric opportunities in investing, while also addressing the psychological aspects that influence investor behavior.
Key Points
- Buffett's investment in General Re was a strategic move to diversify Berkshire's holdings without incurring a massive tax bill, illustrating the importance of avoiding ruin and preserving capital.
- Buffett's purchase of Burlington Northern at the bottom of the market highlighted his ability to capitalize on favorable conditions, including tax code changes and low interest rates, to make a high-return investment in a capital-intensive business.
- Buffett's investment in Japanese trading houses, funded by issuing zero-yield yen-denominated debt, showcased his skill in creating an arbitrage opportunity that generated substantial dividend income regardless of the trade's ultimate success.
Follow Tobias: Website; LinkedIn; X
Resources: The Acquirers Podcast Soldier of Fortune: Warren Buffett, Sun Tzu and the Ancient Art of Risk-Taking
Chapters
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| 26:33 | |
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| 42:30 |
Transcript
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