Kyle Grieve and Robert Hagstrom discuss Warren Buffett's early investing mistakes, the advantages of GEICO's insurance float for Buffett, the outperformance of low turnover portfolios, the mental model of looking at stocks as abstractions, Warren Buffett's competitive advantage of thinking long-term, modern portfolio theory's history and influence today, the importance of focusing on certainties in investing strategy, and more! Robert Hagstrom is the Chief Investment Officer at EquityCompass and the Senior Portfolio Manager of the Global Leaders Portfolio. He previously worked at Legg Mason Capital Management. He is the author of 10 books, including "The Warren Buffett Way," which has sold a million copies and is published in 18 different languages. IN THIS EPISODE YOU’LL LEARN: 00:00:00 - Intro 00:00:51 - Details on Warren's mistakes on Berkshire Hathaway (textile mill) and subsequent mistakes with the Dexter Shoe acquisition 00:07:14 - Why low turnover portfolios tend to outperform 00:12:23 - Why you can outperform the market over the long term while underperforming the market 50% of the time 00:15:21 - The characteristics required to outperform the market 00:17:48 - Benjamin Graham's two most influential concepts Warren still abides by today 00:22:33 - How Warren Buffett has evolved his investing methods while staying true to his deeply held principles 00:34:39 - The importance of thinking of stocks as abstractions 00:45:28 - The history of modern portfolio theory and why it's so pervasive today 00:57:02 - Why we should spend our investing time thinking about business rather than macroeconomics 01:11:27 - The single most important characteristic that has produced so much of Warren Buffett's success 🤝 Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members: https://theinvestorspodcast.com/mastermind 🏡 Make more from your vacation home by doing less. Partner with Vacasa today. https://vacasa.com/ 📈 Learn to invest like legend investors do — from the company that has interviewed them. Use YOUTUBE15 to get 15% off! https://theinvestorspodcast.podia.com/how-to-get-started-with-stocks 💰Click here to download your FREE guide to Stop Worrying About Your Finances In 4 Simple Steps: https://www.theinvestorspodcast.com/subscribe-youtube/ ▶️ RELATED EPISODES: - What I’ve Learned From Warren Buffett & Charlie Munger w/ Chris Davis: https://youtu.be/Oeo66H4lM-g - Berkshire Hathaway Annual Shareholders Meeting 2024 | Warren Buffett Q&A Key Highlights: https://youtu.be/2wyAStOdnO4 - How to Value Berkshire Hathaway 2024 w/ Chris Bloomstran: https://youtu.be/Xd2rtzBVmx8 - Unpacking The Money Mind w/ Robert Hagstrom: https://youtu.be/_bR8fNmaS7Y - Inside The Ultimate Money Mind: Investing Like Warren Buffett w/ Robert Hagstrom: https://youtu.be/aVkuIAJ1nTM 🎧 Listen to our episodes here: https://open.spotify.com/show/28RHOkXkuHuotUrkCdvlOP 🖊️ Access the transcript and learn more about the guest here: https://www.theinvestorspodcast.com/episodes/deep-diving-into-the-warren-buffett-way-w-robert-hagstrom/ 📖  BOOKS MENTIONED: - The Warren Buffett Way by Robert Hagstrom: https://amzn.to/3Kiy5Ia - The Warren Buffett Way, 30th Anniversary Edition by by Robert Hagstrom: https://amzn.to/3Vj7elu Disclosure: Some of the links above are affiliate links that we may earn commission from. This helps keep our show going! 😀 💡 OTHER RESOURCES - Seeking Alpha is a crowd-sourced content service for financial markets. Take control of your financial future — Use our link here for a 14-day free trial: https://www.sahg6dtr.com/59QC8Z/R74QP/ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ABOUT OUR SHOW 🎙  On We Study Billionaires, we interview and study famous financial billionaires including Warren Buffett, Bill Gates, and Ray Dalio. We teach you what we learn and how you can apply their investment strategies in the stock market. 🌍 Website: https://www.theinvestorspodcast.com/we-study-billionaires/  📝 Help us understand our audience better so we can create a more intentional user experience by answering this survey! https://www.theinvestorspodcast.com/survey2023-youtube ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ 📚OUR FREE INVESTING COURSES/RESOURCES https://www.theinvestorspodcast.com/tip-academy/ 📊TRY OUR STOCK INVESTING TOOL: TIP FINANCE https://www.theinvestorspodcast.com/tip-finance/ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ❗ DISCLAIMER: This show is for entertainment purposes only. Before making any decisions consult a professional. This show is copyrighted by The Investor’s Podcast Network. Written permission must be granted before syndication or rebroadcasting.