The investment strategy discussed in this week’s episode is diametrically opposed to my own value tendencies, but it still one that has done exceptionally well.
My guest is David Gardner, co-founder of the Motley Fool. He is unique in that he is both a pure investor–a true stock junkie–and an entrepreneur. His energy is remarkable. His positive vibes are something to behold. You’ll hear it over audio, but it’s ever more palpable in person.
Our conversation is about finding companies which are breaking rules in the right way and reshaping industries. David’s goal is to find these companies early in and hold them forever.
If you love investing, you are going to love this regardless of your prior beliefs. Please enjoy my conversation with David Gardner on rule breakers.
2:03 – (First question) – Among the experiments that David has run in his podcast, which one has he enjoyed the most
3:42 – A deep dive into the rule breaker mentality that David uses
3:52 – How his model may mimic venture capital early stage investing
7:22 – What helps you to not sell a rule breaker amid big drawdowns.
7:33 – Totally Absorbed
8:32 – FANG stocks
12:25 – List of criteria in picking rule breaker stocks…starting with top dogs and first movers
19:34 – Second criteria…visionary leadership and the traits David looks for in a leader
22:02 – Henry Cloud (author)
24:07 – Smart backing as part of that second criteria
26:16 – Third criteria – competitive advantage and moats
30:50 – Looking at the development of the Motley Fool brand and business
32:49 – As You Like it (Shakespeare)
39:29 – Looking at David’s writing and how it has evolved over the years
42:45 – The Wisdom of Crowds
43:33 – Back to criteria, the fourth one, price momentum
50:03 – Last criteria, something being overvalued and weigh that against the idea of whether a product or service is important based on whether people would miss it
1:01:21 – Looking at David’s process for finding a stock and analyzing it
1:07:38 – The importance of taking these criteria in concert and how you can see the power of overvaluation
1:10:39 – Board Game Agricola
1:10:54 – Boardgamegeek.com
1:14:38 – Kindest thing anyone has done for David