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41 - Science of Hitting Interview: How quality limits investing mistakes, portfolio management, and Microsoft ($MSFT)

The DIY Investing Podcast: Value Investing | Fundamental Analysis | Mental Models | Business Management

Release Date: 08/25/2019

42 - How to invest in a Health Savings Account (HSA) show art 42 - How to invest in a Health Savings Account (HSA)

The DIY Investing Podcast: Value Investing | Fundamental Analysis | Mental Models | Business Management

A health savings account is the best tax-advantaged account currently available for workers in the United States. Thus, it is important to have a plan and understanding of how to invest your HSA money and maximize the benefits of this unique tax shelter.

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41 - Science of Hitting Interview: How quality limits investing mistakes, portfolio management, and Microsoft ($MSFT) show art 41 - Science of Hitting Interview: How quality limits investing mistakes, portfolio management, and Microsoft ($MSFT)

The DIY Investing Podcast: Value Investing | Fundamental Analysis | Mental Models | Business Management

In this episode, I interview 'The Science of Hitting' an investor and writer for GuruFocus. Learn how quality businesses can reduce investing mistakes by limiting value traps.

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40 - When NOT to average down on an investment (Investing Rules) show art 40 - When NOT to average down on an investment (Investing Rules)

The DIY Investing Podcast: Value Investing | Fundamental Analysis | Mental Models | Business Management

Investing rules help to prevent mistakes and can function as outsourced knowledge from the world’s best investors. Allowing others to make mistakes and adapting their lessons is a cheat code that can help you become a better investor faster.

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39 - Market Expectations vs Your Investing Expectations show art 39 - Market Expectations vs Your Investing Expectations

The DIY Investing Podcast: Value Investing | Fundamental Analysis | Mental Models | Business Management

Investing expectations drive short-term changes in the market. However, your personal expectations of management and business performance will drive the strength of your conviction in a company. Don’t let Mr. Market dictate your investing decisions. Mr. Market’s price offers should only ever be seen as an opportunity, not a necessity to act.

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38 - Should you invest in Private Prisons? show art 38 - Should you invest in Private Prisons?

The DIY Investing Podcast: Value Investing | Fundamental Analysis | Mental Models | Business Management

The private prison industry in the United States is currently hated to an extreme. Opportunity could await as CXW and GEO offer 10%+ dividend yields.

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37 - Liquidity: Risks and Opportunities show art 37 - Liquidity: Risks and Opportunities

The DIY Investing Podcast: Value Investing | Fundamental Analysis | Mental Models | Business Management

Liquidity is important for the success of your personal finance journey and your investment portfolio. Learn about the risks and opportunities presented by liquidity. Access to low liquidity stocks is your greatest advantage as a DIY Investor.

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36 - What is Risk? Price Risk, Volatility, and Beta (Types of Investing Risk) show art 36 - What is Risk? Price Risk, Volatility, and Beta (Types of Investing Risk)

The DIY Investing Podcast: Value Investing | Fundamental Analysis | Mental Models | Business Management

What is Risk? There are many different types of investment risk. This episode focuses on the concept of price risk otherwise known as Volatility or Beta. All risks have two key elements: Uncertainty and Negative Events. The negative event of price risk is a decline in stock price below a company’s intrinsic value.

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35 - Shorter Holding Periods are better (Investing First Principle) show art 35 - Shorter Holding Periods are better (Investing First Principle)

The DIY Investing Podcast: Value Investing | Fundamental Analysis | Mental Models | Business Management

Investing First Principles are used to build the foundation for an investment and portfolio management strategy. All else equal shorter holding periods are better when you earn the same total return. Would you rather earn a 10% return in one year or ten years?

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34 - Companies with no debt are better than companies with debt (Investing First Principle) show art 34 - Companies with no debt are better than companies with debt (Investing First Principle)

The DIY Investing Podcast: Value Investing | Fundamental Analysis | Mental Models | Business Management

Investing First Principles are used to build the foundation for an investment and portfolio management strategy. Today’s first principle focuses on corporate debt. You should always prefer to buy stock in companies without debt compared to companies with debt, all else equal.

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33 - Low stock prices are better than high stock prices (Investing First Principle) show art 33 - Low stock prices are better than high stock prices (Investing First Principle)

The DIY Investing Podcast: Value Investing | Fundamental Analysis | Mental Models | Business Management

Investing First Principles are used to build the foundation for an investment and portfolio management strategy. Today’s first principle focuses on stock purchase prices. Buying stocks at low prices is better than buying stocks at high stock prices. The result is a higher margin of safety and a higher potential return.

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Show Outline: Interview with The Science of Hitting

The full show notes for this episode are available at https://www.diyinvesting.org/Episode41

Part 1: Background and Investing Process

  • Investing Background
  • Science of Hitting's Investing Process
  • Portfolio Management and Position Sizing
  • Evaluating Corporate Management
  • Capital Allocation
  • Advantages and Disadvantages of being a DIY Investor
  • Investing Mistakes and how to avoid them
  • How to judge your investment success

Part 2: Example Investment - Microsoft (MSFT)

 

Self-written Bio:

 

"I'm a value investor with a long-term focus. My goal is to make a small number of meaningful decisions a year. In the words of Charlie Munger, my preferred approach is "patience followed by pretty aggressive conduct." I run a concentrated portfolio - a handful of equities account for the majority of its value. In the eyes of a businessman, I believe this is sufficient diversification." - Science of Hitting (GuruFocus)