How to Build Enduring Wealth w/ Guy Spier (RWH042)

William Green chats with renowned hedge fund manager Guy Spier, who has run the Aquamarine Fund since 1997. Guy talks about compounding wealth over decades, lessons from Warren Buffett, and his own mistakes, how to succeed by avoiding poor investment behavior, building the right relationships, and recognizing our weaknesses.
IN THIS EPISODE, YOU’LL LEARN
00:00:00 - Intro
00:01:09
- Why it’s so intense for Guy Spier & William Green to collaborate.
- How telling the truth changed Guy’s life.
- Why the Global Financial Crisis terrified him.
00:22:42
- Why it’s hard to invest rationally in the real world of chaos & confusion.
- How Guy deals with his emotions when making investment decisions.
- Why his default position is to hold his stocks indefinitely & resist meddling.
00:37:06
- Why he didn’t sell his stake in Alibaba.
- Why he’s pleased with & disappointed by his investment returns.
- How excessive risk destroyed a fund manager he once knew.
00:55:39
- What Guy learned from investing in a company that went bankrupt.
- Why his mission is long-term compounding without catastrophe.
- What the fastest skiers can teach us about success & survival.
01:02:53
- What we can learn from Warren Buffett about financial resilience.
- What dumb investment behavior Guy Spier strives to avoid.
- Why we should be especially wary of leverage.
01:09:28
- What type of companies he shuns.
- Why good relationships are a key to financial & personal success.
- Why it’s vital to find “friends along the path” who support us emotionally.
01:36:05
- Why it’s helpful to shine a light on our own weaknesses.
- How he handles painful, contentious conversations.
- How to engage with people whose beliefs & experiences differ from ours.
02:20:29
- What role money does-or doesn’t-play in a rich & meaningful life.
- What Guy learned from Warren Buffett’s exercise of writing your own obituary.
- How reading great literature can make you wiser & happier.
🤝 Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig and the other community members: theinvestorspodcast.com/maste...
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▶️ RELATED EPISODES:
- Investing Prudently In Perilous Times w/ Guy Spier: • Investing Prudently In...
- 5 Life Lessons from Guy Spier | The Education of a Value Investor: • 5 Life Lessons from Gu...
- The Education Of A Value Investor By Guy Spier: • The Education Of A Val...
- Celebrating Charlie Munger w/ Mohnish Pabrai, Tom Gayner, Joel Greenblatt, & Chris Davis: • Celebrating Charlie Mu...
- What I’ve Learned From Warren Buffett & Charlie Munger w/ Chris Davis: • What I’ve Learned From...
- How To Be Happy, Calm & Focused w/ Tsoknyi Rinpoche & Daniel Goleman: • How To Be Happy, Calm ...
🎧 Listen to our episodes here: link.chtbl.com/TIP-RWH
🖊️ Access the transcript and learn more about the guest here:
- www.theinvestorspodcast.com/r...
- www.theinvestorspodcast.com/r...
📖 BOOKS MENTIONED:
- The Education of a Value Investor by Guy Spier: amzn.to/3Vih2wM
- Richer, Wiser, Happier by William Green: amzn.to/3O7gkOg
- Gandhi: An Autobiography by Mahatma Gandhi: amzn.to/3Tegp4C
- Ergodicity by Luca Dellanna: amzn.to/3TgYnP7
- Power vs Force by David Hawkins: amzn.to/3T9D6a2
- The Developing Mind by Daniel Siegel: amzn.to/3vbqNC5
- Doing Imago Relationship Therapy in the Space-Between by Harville Hendrix: amzn.to/3IAC9Te
- In Search of Lost Time by Marcel Proust: amzn.to/4ceRGpp
Disclosure: Some of the links above are affiliate links that we may earn commission from. This helps keep our show going! 😀
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🌍 Website: www.theinvestorspodcast.com/r...
⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤
❗ 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.

[@WeStudyBillionaires]

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[@leonardhutchingsDownDirty]

Real Deal Here

[@Darcy20003]

Listened to this multiple times already, great conversation and I love the way you both speak, elaborate, Authentic and informative in so many ways.

[@milmac5052]

Two absolutely best human beings and great minds. Very informative piece. Thanks.

[@WeStudyBillionaires]

Appreciate the support! 🙏

[@ngzixian2921]

Guy and William, hearing this all the way from Singapore. thanks for this beautiful conversion. i loved the part where Guy’s funds could trapped in Bears and it just reminds us that, at any given moment, our lives could dive into entropy. and i really love the ambience of podcast :) looking forward to part 2

[@WeStudyBillionaires]

Glad you enjoyed the interview! To clarify, we uploaded the full version here on KZbin and divided it into 2 parts for the podcast version. Thank you so much for watching! ♥

[@RicherWiserHappier]

Many thanks! Much appreciated.

[@gabrielmourasegurado]

What a treat of an episode! Guy’s book did a lot for me and many others so thanks William for putting in those intense 3 months in it!

[@RicherWiserHappier]

Many thanks!

[@bruce9854]

Loved it as well. Great conversation!

[@WeStudyBillionaires]

Much appreciated! 🙏

[@RicherWiserHappier]

Thanks so much,@@bruce9854 -- warm wishes, William

[@PradeepKanwar]

Brilliant & touching. Better understood by those with similar age & experiences

[@WeStudyBillionaires]

Glad you liked the episode! 🙏

[@AS-yg5dt]

Enlightening discussion - on investing, relationships, life and so much more - thank you both for being so open and candid. A real gem 👍🏼🙏🏽

[@WeStudyBillionaires]

Wonderful! 🙌

[@AmArJoT0o]

Thanks for sharing this conversation:)

[@WeStudyBillionaires]

Our pleasure! ♥

[@value_investing]

Really enjoyed the talk while you two besties just sitting there chatting away. One of the greatest things about Guy is that in a world where almost everyone wears some sort of mask, he is the one who strives to remove all masks and be true to others, and most importantly, to himself. You're truly respected!

[@WeStudyBillionaires]

Thank you for the kind words! 🙏

[@obrYo]

Thank you both so much for this. It was a pleasure to listen to.

[@RicherWiserHappier]

Thanks so much. That's great to hear. Warm wishes, William

[@WeStudyBillionaires]

Our pleasure! 🎉

[@scottinguito5997]

Wow, this is far more than investing advice. It's wisdom for life. "Now that you have money, are you going to have money complicate your life or simplify your life?"

[@WeStudyBillionaires]

Thank you so much! 💡

[@royjones59344]

Really enjoyed the video. Creating an environment in which you can operate optimally is a great insight.

[@RicherWiserHappier]

Many thanks! Warm wishes, William

[@WeStudyBillionaires]

Glad you liked it! 💡

[@CompoundingwithGuyMatt]

Wide ranging conversation. Thanks for sharing! /G

[@WeStudyBillionaires]

Our pleasure! 🙌

[@RicherWiserHappier]

Thanks for listening! Warm wishes, William

[@henrybuonaparte]

Great long form content! Thank you!

[@RicherWiserHappier]

Thanks a lot!

[@WeStudyBillionaires]

Glad you liked it! 💯

[@lulo06]

Thank you both for sharing life wisdom. I cant help but laugh when I see that after this long discussion where both gentlemen are truly opening themselves to the audience, most comments are about the return on investment.

[@RicherWiserHappier]

Many thanks, @lulo06 for this thoughtful comment! Warm wishes, William

[@WeStudyBillionaires]

Thank you for the kind words! 🙏

[@mmm-cake]

Thank you

[@WeStudyBillionaires]

Thank you so much for tuning in! 💯

[@luispaz6908]

Whoopi Green. 😂 I love it. Omg, just started and its already great. 🤣🙏🏼

[@WeStudyBillionaires]

Hope you enjoy it! 💯

[@Dividendflywheel]

Guy Spier is a very honest man. There are few men like him in the asset management business. If your goal is wealth preservation then his conservative portfolio and strategy works. If however you are in the accumulation phase where “portfolio growth” is the priority then I would look at other fund managers. This in no way diminishes what Mr Spier is doing. If you are 70 years old, and need 4% of your portfolio to meet your annual expenses in retirement. The 9% he generates is more than sufficient. Younger investors might need higher consistent returns to build their nest egg

[@WeStudyBillionaires]

Thank you for the kind words! 🙏

[@philippkurz4327]

Thanks gentlemen.

[@WeStudyBillionaires]

Thank you so much for watching! 🙌

[@ChristianSoschner]

Excellent content

[@WeStudyBillionaires]

Glad you enjoyed it! 🎉

[@RicherWiserHappier]

Thanks a lot, @ChristianSoschner. Warm wishes, William

[@samsocial7513]

It is very nice. Love William, empathy is beautiful. Love Guy too, very sincere.

[@RicherWiserHappier]

Thanks so much! I'm so glad you enjoyed this conversation. Warm wishes, William

[@WeStudyBillionaires]

Happy to hear that! 🙌

[@Barkotina]

Why so many interviews with Spier?

[@WeStudyBillionaires]

He is a wealth of information and truly generous with sharing it. Hope you enjoyed the video! 💡

[@ChristianSoschner]

26:00 it is totally intense. Abaolutely agree. Ex post everybody is an investment hero. In the midst of disaster it is challenging. Otherwise everybody would have bought Bitcoin and NVIDIA in 2010.😂

[@WeStudyBillionaires]

Thank you for sharing your insights! 🙏

[@intuitiveguy6487]

Asinine comes from "asino" that means "donkey".

[@RicherWiserHappier]

Interesting! Thanks for that. I have a strange love of etymology!

[@intuitiveguy6487]

@@RicherWiserHappier You are welcome, and thank you so much for your hard work Sir, this interview was amazing, loved it!

[@angelsancheese]

Hahahaha I'm laughing at the babbel ad. When you said WSB sounds like Wall Street bets

[@monturegal]

Less than 9% return per annum and giving in fees. Woah! 26 years compounding. Even bonds or the index funds would have beaten This guy!

[@RicherWiserHappier]

Thanks for watching. Just to clarify: the Aquamarine Fund averaged 9.0% a year from inception in September 1997 through the end of 2023, vs 8.3% a year for the S&P 500 and 7.1% a year for the MSCI World Index. This is after all fees and expenses. Cumulatively, the Aquamarine Fund returned 874.0% vs 716.6% for the S&P 500 and 502.6% for the MSCI World, beating the S&P 500 by 157 percentage points and the MSCI World index by 371 percentage points over that period of 26+ years.

[@RicherWiserHappier]

Thanks,@@David-jp3wc -- this doesn't include the impact of taxes. The fund has very low turnover, so it's not been a big issue. But I think you're totally right to point out the challenge facing active managers of beating the indexes after expenses and taxes -- it's tremendously difficult over the long run. It's much simpler just to buy a couple of index funds. That said, there are tricky questions there, too, since the S&P 500 index is now dominated by the magnificent seven, which are trading at something like 47x earnings, so index investors are betting that this kind of positive momentum will continue over the long run, which doesn't seem like a sure thing, by any means. Also, at what point will foreign indexes start to outperform and how much should one have in a foreign index fund? I own a couple of index funds from Vanguard and Schwab and have always done so, but I also own some actively-managed funds, so I guess I'm torn, personally, between these two approaches, both of which have their advantages and disadvantages. Warm wishes, William

[@theselftaughtspeculator6553]

You must be new to the business, nobody reports fees before expenses, it’s literally illegal.

[@Cloninginvesting]

❤🤝🙏

[@WeStudyBillionaires]

Thank you for watching! 💡

[@johnnymartinARTIST]

he is too exhausting to listen to...just make the point and maybe vary your pitch and inflection . Wow!

[@Enjoyablewalks]

If someone invested on S and P index they would have made more money than investing with this fund.. I am sure the MER would have eaten any advantage..

[@RicherWiserHappier]

Thanks for your comment, @Enjoyablewalks. Just for the sake of clarity: the Aquamarine Fund's net return since its inception in September 1997 through the end of February 2024 was 872.5% versus 730.3% for the S&P 500 and 510.0% for the MSCI. This return is AFTER all fees and expenses. So, it's truly not accurate to say that investors would have made more money investing in the S&P 500 because they actually would have made 142.2 percentage points more in the Aquamarine Fund, which is not an insignificant margin of outperformance. In reality, the MSCI is almost certainly a more appropriate benchmark than the S&P 500 because the Aquamarine Fund has significant investments in places like India, China, and Switzerland. If you compare it to the MSCI, then the Aquamarine Fund outperformed the MSCI by 362.5 percentage points over those 26 1/2 years -- again, a pretty solid margin of outperformance. That said, I think it's TOTALLY legitimate to conclude that active investing is simply too difficult---especially after fees and taxes--and that it's easier just to own index funds and really hold them for the long term. Personally, I'm happy to own a couple of index funds, but I'm also happy to own some actively-managed funds as long as their expenses are reasonable and the manager's incentives seem aligned with their investors' best interests. I totally agree with what I think is your underlying point, which is that investing in the S&P 500 is a very legitimate choice and may be the smartest move for most investors. As Howard Marks once said to me, "most investors should index most of their money." My one reservation is that the S&P 500 seems to be heavily dominated these days by megacap growth stocks that seem relatively expensive. That makes me a little wary. Warm wishes, William

[@JWSpaceX]

less than 9%. why shouldn't I just stick with S&P500 ?

[@larrygerry985]

You basically should just ETF it

[@nobobonobo]

So he can collect management fees

[@Yu10l10]

True, in 30's it took nearly a decade to recover back to its price when the s&p corrected. There is a high likelihood were coming upto a situation like that. I'm out of index's and in cash/individual stocks growing year over year. You can buy a great business at a discount, you can't when it's an index.

[@jackwilliamburgess]

They said 9% a year was the returns, vs 8.3% for S&P since inception. So if you had wanted to underperform relatively, sure you could have brought the S&P

[@ragulsiddarth705]

The performance appears lower end of mediocrity. Still in the less than 5 percentage of hedge fund robbery who don't even beat the index with so much fees and commissions.

[@KamilMauel]

Only because of the relatively delightful 2000-2003 and 2006-2007 Guy beat the S&P500TR. That should no longer be advertised since it has no relevance to the current times.2014-2023 both BRK and SPY tripled white Guy not even doubled. He has been beaten by the market 6 years in a row now! Lost the edge at least a decade ago. Happens to everyone except Buffet.

[@lordabhikingfisher8087]

both of then are not aware of what they are doing except for living on top of each other... does not give us confidence in their ability to give advise. Just buy SPY and you will beat this guy hands down. Just mumbo jumbo for nothing.

[@RicherWiserHappier]

You're probably right. I was joking with my daughter over dinner that she should use that phrase on my gravestone one day: "Just mumbo jumbo for nothing." It has a nice ring to it. Warm wishes, William

[@dali8444]

😂

[@TheCheapGamer]

I am a better investor that this 🤡