A Margin Of Safety In Stocks & Life w/ Fred Martin (RWH020)

William Green speaks with Fred Martin, the lead portfolio manager at Disciplined Growth Investors. Here, at age 76, he looks back on half a century as a hugely successful investor & shares hard-earned lessons on how to survive & thrive over the long haul by mitigating risks & respecting the fundamental laws of investing.

IN THIS EPISODE, YOU’LL LEARN:
00:00:00 - Intro
00:06:48 - What Fred Martin discovered about mitigating risk as a Navy officer in the Vietnam War.
00:11:14 - How he handles the pain & discomfort of difficult periods in the stock market.
00:30:12 - Why he thinks Tesla’s stock is overvalued & what he thinks it’s really worth.
00:33:54 - Why it’s critical for investors to be skeptics who never let down their guard.
00:39:01 - What insights he drew from studying Benjamin Graham & writing a book about him.
00:47:34 - How Fred applies a consistent three-step process to every business he analyzes.
00:51:01 - How to win as an investor by waiting for intrinsic value & the stock price to “true up.”
00:59:45 - Why he regards a legendary free soloist climber as the world’s greatest risk manager.
01:10:14 - How flying planes has helped Fred to refine his understanding of the margin of safety.
01:15:01 - Why he’s given three younger colleagues the authority to veto his stock picks.
01:20:10 - Why he “seals the exits” before buying a stock, assuming that he’ll own it forever.
01:31:45 - Why fund managers should sacrifice their own interests for the sake of their clients. 
01:35:45 - What advice he’d give to people who are looking to hire an investment adviser.
01:40:34 - Why he believes that relationships & purpose are the two most important things in life.
01:44:47 - What he’s done to build good health so that he’s still going strong at age 76.
01:46:37 - How his religious faith has made him a better investor & a better steward of assets.
01:51:43 - What he’s learned about how to endure sorrow & tragedy.

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On Richer, Wiser, Happier, William Green interviews high-profile guests such as Howard Marks, Joel Greenblatt, and Ray Dalio. Exploring what they can teach us about how to succeed in markets and life.

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[WeStudyBillionaires]

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[pkozanov]

William, since yesterday afternoon, when you posted this video on YouTube and on your podcast, I have listened to it twice. But it's so enjoyable and educational that I will listen to it again and again. I even shared a few excerpts with my wife because I knew she would love them too.

Have you ever read a book, seen a painting, listened to a piece of music or watched a movie that was so damn good, that you say to yourself: "I'm good for the year, I got all I need to keep me going and growing and help me find my way through life for awhile"? Well, this is how watching this and many other of your videos felt like. They are gold, William! Pure gold!


And just when I think I got all I need, you always deliver another knockout interview, and I am wonderstruck again!

THANK YOU!

[superdad]

Im from MN, and I heard of Fred from Eaglebrook church. Loved his story, searched him on youtube and found this podcast, and listened while im driving. Im going to relisten, take notes, write down every book, and read them all. I'll dig into your other content, too. Great podcast. Thanks for this!

[mathieujasinski]

Another great achievement of unpacking so much human and professional value in such a short time. Forever grateful for the work you're doing William, and the kindness and openness of your guests.

[BradKaellner]

Fred reminds me of a young Buffett walking with bent knees to minimize falls. Always watching the downside. Great attribute for a fund manager!

[Datapoint]

I thoroughly enjoyed listening to your conversation. Thank you for sharing!

[WaTeMwandi]

This is phenomenal. William is there a way to get these interviews in transcript form? I don’t think I am the only one who is willing to pay for those transcripts. You are a treasure. It’s unreal.

[kevinboutsen]

These interviews are truly amazing just like your book. Read it twice already. The Alex Honnold story reminds me of how my dad would prepare for formula 1 racing in the 80s. He would live with risk in mind all the time. Your interviewing and preparation is truly amazing. Thank you for sharing this knowledge on youtube!

[bibbidi_bobbidi_bacons]

I really liked the interview- haha - man, I wish I knew half of what he knows. Dang. Inspirational. Take it easy

[MrDavid]

Outstanding interview. Inspiring, educational and emotional. Makes me strive to improve my investing skill and to improve personally. Bravo to William and Fred. Thank you both.

[tekootianderson]

Candid interview. Loved listening to the ups and downs. Reality indeed.

[adrianking]

This was a wonderful episode from start to finish. I enjoyed every story and every lesson that came with it. Thank you so much to Fred for being willing to share.

[david.seholm]

Probability of expected future returns. That is a fascinating concept. It would be interesting to know how many outcomes they are postulating, whether that is a fixed number or if it varies. I could ask questions about this all day long. It opens up being able to more accurately apply game theory around bet sizing though.

[maxreisman]

Alex Honnold would be great on the podcast!

[detectiveofmoneypolitics]

Economic investigator Frank G Melbourne Australia 🇦🇺 started watching this informative content cheers Frank

[cjdch]

Nice guy - i looked at his 13F. The 'rocket' he talks about is SMCI - which is a cyclical at peak margins so watch out - that is why it looks cheap. If its going to go up it will by end of Q1 so u could buy with 5% stop loss - but sell end march as downside is circa 40% in next 12-18 months if the prior cycle peaks (and resulting troughs) of 2010 and 2015 are a guide. Only stocks i would buy (today is 8 Jan 2022) out of his portfolio are: PSTG and ANET.

[mattp]

sounds to me like he rode a nice growth tailwind....

[enjoythedreamlife]

89 per cent of mutual funds cant beat the market better to own Vanguard VOO S&P . mutual funds charge high fees

[jdbp]

Did he just say his father is “Injun”?