Crushing The Market Over Four Decades w/ Thomas Russo (RWH013)

William Green chats with Thomas Russo, a revered global investor who’s beaten the market by a mile over four decades. Tom, who oversees $8.5 billion, is the Managing Member at Gardner Russo & Quinn and Semper Vic Partners. Here, he shares the principles that drive his enduring success, along with key lessons he’s learned from three legends: Warren Buffett, Charlie Munger, and Bill Ruane. 

IN THIS EPISODE, YOU’LL LEARN:
00:00:00 - Intro
00:00:36 - What Tom Russo learned from a life-changing encounter with Warren Buffett in 1982.
00:09:07 - Why “agency” cost is one of the greatest risks facing all investors.
00:14:40 - Why Tom favors companies that willingly endure pain today for gain tomorrow.
00:16:21 - How he rode Berkshire Hathaway from $900 to more than $430,000 per share.
00:22:14 - Why Buffett’s team of successors should do fine when Berkshire is in their hands.
00:29:29 - What Tom learned while working for investment legend Bill Ruane.
00:38:31 - Why Tom immediately sold Wells Fargo & Altria after realizing they’d lost their way.
00:46:12 - Why he loves brands where consumers believe there’s “no adequate substitute.”
00:51:56 - Why he’s bullish about Heineken’s long-term future, even after owning it for 36 years.
01:07:42 - How Tom succeeds by resisting short-term temptations & deferring gratification.
01:18:25 - What he failed to understand about Alibaba & the political risks of investing in China.
01:27:30 - Why he’s okay with tobacco stocks, not with companies that wreck the environment.
01:30:44 - How innovators like Nestlé & Heineken are helping to combat climate change.
01:41:28 - How Tom’s investment success is fueled by his insatiable curiosity.
01:44:32 - What he learned from Charlie Munger about the importance of trusting your gut.

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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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[faronskelton]

Another excellent interview sir. Thank you!

[PhillCurtis]

I'm finally getting the chance to binge watch the content with william green - i wasn't aware of thomas russo before this chat - an interesting discussion. i like that you ask tough questions regarding china and the horrific treatment of the Uyghur people and the issues behind some of the morality of owning tabacco brands/ beer brands. it must be a narror field of companies you can own if brand strength is what you look for, especially when you have a large amount of money to invest.

[davidwilson]

It is weird more people view financial YouTubers with little experience rather than people who have a 40 year track record of making money.

[alexandersommer]

What a great conversation, William. Appreciate it. Alex😊

[gaetancharbonneau]

Very interesting interview, thanks! I looked at his portfolio and while I find many extremely relevant ideas, I couldn't see a single gold/silver related stock...

[ReflectionOcean]

What does "beaten the market by a mile" mean? What is his return exactly?

Moneyweek said: "Between 1990 and 2016, Semper Vic returned more than 12% per year, compared with around 9% for the S&P 500".

[tulipmania]

Hi William
How do you get access to Tom's letters?
Are they available for public?

[seanconcannon]

Russo likes those dirty sin stocks like PM and Heineken. I love it.

[MW]

I wonder how many investors actually think deeply about the business they invest in … no matter how u think about it… alcohol brings no benefit to human body. The part whereby the speaker talk enthusiastically about more people coming to age to drink and the drinking market gets bigger and the smile on the face… somehow, just …. I am no one to judge but as average investor, I tend to avoid invest in such stock especially the business have no obvious benefit to human such as gambling, alcohol etc. I know these companies make lots of money but when I sleep, I can’t sleep well knowing the profit I get is from such practice. Seeing people lost their loved ones from drinking, obesity problem that getting worse and gambling issue that wreck families, it makes me more aware of the type of business I invest in. So many talk about investing in green environmental stock but overlook simple things that can affect human life like gambling, alcohol & junk food stock

[lorenzmuller]

The problem with the See's Candy example is they started with a buy price of 30mn USD. Try to buy such an asset in an early stage in the public markets nowadays!

[jimjackson]

Combustion is a source of harm.Now there is big pile of baloney.

[wolfsden]

Buffet 😂... tricking the customer that raising prices is good lol. Proving consumers are morons.