TIP583: Preparing for the Bear Market to Come w/ Gautam Baid

Clay Finck is joined by Gautam Baid to discuss his new book, The Making of a Value Investor. 

Gautam Baid, CFA is the Managing Partner of Stellar Wealth Partners India Fund, a Delaware-based investment partnership which is available to accredited investors in the US. Gautam is also the Equity Advisor of Complete Circle Stellar Wealth PMS, a portfolio management service which is available to Indian citizens and NRIs globally. Both funds are modeled after the Buffett Partnership fee structure and invest in listed Indian equities with a long-term, fundamental, and value-oriented approach.

Gautam is author of the international best-seller on value investing, The Joys of Compounding. In 2018 and 2019, he was profiled in Morningstar’s Learn from the Masters series.

IN THIS EPISODE YOU’LL LEARN:

00:00 – Intro.

02:40 – The impetus for Gautam writing a second book.

04:24 -Why journaling is an important practice for value investors.

06:27 – Why judging market sentiment is important and how investors can go about doing so.

13:21 – How Gautam came to the realization that quality of the business should be emphasized.

16:19 – Why a behavioral edge is the most accessible edge to individual investors today.

19:57 – Gautam’s biggest eureka moment in his journaling process.

27:25 -Why we should let our portfolio winners run.

29:31 – How Gautam thinks about liquidity and why Stan Druckenmiller considers it the most important thing in markets.

33:43 – The telltale signs that a bear market is complete.

39:50 – What companies you shouldn’t average down on in a bear market.

47:00 – How quality businesses thrive during a bear market.

48:19 -Why different stocks require differing levels of patience.

50:23 – How we can use the wisdom of markets to our advantage.

54:05 – How Gautam thinks about the Fed’s policies.

59:21 – How investors can best prepare themselves for the next bear market.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

• Check out our newly released TIP Mastermind Community.
• Learn more about Gautam’s Fund – Stellar Wealth Partners.
• Gautam’s book: The Making of a Value Investor.
• Check out the related episode: WSB566: The Passionate Pursuit of Lifelong Learning w/ Gautam Baid, or watch the video here.
• Follow Clay on Twitter.
• Follow Gautam on Twitter.

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