The Education of a Value Investor

by Guy Spier

‘Reach enlightenment faster and with fewer missteps.’

The Book in 3 Sentences;

Guy discusses his personal shortcomings and the mental pitfalls he tries to avoid as manager of the Aquamarine fund. Particularly useful is his advice on restructuring your environment, and his investment checklists. He also talks about his admiration for Warren Buffett and Mohnish Pabrai, and advocates cloning those you admire.

Top Quotes:

• Structure your environment to counter mental weakness, and develop workarounds for mental shortcomings

• We like to think that we change our environment, but the truth is that it changes us

• Hang out with people better than you, and you cannot help but improve.

• The entire pursuit of value investing requires you to see where the crowd is wrong so that you can profit from their misperceptions.

Who Should Read it?

Both rookie and seasoned investors alike. It can be easily understood and serve to inspire a beginner who hasn’t yet bought a stock, while an experienced veteran may find some common ground with Guy and be able to apply his wisdom to his or her own process.

Actionable Info

Restructure your environment/workspace to increase productivity

Get your habits in order

Use circuit-breakers to distance yourself from investing

Choose your role models wisely, and clone them

Every serious investor must know how to read a company’s accounts

Read regularly and never stop learning

Compound good-will

TLDR;

We are trying to do what we can to tilt the playing field in our favor.

Use self-help books, Re-structure your environment, Socialise with the right people, Make friends with the eminent dead, Clone people you admire, Get envy out of your life, Guard against letting in the wrong types of information.