High Conviction Value Investing | Chris Davis
Excess ReturnsJanuary 11, 202401:03:44

High Conviction Value Investing | Chris Davis

In this episode, we are privileged to be joined by Chris Davis, Chairman and Portfolio Manager of Davis Advisors. Chris has built an outstanding long-term record as a value investor and also serves on the board of both Berkshire Hathaway and the Coca-Cola Company. We discuss his process for analyzing companies and his owner earnings-based approach that led him to companies like Amazon when many value investors avoided them. We also discuss his biggest lessons from his father and grandfather, both of whom were very successful investors as well, how Charlie Munger changed his life and his thoughts on concentration and position sizing.

If you found this interview with Chris Davis valuable, you might also enjoy our interviews with well- known value investors Joel Tillinghast and Steve Romick.. Links are below

Joel Tillinghast
https://youtu.be/p3ZDE8p1agE

Steve Romick
https://youtu.be/eDKFWPEy3K0

00:00 - Intro
02:01 - Chris' biggest lessons from his grandfather Shelby Cullom Davis and his father Shelby M.C. Davis
05:42 - Owner earnings - a timeless investing metric
12:27 - The dangers of trying to copy Amazon
18:28 - The characteristics of a good board of directors
25:07 - How Charlie Munger changed Chris' life
32:36 - Stewardship and the investing profession
37:32 - The challenge of holding on to winning positions
48:26 - Why sector concentration isn't a good measure of risk
53:45 - The sustainability of the largest companies in the S&P 500
01:01:20 - The one lesson Chris would teach the average investor

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