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 SEE LATEST EPISODES https://www.validea.com/excess-returns-podcast FIND OUT MORE ABOUT VALIDEA https://www.validea.com FIND OUT MORE ABOUT VALIDEA CAPITAL https://www.valideacapital.com FOLLOW JACK Twitter: https://twitter.com/practicalquant LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094 FOLLOW JUSTIN Twitter: https://twitter.com/jjcarbonneau LinkedIn: https://www.linkedin.com/in/jcarbonneau