TIP694: The Scuttlebutt Edge: From Research to Returns w/ Kyle Grieve

We Study Billionaires - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 26 January 2025

⏱️ 68 minutes

🔗️ Recording | iTunes | RSS

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Summary

In today's episode, Kyle Grieve will discuss the concept of scuttlebutt, made famous by Philip Fisher in Common Stocks and Uncommon Profits. You’ll learn why scuttlebutt is essential for building conviction and understanding both bullish and bearish perspectives, how it involves learning from key groups connected to a business, how asking the right questions can reveal valuable insights, why Industry specialists and strong networking are crucial for gathering expert knowledge, and how to utilize self-reflection, journaling to continuously improve your decision-making, and much more! IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 02:55 - Why scuttlebutt is so essential in building conviction and learning about a business. 03:32 - Why scuttlebutt can help you understand bullish and bearish perceptions on a business. 10:03 - The four parties related to a business that you should learn from. 26:34 - What you can learn and what questions to ask a business’s employees, from the people working at the “frontline” to the CEO. 36:49 - How Warren Buffett sleuthed GEICO, which was one of the most impactful events in his life. 49:50 - How to learn from industry specialists and what to ask to learn about specific companies or industries. 54:51 - Details on how Li Lu did scuttlebutt on a very successful investment in Timberland. 55:01 - Why networking is so crucial to the scuttlebutt process. 58:11 - How to use self-reflection and journaling to understand better your mistakes and how to avoid them in the future. 01:07:01 - My four-step framework for learning from my investing mistakes. And so much more! Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members. Buy Damn Right! Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger here. Follow Kyle on Twitter and LinkedIn. Check out all the books mentioned and discussed in our podcast episodes here. Enjoy ad-free episodes when you subscribe to our Premium Feed. NEW TO THE SHOW? Get smarter about valuing businesses in just a few minutes each week through our newsletter, The Intrinsic Value Newsletter. Check out our We Study Billionaires Starter Packs. Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok. Browse through all our episodes (complete with transcripts) here. Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool. Enjoy exclusive perks from our favorite Apps and Services. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Hardblock Found Unchained Fintool The Bitcoin Way Onramp Bluehost Vanta PrizePicks Fundrise TurboTax HELP US OUT! Help us reach new listeners by leaving us a rating and review on Spotify! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

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0:00.0	You're listening to TIP.
0:03.0	One key to some of the legendary investors' most significant investments was their deep understanding of a business.
0:10.6	Whether you look at people like Warren Buffett, Lelieu, or Philip Fisher, these guys just knew how to understand a business better than nearly anybody else out there.
0:19.3	They used this knowledge to their advantage, finding investments that were unloved or orphaned unnecessarily.
0:25.5	Today, I will cover a wide range of people that you can talk to to understand a business at an
0:30.4	extremely high level.
0:32.3	From my research in the Scuttlebut, I found four primary parties that you want to talk to
0:36.6	to improve your understanding of a
0:38.1	business. I'll cover precisely who those parties are and what you should ask them to enhance your
0:44.0	own business acumen. Now you might be wondering, why should I add this cuttlebutt method when
0:48.9	researching a stock? After all, isn't reading public information enough to understand the business?
0:54.9	And to answer that, I would say, yeah, you probably can learn a lot about a company via public
0:59.5	filings, research reports, earnings calls, and earnings reports.
1:03.0	But you will never understand a business to its full extent using these resources exclusively.
1:08.6	If you want an edge in investing, you have to work for it. And Scuttlebutt
1:12.7	is that edge that I think very few are willing to do, but the ones that are willing to do it can
1:16.6	get these very, very outsized returns. This episode has some great case studies to really hammer
1:21.6	home how important Scuttlebutt is. You'll learn how legends like Warren Buffett and Lee Liu
1:27.1	have used Scuttlebutte to find incredible investments.
1:29.9	I'll also review some other case studies from others that have successfully sleuthed to business and reaped some enormous benefits.
1:36.6	And then to finish the episode off and stay with the ethos of improved learning,
1:40.5	I wanted to weave in how you can use your circle of competence to better understand industries
	...

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