Investing Lessons From Darwin | What I Learned About Investing From Darwin w/ Kyle Grieve (TIP597)

Kyle shares the lessons he learned from reading What I Learned About Investing From Darwin by Pulak Prasad.  The book is authored by Pulak Prasad, an investor out of India who helps run Nalanda Capital. From 2007 to 2022, they compounded their capital at 19% per annum, turning 1 rupee into 13.8 rupees during that time sample! But more important than their track record is the unique ways they run their fund.

The book illuminates 3 key principles that Nalanda uses for its investing framework: 
1. Avoid big risks.
2. Buy high-quality at a fair price.
3. Don’t be lazy – be very lazy.

To help readers understand why he invests this way, he dives deep into many of Darwin’s principles to help you understand their potential power in investing.

IN THIS EPISODE YOU’LL LEARN:
- What a cheetah can teach you about risk
- Why you should be more focused on risk than returns
- How things in nature and investing mostly stay the same
- Some interesting data on why great companies remain great and poor companies remain mediocre
- What a Russian scientist can teach us about the power of focusing on one investing metric to help identify wonderful businesses
- The importance of robustness in nature and why you should search for the same attribute in business
- How to identify businesses that can evolve in a fast-changing world and remain on top
- What guppies can teach us about honest and dishonest signaling
- Why we should prioritize the past over making bold predictions
- How to invest without ever doing a discounted cash flow ever again
- What bear teeth and finches can teach us about the importance of avoiding noise
- How to use the presence of noise as an opportunity to outperform