RWH056: CALM AMID THE STORM

W/ CHRISTOPHER BEGG

19 April 2025

In this episode, William Green chats with Christopher Begg, an exceptional hedge fund manager who is the CEO & CIO of East Coast Asset Management. Chris has also taught for many years at Columbia Business School, where he teaches the prestigious Security Analysis course that Warren Buffett took with Ben Graham in 1951. Here, Chris discusses how to stay calm amid market turmoil; how he identifies great businesses; why Tesla could deliver extraordinary long-term returns; & how he builds a balanced life in 7 key areas.

SUBSCRIBE

Subscribe through iTunes
Subscribe through Castbox
Subscribe through Spotify
Subscribe through Youtube

IN THIS EPISODE, YOU’LL LEARN:

  • How Christopher Begg handles extreme market turmoil.
  • Why he loves volatility & how he exploits it.
  • Why temperament is the key to investment success.
  • What 3 qualities he seeks when identifying an exceptional business.
  • How Perimeter Solutions embodies what he looks for in a stock.
  • How value investing has evolved to what he calls “Value 3.0.”
  • Why Tesla could deliver “extraordinary” returns over many years.
  • What he thinks of Elon Musk.
  • How a 66-day challenge helped Chris to nurture good habits.
  • Why the secret of success is “persistent incremental progress.”
  • How Buffett & Munger won the investing game with “class & virtue.”
  • How to design a balanced, joyful, & spacious life.

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

[00:00:00] William Green: Hi there. Welcome back to the Richer, Wiser, Happier Podcast. Our guest today is one of my favorite people in the investing world, an extremely thoughtful hedge fund manager named Christopher Begg. Chris is the co-founder and chief investment officer of East Coast Asset Management, which is produced superb market beating returns over the last 16 years.

[00:00:21] William Green: Chris also teaches the prestigious security analysis course at Columbia Business School. That’s the same course that Benjamin Graham taught back in 1951 when the star student in the class was an aspiring stock picker named Warren Buffett. Over the last 13 years, Chris has taught more than a thousand students at Columbia, and his guest speakers in the class have included a be who’s who of famed investors like Nick Sleep, Todd Combs, Howard Marks, and Seth Klarman, along with brilliant thinkers like Iain McGilchrist, and Peter Kaufman.

[00:00:52] William Green: Chris has an unusual lifestyle splitting his time between a small town in Massachusetts and a home in the jungles of Central America, where he spends a fair amount of time surfing, playing tennis, meditating, reading voraciously, and hanging out with his family and friends. It’s all part of his pursuit of a, an unusually spacious life that’s balanced, joyful, and rich in the deepest sense of the word.

[00:01:18] William Green: One reason why this lifestyle is possible is that he owns an extremely concentrated portfolio of high quality businesses that he can typically leave alone for many years getting outta the way so they can continue compounding without too much meddling. At the moment, he owns only eight stocks. He’s also unusually patient when it comes to making any new investment.

[00:01:41] William Green: He typically waits for rare opportune moments when the long-term potential of an exceptional business is temporarily obscured by clouds of uncertainty. That uncertainty allows him to invest at a hefty discount, and he then sits back and waits until the clouds eventually disperse. As you’ll hear, he’s particularly fascinated these days with one of the most controversial companies of all Tesla.

[00:02:08] William Green: In recent months, Tesla facilities have been vandalized or set on fire. Many consumers around the world have vowed to boycott its cars. Sales have plummeted, and Elon Musk has become one of the most polarizing figures in business. Meanwhile, Tesla’s stock has been cut in half, so it’s hard to imagine a better or more timely example of a formidable business that’s operating under dark and stormy clouds.

[00:02:34] William Green: The interview you’re about to hear took place in early April when the stock market was plunging. After the US government’s new tariff policies triggered a maelstrom of shock, fear, confusion, and frankly, incredulity. Amid the mayhem, Chris seemed to me totally at peace, calmly and cheerfully using the turmoil as a long awaited opportunity to invest in a couple of mispriced stocks.

[00:03:00] William Green: It’s a great example of the temperamental advantage that I’ve seen in all of the most successful investors. I hope you enjoy our conversation. Thanks so much for joining us.

[00:03:14] Intro: You’re listening to the Richer, Wiser, Happier podcast, where your host, William Green, interviews the world’s greatest investors and explores how to win in markets and life.

[00:03:34] William Green: All right, folks. It’s lovely to be here with you and with my good friend Chris Begg, who’s a returning guest to the podcast. Chris, as you know, is a terrific hedge fund manager and a great teacher, a professor at Columbia Business School, and also a wonderful human being. So Chris, it’s lovely to see you.

[00:03:50] William Green: Thanks for coming back.

[00:03:52] Christopher Begg: Pleasure to be here, William. Thanks for having me back.

[00:03:54] William Green: It’s great. It’s a real treat and we are doing this on a particularly interesting day, right? There’s a fascinating backdrop with, I think this, this’ll come out on your birthday in a couple weeks. On April 19th, if I remember correctly.

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!

BOOKS AND RESOURCES

NEW TO THE SHOW?

SPONSORS

Support our free podcast by supporting our sponsors:

Disclosure: The Investor’s Podcast Network is an Amazon Associate. We may earn commission from qualifying purchases made through our affiliate links.

CONNECT WITH WILLIAM

CONNECT WITH CHRISTOPHER

WSB + BFF + RWH Promotions

The Intrinsic Value Newsletter