This is an episode of the Excess Returns Podcast with Matt Zeigler and me. We go over the highlights from our two interviews with Professor Aswath Damodaran.

Lots of wisdom in one full hour, enjoy!

Join Matt Zeigler and Bogumil Baranowski as they play our favorite clips from both the Excess Returns and Talking Billions podcast interviews with Aswath Damodaran. This conversation unpacks Damodaran’s timeless insights on navigating uncertainty, embracing the process of investing, and finding comfort in a volatile market. From the ritualistic allure of the Berkshire Hathaway meeting to the pitfalls of factor investing,
Main Topics Covered:
The dangers of rigid, ritualistic value investing and the Berkshire Hathaway meeting’s cult-like atmosphere, contrasted with its networking value.
Embracing uncertainty as a feature of investing, not a bug, and avoiding unhealthy coping mechanisms like denial or outsourcing.
The limitations of factor investing, emphasizing the need to bring unique value to the table to achieve excess returns.
The stock market as a reflection of real-world business value, not a place where money is made, and the futility of fighting market dynamics.
The importance of loving the investing process over obsessing about beating the market, with diversification as a safeguard against hubris.
Balancing comfort investments with high-risk, high-reward opportunities to build a resilient portfolio.
The rise of passive investing and its potential to create opportunities for active investors as fewer people seek market mistakes.
The "sleep test" for investors—framing choices with gratitude and perspective to maintain peace of mind.
00:00:00 – Introduction and Damodaran’s view on contempt in investing
00:01:00 – Matt and Bogumil introduce the episode and their admiration for Damodaran
00:03:00 – Why the Berkshire Hathaway meeting terrifies Damodaran
00:11:42 – Uncertainty as a feature, not a bug, in investing
00:21:02 – The shortcomings of factor investing and the need to bring value
00:31:01 – The market as the boss and the importance of staying detached
00:38:22 – Loving the investing process over beating the market
00:44:05 – Comfort investments vs. edge opportunities in portfolio construction
00:52:50 – Active investing as bad plumbing and the rise of passive investing
01:01:12 – The sleep test: Framing investments for peace of mind
01:06:48 – Closing remarks and where to find more from Bogumil and MattPodcast Program – Disclosure Statement

Blue Infinitas Capital, LLC is a registered investment adviser and the opinions expressed by the Firm’s employees and podcast guests on this show are their own and do not reflect the opinions of Blue Infinitas Capital, LLC. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.

Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.

Information expressed does not take into account your specific situation or objectives, and is not intended as recommendations appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.

This is the audio version of my this week's article.

Find all the articles, summaries, and book reviews on Substack https://bogumilbaranowski.substack.com/ -- subscribe there for all content, not to miss anything.If you want to reach out, I'd love to hear from you here is my email bogumil AT talkingbillions.co (not com)] Thank you!

Podcast Program – Disclosure Statement

Blue Infinitas Capital, LLC is a registered investment adviser and the opinions expressed by the Firm’s employees and podcast guests on this show are their own and do not reflect the opinions of Blue Infinitas Capital, LLC. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.

Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.

Information expressed does not take into account your specific situation or objectives, and is not intended as recommendations appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.

Find all the articles, summaries, and book reviews on Substack https://bogumilbaranowski.substack.com/ -- subscribe there for all content, not to miss anything.If you want to reach out, I'd love to hear from you here is my email bogumil AT talkingbillions.co (not com)] Thank you!

Podcast Program – Disclosure Statement

Blue Infinitas Capital, LLC is a registered investment adviser and the opinions expressed by the Firm’s employees and podcast guests on this show are their own and do not reflect the opinions of Blue Infinitas Capital, LLC. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.

Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.

Information expressed does not take into account your specific situation or objectives, and is not intended as recommendations appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.

Guest: Nuala Walsh - Mind Equity CEO, Professor of Behavioral Science at Trinity College Dublin, non-executive director, award-winning author, TEDx speaker, and London School of Economics fellow. Recognized among the 100 most influential women in finance with a 30-year investment career spanning BlackRock, Merrill Lynch, Standard Life, and Aberdeen. Author of "Tune In, How to Make Smarter Decisions in a Noisy World."

Key Moments

3:10 - Information access vs. action: Walsh discusses how in investing, everyone has access to the same public information, but having information and acting on it are different things.

3:50 - The donkey story: Walsh shares the parable of a donkey that died from indecision.

5:26 - Elvis and decision context: Walsh explains how she visited Graceland while writing her book and observed how Elvis made bad decisions despite his success, surrounded by sycophants and trapped in his own "bubble of beliefs."

9:21 - The danger of isolation: Discussion about investment professionals making decisions from isolated environments without firsthand experience of what they're investing in.

10:51 - Four factors shaping judgment: Walsh outlines how our decision-making is affected by high-speed environments, data overload, visual dominance, and polarized thinking.

15:28 - Long-term thinking: Baranowski shares how wealthy families with "infinite time horizons" can rise above market noise by looking far ahead.

16:46 - Beyond blind spots: Walsh introduces "deaf spots" (inability to hear accurately) and "dumb spots" (inability to speak wisely) as crucial concepts beyond traditional blind spots.

22:09 - Perimeter judgment traps: Walsh explains her framework of 10 traps.

28:47 - Inaction as decision: Discussion of how procrastination and inability to decide is itself a decision with consequences.

32:28 - Breaking big decisions into smaller ones: Walsh describes "chunking" as a strategy to make overwhelming decisions more manageable.

35:10 - Risk and reward balance: Using the 1996 Mount Everest disaster as an example of how reward-seeking distorts rational judgment.

42:12 - Identity traps: Conversation about how people get labeled in their careers (like "value investor") and how difficult but possible it is to reinvent oneself.

47:21 - Hearing what others don't: Walsh discusses cognitive discipline and tuning in to signals others miss, especially for high-consequence decisions.

52:21 - Slowing down: The importance of creating "decision friction" or "speed bumps for the mind" to interrupt automatic thinking, especially for important choices.

55:45 - Personal definition of success: Walsh shares how her definition has evolved from external achievements to "peace of mind and freedom to do what you want."

Podcast Program – Disclosure Statement

Blue Infinitas Capital, LLC is a registered investment adviser and the opinions expressed by the Firm’s employees and podcast guests on this show are their own and do not reflect the opinions of Blue Infinitas Capital, LLC. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.

Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.

Information expressed does not take into account your specific situation or objectives, and is not intended as recommendations appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.

This is my appearance on The Art of Quality in Investing Podcast with John Candeto and Paul Higgins. Enjoy!

The Art of Quality Podcast --- This podcast explores the lived experience of those with a deep familiarity with the stories and patterns of quality across business, entrepreneurship, investing and the arts. We have learned like the stoics, stories carry most of the wisdom.

Bogumil Baranowski is the founder of Blue Infinitas Capital, author of three investing books, including Money, Life, and Family, and host of the globally followed Talking Billions podcast.

Trained in the Buffett-Munger school of thought, he brings 20 years of investment experience. Born in Poland, educated across Europe, and professionally shaped in New York City, he has served as a portfolio manager, fund manager, partner, and founding partner at leading investment firms.

At Blue Infinitas Capital, he advises affluent families on both sides of the Atlantic, managing wealth across generations and navigating market cycles.

Bogumil is also a TEDx speaker, a regular at VALUEx Klosters and MOI Global, and a longtime attendee of the Berkshire Hathaway Annual Meeting.

What We Discussed

• Trust is the cornerstone of long-term wealth management.
• Investing is an infinite game, focused on long-term survival, not short-term wins.
• Effective wealth preservation spans generations and requires engaging the entire family.
• Crises test the strength of client-advisor relationships and highlight the value of trust.
• Wealth is deeply emotional, shaping family dynamics and requiring compassion and understanding.
• Compounding wealth is a nonlinear force—difficult to grasp but thriving with patience and a long-term mindset.
• Navigating volatility demands emotional intelligence and strong relationships.
• Honest conversations are crucial for successful wealth transfer.
• Lessons from nature inspire resilience and sustainable investment practices.
• Choosing the right clients ensures a more fulfilling and effective advisory practice.

Podcast Program – Disclosure Statement

Blue Infinitas Capital, LLC is a registered investment adviser and the opinions expressed by the Firm’s employees and podcast guests on this show are their own and do not reflect the opinions of Blue Infinitas Capital, LLC. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.

Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.

Information expressed does not take into account your specific situation or objectives, and is not intended as recommendations appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.

If you want to read a letter I wrote to clients and friends of the firm, please send me a quick email [bogumil AT talkingbillions.co (not com)] with a few words about yourself, and I'll send it over. Thank you!

Here you will find the audio version of my this week's articles, find it on Substack: https://bogumilbaranowski.substack.com/ -- subscribe there for all content, not to miss anything.

Also, it's super important! I'll be in Omaha in a few weeks, if you want to say hello, send me a quick email bogumil AT talkingbillions.co (not com) or if you just want to say hello, use the same email. Curious to hear from you!

Podcast Program – Disclosure Statement

Blue Infinitas Capital, LLC is a registered investment adviser and the opinions expressed by the Firm’s employees and podcast guests on this show are their own and do not reflect the opinions of Blue Infinitas Capital, LLC. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.

Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.

Information expressed does not take into account your specific situation or objectives, and is not intended as recommendations appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.

If you want to read a letter I wrote to clients and friends of the firm, please send me a quick email [bogumil AT talkingbillions.co (not com)] with a few words about yourself, and I'll send it over. Thank you!

Here you will find the audio version of my this week's article, find it on Substack: https://bogumilbaranowski.substack.com/ -- subscribe there for all content, not to miss anything.

Also, it's super important! I'll be in Omaha in a few weeks, if you want to say hello, send me a quick email bogumil AT talkingbillions.co (not com) or if you just want to say hello, use the same email. Curious to hear from you!

Podcast Program – Disclosure Statement

Blue Infinitas Capital, LLC is a registered investment adviser and the opinions expressed by the Firm’s employees and podcast guests on this show are their own and do not reflect the opinions of Blue Infinitas Capital, LLC. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.

Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.

Information expressed does not take into account your specific situation or objectives, and is not intended as recommendations appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.