Podcast & Book Reviews

February 8, 2024

Book Review | Big Money Thinks Small by Joel Tillinghast

Big Money Thinks Small by Joel Tillinghast

With Peter Lynch writing the foreword to “Big Money Thinks Small” stating “Joel is up there with all of them” [from Mario Gabelli to Warren Buffett] it’s hard not to have high expectations for a book. But happy to say this book exceeded my expectations. For context and background, Joel Tillinghast has spent the better part of three decades at Fidelity Investments, honing his investment skills, in which the book provides an insightful look into the principles and practices that have contributed to his success.

Unlike some investment books, Tillinghast distils complex financial concepts into clear, straightforward language, making it suitable for both seasoned investors and those new to the world of finance. He provides real world examples while providing a balance view in terms of investment style and approach.

Finally the book delves into the psychological aspects of investing, not only pushing the case for a disciplined and patient approach but key steps in managing some emotional pitfalls and biases that cause investments to come unstuck.

Below are three of my favourite quotes from the book.

- Every skilled investor I’ve met has been curious and a lifelong learner, they read broadly and constantly. For anticipating the future, it’s more important to understand why things happen than what happened.

- The good news is that stock pickers can outperform simply by cutting out the stuff that drags down returns. They seek out undervalued stocks of companies they understand in growing industries with honest, capable management.

- One advantage of investing in simple businesses is that if outsiders can diagnose the issues, skilled managers already know whether they can be fixed and how.

Link to Book

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