The "Podium of Errors" of Investing Legend François Rochon

Описание: François Rochon, founder and president of Giverny Capital, has compounded capital at extraordinary rates for nearly 30 years by owning great businesses and thinking like a long-term owner. In this conversation with William Green, he explains why paying a fair price, learning from mistakes, and staying on the “middle road” have been central to his success.

🧭 Topics Covered
• How François Rochon balances paying a reasonable price with owning outstanding companies that can compound earnings over long periods.
• Why many of his biggest mistakes were errors of omission—and how missing great businesses shaped his views on valuation, growth, and humility.
• How the idea of the “middle road,” drawn from Ben Graham and classical philosophy, underpins his approach to growth rates, valuation, diversification, and long-term survival as an investor.

⏱ Timestamps / Chapters
00:00 — Introduction: William Green asks François Rochon how he handles the pressure not to overpay for outstanding companies. They frame the discussion around Rochon’s long-standing habit of documenting mistakes—most of which stem from failing to buy great businesses because they appeared slightly too expensive.
00:36 — Balancing Price and Growth: Rochon explains that he sometimes misses great companies because he wants a lower price-to-earnings ratio. He emphasizes that one key lesson is being willing to pay a higher PE ratio for outstanding companies, as their growth can justify the cost over the long term.
03:59 — Learning From Mistakes: Rochon explains why he maintains a yearly “podium of errors” to review both decisions made and opportunities missed. He describes how this practice builds humility and helps him avoid repeating the same mistakes.
08:50 — The “Middle Road” in Growth, Valuation, and Portfolio Construction: Rochon lays out his “middle road” philosophy, balancing growth rates, valuation, company size, and diversification.
Concluding Insights: Rochon explains why he avoids market predictions, stays fully invested, and focuses on owning great companies through downturns. He closes by describing how market corrections create opportunities to upgrade the portfolio by reallocating toward businesses trading further below intrinsic value.

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⚠️ Disclaimer / Disclosures
This content is for general informational purposes only. Opinions are those of William Green and do not constitute financial, legal, or professional advice.

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