What Makes A Good Investor? | Graham Weaver

Best practices from a top CEO & Stanford prof

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Today, we're going to do something a little different on this channel.

We're going to interview a highly successful private equity CEO…and yes we'll get his economic & market outlook for 2025.

But, we'll also delve into his insights for achieving success — in investing, entrepreneurship & life in general.

Graham Weaver is the founder and managing partner of Alpine Investors, a people-driven private equity firm that invests in software and services businesses.

He serves on the faculty at Stanford University's Graduate School of Business where he teaches a top-rated strategic management course.

And he's also a highly popular personal development influencer, with millions of followers across social media.

Graham also happens to be one of my former business school classmates. I witnessed him begin his private equity firm from his dorm room there.

He's a truly remarkable individual and I predict you're going to highly enjoy today's discussion.

To learn how to become a better investor in the years ahead, click here or on the video below:

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SET YOURSELF UP FOR SUCCESS IN 2025: The year end is approaching fast. Schedule a free, no-commitment consultation with one of Thoughtful Money’s endorsed financial advisors to identify the right steps (e.g., tax loss harvesting, portfolio rebalancing) to secure your 2024 investment returns and position your portfolio advantageously for 2025

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Adam’s Notes: Graham Weaver (recorded 12.16.24)

EXECUTIVE SUMMARY:

• Graham’s economic and market outlook for 2025 highlights a divide between public and private markets. Public markets are thriving, driven by expectations of AI-driven productivity gains and anticipated interest rate cuts. In contrast, private markets remain stagnant due to inflated valuations from past acquisitions and the impact of interest rates rising by 500 basis points over the past two years. This shift has reduced valuations and led to a slowdown in mergers and acquisitions, particularly for companies purchased at high multiples during the previous market cycle.

• Graham’s investment philosophy prioritizes businesses with strong cash flows rather than speculative growth models. He focuses on intrinsic value rather than relying on the “greater fool theory,” which depends on reselling assets at higher prices without creating actual value. He drew parallels between the current AI revolution and the early 2000s Internet boom, recognizing AI’s transformative potential while cautioning against speculative investments in models lacking clear fundamentals. This approach ensures Alpine builds sustainable value through operational enhancements rather than market speculation.

• Alpine’s success was built through persistence and resilience. Graham shared that Alpine’s first fund lost money and that the firm faced significant struggles during the 2008 recession. Despite these early setbacks, he emphasized the importance of incremental progress and long-term commitment. He cited his father’s experience as a veterinarian, building a business brick by brick, as inspiration for Alpine’s steady and deliberate growth. Graham noted that it took 14 to 15 years before Alpine gained stability, demonstrating the value of patience and consistent effort.

• Graham outlined the key traits of successful investors and entrepreneurs. For investors, he stressed the importance of