We believe that a multidisciplinary approach is essential for every long-term investor. One of the most practical books we have found on the topic is “An Investment Thinking Toolbox”, by Daniel Sun Zhang, published in 2021. In this episode, we have the author on the show to discuss some of the 11 most important mental models for investors, the compounding machines called serial acquirers, and Zhang’s role as Director of Acquisitions at Teqnion.

For more info about the podcast, go to the episode page.

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Episode Chapters

(00:00) Intro to Daniel Zhang & ”An Investment Thinking Toolbox”

(09:48) Intro to Mental Models

(13:40) Circle of Competence

(17:32) Unknown Unknowns

(24:34) Anchoring & Chris Sacca

(30:16) Survivorship Bias

(41:07) The seven sins of Confirmation Bias

(52:08) Serial acquirers & Teqnion

(1:01:14) Daniel’s role as Director of Acquisitions

(1:07:40) Using mental models when buying private companies

(1:15:02) Reading inspiration for life and investing

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Books Mentioned

An Investment Thinking Toolbox - Daniel Sun Zhang (2021)

Buy "An Investment Thinking Toolbox" in the Nordics: https://www.adlibris.com/se/bok/an-investment-thinking-toolbox-9789188849960

Buy "An Investment Thinking Toolbox" outside the Nordics: https://www.amazon.co.uk/dp/9188849961/ref=cm_sw_r_cp_api_glt_fabc_BNJ1AR0DRFC63FP5XGN1

Brief Answers to the Big Questions - Stephen Hawking (2018)

Buffett's Shareholder Letters: https://www.berkshirehathaway.com/letters/letters.html

Books by Nassim Taleb:

Fooled by Randomness (2001)
The Black Swan (2007)
The Bed of Procrustes (2010)
Antifragile (2012)
Skin in the Game (2018)

Before the Coffee Gets Cold - Toshikazu Kawaguchi (2015)

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Companies Mentioned

Amazon
Berkshire Hathaway
Teqnion

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More on Daniel Sun Zhang

LinkedIn: https://se.linkedin.com/in/daniel-zhang-31900b26

Teqnion: https://www.teqnion.se/

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What is Investing by the Books?

Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis.

Visit the website: http://www.investingbythebooks.com/

Follow on Twitter: https://twitter.com/Investbythebook

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What is Redeye?

Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality.

Visit the website: https://www.redeye.se/

Follow on Twitter: https://twitter.com/Redeye_

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Disclaimer

Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

#11 Daniel Sun Zhang: An Investment Thinking Toolbox

Investing by the Books