Our guest for this episode is Thomas “Tom” Russo, a respected global value investor and the managing member of Gardner, Russo & Quinn in the US. Tom has over 40 years of track record as a professional investor and is known for his focus on consumer goods and companies with the capacity to reinvest and the capacity to suffer. In the conversation, Tom brings up two classic books: “Common Stocks and Uncommon Profits” by Phil Fisher, and “Richer, Wiser, Happier” by William Green.

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Our interview with Tom Russo was recorded on 8 May 2026. Leading the conversation is Christian Billinger, investment manager of Billinger Förvaltning. Christian heads his family office Billinger Förvaltning and has done a number of interviews on this podcast, including episode 8 with Lawrence Cunningham and episode 55 with Edward Chancellor.

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For more info about the podcast, make sure to follow us on X: https://x.com/IB_Redeye. We love to hear your thoughts, so please rate and review us. And feel free to tell us about great authors, books, and investors. Thank you. /Eddie with team

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Episode Chapters

(00:00) Intro by Eddie

(01:09) Christian welcomes Tom

(01:36) Introducing the books for this episode

(02:29) Common Stocks and Uncommon Profits

(04:07) Richer, Wiser, Happier (and Money Masters)

(07:37) Takeaways from Omaha 2026

(13:27) Consumer goods investing

(20:27) Consumer goods concerns today vs late 1990s

(23:49) Underinvestments or fundamental behavior shifts?

(25:57) Kit Kat brand example, and good flow in AB InBev

(28:41) Consumers talk lean but eat fat – misperceptions?

(30:56) Coping as an investor in a tough market (Heineken example)

(35:36) When to give up as an investor

(41:32) Focus and brand equity (Campari, Diageo)

(43:31) International growth and competition (Brown-Forman, Unilever)

(47:59) Expanding the investable universe (Alphabet, Eurofins Scientific, Sunbelt Rentals)

(51:59) Netflix case

(55:19) Selling a great business?

(57:46) Bad stewards of capital (Adelphia Communications)

(01:00:06) Good stewards of capital (Richemont)

(01:04:06) Tom’s investment research process

(01:08:02) Most important questions to ask management

(01:10:40) Capital cycle

(01:12:57) Supply vs. demand

(01:14:54) Capital cycle of the spirits industry

(01:17:16) Investment philosophy – Phil Fisher vs. Ben Graham

(01:20:06) Highlights from 40+ years of investing

(01:23:03) How to give back

(01:27:31) Thank you

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Books Mentioned

Common Stocks and Uncommon Profits – Phil Fisher
Richer, Wiser, Happier – William Green
Money Masters – John Train

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Companies Mentioned

Amazon
Berkshire Hathaway
Gen Re
Nestlé
Estée Lauder
Diageo
Weetabix
Harley Davidson
Brown-Forman
Guinness
Grand Metropolitan
Heineken
AB InBev
Kirin
Snow Beer
Baidu
Pernod Ricard
Sazerac Company
Campari Group
Unilever
Martin Marietta Materials
Alphabet
Eurofins Scientific
Sunbelt Rentals
Visa
Netflix
The E.W. Scripps Company
Comcast
Adelphia Communications
Richemont
Uber
DoorDash
Oracle
Anthropic
Jim Beam (Suntory Global Spirits)
Freddie Mac
Fannie Mae

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About the Podcast

Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books

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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/X: 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/X: 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

#84 Tom Russo on Common Stocks and Uncommon Profits

Investing by the Books

#84 Tom Russo on Common Stocks and Uncommon Profits