Robert Robotti, President and CIO of Robotti & Company Advisors, joins host Michael Mauboussin to explore a lifetime shaped by value investing. With deep roots in accounting and formative experiences auditing firms like Tweedy, Browne, Bob shares how those early exposures led him to a career buying underfollowed, undervalued companies. In this episode, Bob discusses how his contrarian approach has thrived amid market inefficiencies, especially in cyclical industries and under-the-radar public firms. He breaks down key investments, including Builders FirstSource and Tidewater, and explains why capital allocation, aligned incentives, and patience are critical to long-term success. He also addresses private equity, passive investing, and how AI might affect the future of both business operations and markets — and much more!

Key Topics:

Introduction (0:00)
Bob's upbringing and early exposure to entrepreneurship (2:09)
How auditing Tweedy, Browne sparked Bob's interest in value investing (4:17)
Learning through Tony Pustorino and practical accounting (4:32)
Early influences from Walter Schloss, Joe Reilly, and Tweedy, Browne (5:39)
Experience working with Mario Gabelli (6:57)
Founding Robotti & Company and the original value edge (8:54)
Explaining pink sheet stocks and early investment strategies (10:00)
Philosophy on intrinsic value and discounted investments (14:31)
Mispricings from passive investing and cyclical businesses (16:24)
Views on private equity vs. public markets (19:27)
Being a generalist with deep knowledge in housing and energy (21:45)
Simplified valuation approach and the Builders FirstSource case (23:41)
Portfolio construction, sizing, and turnover explained (28:58)
Maintaining a patient capital base (33:38)
The Tidewater investment: thesis, board involvement, and strategy (36:42)
Capital allocation philosophy: buybacks vs. dividends (49:08)
Executive incentives and importance of management quality (51:02)
How Robotti sees AI impacting business and investing (53:13)
Thoughts on traditional business education and tangible assets (57:13)
Geopolitical risks, China's influence, and global economic concerns (58:03)
And much more!

Mentioned in this Episode:

Robotti & Company Advisors
Tweedy, Browne
Gabelli & Company
Builders FirstSource
Tidewater Inc.
Amrep Corporation
Pulse Seismic Inc.
Museum of American Finance
U.S. Securities and Exchange Commission (SEC)
Lucadia National
Third Avenue Value
Canadian Natural Resources
Think Again by Adam Grant
Grit by Angela Duckworth
Teaming by Amy Edmondson
Quit by Annie Duke

Thanks for Listening!

Be sure to subscribe on Apple, Google, Spotify, or wherever you get your podcasts. And feel free to drop us a line at valueinvesting@gsb.columbia.edu.

Follow the Heilbrunn Center on social media on Instagram, LinkedIn, and more!

Robert Robotti - From Pink Sheets to Portfolio Management: Bob Robotti's Value Investing Journey

Value Investing with Legends