#160 Peter Cundill

The biography of Peter Cundill, as detailed by Christopher Rizzo Gill, explores the multifaceted life of one of the greatest value investors. It chronicles Cundill's 70-year journey, highlighting his professional development, personal challenges, and diverse interests. Drawing from 44 years of meticulous daily journals, the book reveals Cundill's thoughts on investment, physical fitness, and his relentless pursuit of excellence. Despite suffering from a debilitating neurological disease later in life, Cundill remained dedicated to his routines and passions. His life, marked by both routine and extraordinary experiences, underscores his philosophy of continuous learning and resilience.

• The book is a biography of Peter Cundill, a renowned value investor.
• It spans over 70 years of Cundill's life, covering various aspects including his professional career, personal life, and numerous challenges.
• The biography is supported by 44 years of daily journals kept by Cundill, which are intimate, frank, and confessional.

"It is more by way of an epic, describing a journey that spanned more than 70 years, most corners of the globe, and a broad array of human endeavor, commercial, artistic, romantic, and adventurous."

• The book covers Cundill's professional development, love affairs, sporting achievements, and physical challenges.
• The journals also explore his struggles with depression and self-doubt, documenting both successes and failures.

"The journals explore depression and self doubt. They tell not just of successes but also of failures and the lessons learned as a result."

• Cundill had a wide array of interests and was characterized by an insatiable curiosity.
• He was open to trying new things and was committed to learning throughout his life.

"His interests spanned a diversity of disciplines, springing from a genuinely insatiable curiosity, a characteristic he regarded as a vital component in every aspect of life, and especially in his professional life."

• Despite not being naturally gifted at everything, his dedication to the learning process was crucial.

"Mastery often came at a real personal cost because, as he freely confessed, he was far from being naturally gifted at everything. What counted always was the learning process."

• Cundill was a highly successful mutual fund manager and a teacher and mentor.
• He was dedicated to the principles of value investing and was generous with his time in mentoring new practitioners.

"Peter became more than a highly regarded and immensely successful mutual fund manager who made fortunes for himself and others. He was also a teacher and mentor, generous with his time and fully prepared to share his experience with aspiring new practitioners."

• Cundill was afflicted by fragile X-associated tremor/ataxia syndrome, a neurological disease similar to Parkinson's.
• Despite his deteriorating condition, he remained good-natured, humorous, and determined.

"He was entirely without self pity, good natured and full of humorous, and determined never to surrender to hopelessness or despair."

• The book's title, "Routines and Orgies," is inspired by a quote from Aldous Huxley, reflecting the balance between routine and excitement in human life.

"The commonest, one might call it, natural rhythm of human life is routine, punctuated by orgies. Routine supports man's weaknesses, makes the fatigue of thought unnecessary, and relieves them of the intolerable burden of responsibility. Orgies, whether sexual, religious, sporting or political, provide that periodical excitement which all of us crave."

• Cundill began keeping a daily journal at the age of 25, which he maintained for over 40 years.
• The journal served as a confidant for his frustrations and emotions, and a platform for self-reflection.

"Peter made a momentous decision on August 16, 1963, he began to write the journal that he then kept faithfully, day by day for over 40 years."

• The journal entries reveal his thoughts on achieving greatness, his personal struggles, and his professional journey.

"I'm convinced that to achieve real greatness, a person needs above all to have passion, but at the same time, immense discipline, concentration, patience, and an unshakable determination to become a master of his craft."

• Cundill's early life was marked by financial struggles and a rebellious attitude towards parental authority.
• He was deeply influenced by his mother, who contributed significantly to his intellectual life.

"The fact that my family, though well connected, was poor. I essentially rebelled against parental authority from the time dad got back from the war, and it got worse when Greer was born."

• He was obsessed with physical fitness and aimed to be in the top percentile of fitness levels for his age.

"He becomes completely obsessed with physical fitness. He has a goal in his life to have a below 10% body fat. He runs, he cycles, he does all kinds of strenuous physical activities."

• Cundill held various significant positions before starting his own fund, including vice president of Yorkshire Financial Corporation.
• He faced professional challenges, including the imprisonment of his mentor for fraud.

"He was appointed vice president of Yorkshire Financial Corporation, the holding company, general manager of the savings and Loan Company, and the treasurer of the trust company, taking on day to day supervisory control over 100 million in assets."

• Cundill's journal entries reflect his inner monologue and self-criticism, revealing his fears, ambitions, and desire for a fulfilling life.

"I have a real terror of doing a bad job, but this has a positive side effect as a spur to performance. My shyness and awkwardness with things unfamiliar can make me brash and egocentric, and I fear this characteristic, too."

• He believed in living a life full of rich experiences and was wary of the corrupting influence of ambition.

"I really want to lead a useful life. It's a really interesting, and, I think, admirable goal to learn not only to make, but to keep friends and to feel that I am succeeding and filling my life with rich experience at all times."

• Cundill traveled extensively, averaging over 100,000 miles a year, and viewed life as a great adventure.
• His travels and experiences around the world shaped his character and outlook on life.

"You need to get into some situations which makes your gut tight and your balls tingle. I think I can now afford a few hates. I hate people who are imprecise and I hate those who want to create chaos and mayhem in the world."

• Cundill's life was marked by a relentless pursuit of excellence, a commitment to learning, and a desire to live life to the fullest.
• His journals provide a unique insight into his thoughts, struggles, and achievements, making the biography a compelling read.

"There are going to be incredible changes in the next 40 years of my life, and I look forward to them, whatever they may be."

These comprehensive notes capture the key themes and ideas discussed in the transcript, providing a detailed overview of Peter Cundill's life and philosophy as presented in the book.

• Peter finds joy in challenging and dangerous activities to feel alive.
• He engages in extreme sports and risky endeavors to escape the monotony of everyday life.

"Peter wants to feel really alive. And so he goes out and purposely puts himself into dangerous or painful situations so he can feel at the time he's terrified, maybe very many cases, very, very uncomfortable."

• Explanation: Peter deliberately seeks out dangerous situations to experience heightened states of being, which makes him feel more alive.

• Peter struggles with the idea of marriage and domestic life.
• He prioritizes his professional ambitions over personal relationships.

"The loss is painful. And yet I'm doing good professional work. I'm probably better off as a bachelor because my primary ambition is to be a great professional."

• Explanation: Peter acknowledges the pain of losing a relationship but believes his professional ambitions are better served by remaining single.

"The reason why I'm still a bachelor is because I often yearn to escape all emotional conflict and just exist on my own."

• Explanation: Peter prefers solitude to avoid emotional conflicts, which he finds disruptive to his peace of mind.

• Peter was a student of Benjamin Graham and believed in the margin of safety.
• He questioned his boss's capabilities and the risks taken in the company.

"After eight years, I'm forced to question whether Trebel, that's his boss, has reached the limit of his capabilities. He now seems more emotional than rational, intellectually quite shallow, and incapable of seeing the bigger picture."

• Explanation: Peter doubts his boss's ability to lead effectively, noting a shift from rational to emotional decision-making.

"The more I think about this, the more I recognize that reputation and credibility are actually all we have to sell."

• Explanation: Peter emphasizes the importance of maintaining reputation and credibility in the investment business.

• Peter experienced significant stress and a mini mental breakdown due to professional uncertainties.
• He was deeply affected by his boss's legal troubles and the potential impact on his career.

"Judging from Treble's general demeanor, Peter suspected that a serious crisis might be looming. This unquantifiable uncertainty left Peter feeling insecure about his entire professional life, and he suffered what he called a mini mental breakdown."

• Explanation: The instability in his professional environment caused Peter severe stress, leading to a mental breakdown.

• Peter discovered Benjamin Graham's writings, which profoundly influenced his investment strategy.
• He developed his unique "net net" sheet for evaluating investments.

"Goodman devotes chapter three to Benjamin Graham and the margin of safety. It struck me like a thunderbolt. There before me was the method, the solid theoretical backup to selecting investments based on the principle of realizing underlying value."

• Explanation: Peter found a clear investment methodology in Benjamin Graham's work, which became the foundation of his investment philosophy.

• Peter maintained rigorous fitness routines to ensure mental agility and endurance.
• He believed physical fitness was crucial for maintaining high levels of mental and spiritual health.

"Excellence as a goal in and of itself had been drummed into him from early boyhood, particularly by his mother, and he had spent a lot of time considering how it might most effectively be pursued."

• Explanation: Peter was driven by a lifelong pursuit of excellence, influenced by his upbringing.

"Lack of physical activity destroys the naturally good condition of every human being, while movement and methodical physical exercise save it and preserve it."

• Explanation: Peter quotes Plato to emphasize the importance of physical exercise for maintaining overall well-being.

• Peter experienced tension between his desire for independence and the constraints of family life.
• He found family life to be somewhat claustrophobic and yearned for his old bachelor independence.

"The dangers of my impatience with the claustrophobic aspects of wedded bliss and family life are real enough. I must never allow myself to succumb to them."

• Explanation: Peter acknowledges the real dangers of his impatience with family life and the need to manage these feelings to avoid negative consequences.

These notes encapsulate the key themes and ideas discussed in the transcript, providing a detailed and comprehensive overview suitable for study or examination purposes.

• The importance of self-reliance in a relationship to minimize conflict.
• Adherence to certain maxims: don't lie, don't make promises you can't keep, and don't quit.
• The complexity of maintaining fidelity and the impact on relationships.

"I think what most characterizes the happy couples that I know is their ability to remain self-reliant on occasion and thereby to de-escalate the grounds for conflict."

• Self-reliance helps in reducing conflicts in relationships.

"Don't lie, don't make promises you can't keep, and above all, don't quit."

• Key maxims for a successful relationship.

"Divorce was never an option, but he was cheating on her constantly. I just don't know if she knew that or not."

• Despite infidelity, the marriage endured due to a commitment to the institution of marriage.

• The strategy of focusing on core competencies and outsourcing other aspects.
• The importance of keeping primary research in-house to maintain focus on identifying investment opportunities.

"Identify the most important activity in your work and then spend all your time doing that."

• Focus on core activities for success.

"By keeping the primary research function, essentially me, in-house, I'm trying to ensure that my main focus, no less than 80% of my time, is based on identifying investment opportunities for the fund and our other clients."

• Retaining core research functions to maintain focus and quality.

"The danger in any investment counseling firm is that the principal officer who develops a reputation for sound investment decisions becomes an administrator and is taken away from his primary role."

• Avoiding administrative distractions to maintain the quality of investment decisions.

• Strategies to overcome depression, including focusing on positive thoughts and drawing inspiration from others.
• The impact of midlife crises and temporary poor performance on mental health.

"It was a make or break day, which showed me that the spirit can always triumph, although you have to quash the negativity and fatalism with absolute determination and just cling to the positive."

• The importance of determination and positive thinking in overcoming depression.

"Waite's plight made him see his own situation in a different light."

• Drawing inspiration from others' hardships to gain perspective.

"What drove me to the verge of suicide was not really the ebb and flow of the investment business with its daily measurement that I can cope with, but I had begun to see myself as burnt out."

• The feeling of burnout and loss of support contributing to suicidal thoughts.

• A unique blend of stoic and epicurean philosophies.
• A series of personal maxims and tips for a balanced and fulfilling life.

"Exercise between half an hour and 2 hours every day. Do more on Saturdays. Take one day off every two months. Keep your body fat at less than 10%."

• Emphasis on physical health and regular exercise.

"Be curious. Never stop learning. Once a year, run a marathon. Once a year, do something that scares the shit out of you."

• The importance of continuous learning and challenging oneself.

"Seek balance through harmonizing the different aspects of life, physical, spiritual, emotional, sexual."

• Striving for balance in all aspects of life.

"Be humble, but believe in yourself."

• Balancing humility with self-confidence.

• The creation of optimistic and pessimistic personas to manage mental states.
• Self-reflection and self-motivation through inner dialogue.

"You now have all the elements that it takes to reach the very top. You have what it takes to be rich and famous. You have what it takes to be a leader of men."

• Self-motivation and recognition of one's potential.

"As an anecdote to the negative thoughts which still occasionally obtrude from that old Pete Cunhild, I have created an optimistic character in the form of Frank Cunhild."

• Creating optimistic personas to counter negative thoughts.

"In any event, this is rebirth time. I am being pushed to do new things. It is a time of high adventure that will probably be accompanied by some turbulence."

• Viewing life changes as opportunities for new adventures and growth.

• The emotional turmoil of dealing with a loved one's terminal illness.
• Balancing professional obligations with personal crises.

"Joni said that her blood tests and scans showed that she has lots of cancer, the same as her mother. She is scared."

• The initial shock and fear upon receiving a terminal diagnosis.

"For the first time, I am frightened for her."

• The deep emotional impact of a spouse's terminal illness.

"She continues to lose weight. Soon we shall have a judgment. For the first time, I am frightened for her."

• The ongoing struggle and emotional strain of dealing with a terminal illness in a loved one.

"She's given the diagnosis for nine to twelve months to live. He still decides. He knows his wife has only a short time left and he's still going out and traveling all over the world for work obligations."

• The conflict between professional duties and personal crises.

• Peter faced the imminent death of his wife, Joni, by adhering to his routines despite the emotional turmoil.
• He found solace in the notion that life is impermanent and that one begins dying from birth.
• Peter struggled to accept Joni's illness but maintained his routines to cope.

"I think that you can lose your fear of death by acknowledging that you are already dying from the moment you emerge from your mother's womb. Your body is a form that has no permanence."

• Peter's philosophical approach to death and the impermanence of life.

"I find that I can only deal with the prospect of J's passing by sticking to all my routines as far as possible, reprehensible as some would feel."

• Peter's reliance on routines to manage the emotional strain of Joni's illness.

• Joni showed remarkable strength, recovering enough to walk shortly after surgery.
• Peter treasured their final moments together, filled with both laughter and serious exchanges.
• Joni's death was a painful process, but Peter and her children supported her throughout.

"Unlikely as it had seemed, Joni was strong enough to return home and a week later she was walking on her own."

• Joni's unexpected recovery and strength.

"I spent several hours giggling with Jay before I faded. Although there were some serious and memorable moments, I told her how she had taken care of me. She said I had given her a wonderful life. I shall treasure the exchange."

• The emotional depth of Peter and Joni's final moments together.

"During the night, Joni awoke frightened of the wind. Peter held her tightly until she slept again."

• Peter's comfort and support for Joni during her final days.

• After Joni's death, Peter's health deteriorated significantly.
• He experienced extreme fatigue, loss of strength, and balance issues, but continued his routines.
• Peter grappled with the balance between enjoying his remaining life and leaving a legacy.

"My balance is unreliable. I sometimes suffer extreme fatigue. My strength is slipping away enough that I notice it from week to week."

• Peter's physical decline and the challenges it brought.

"There seems to be some clear alternatives. Fight or give up. I know the answer. Spend or save. This is a different question. I do not want to deprive myself of the fruits of my labors, but at the same time, I want to leave a material legacy. There must be a balance in this."

• Peter's internal conflict about how to spend his remaining time and resources.

• Peter and his long-time friend Chris worked on compiling Peter's journals into a book.
• The process allowed Peter to relive his life and provided a sense of purpose.
• Despite his illness, Peter's memory and intellect remained sharp.

"Then we turned our attention to the journals, of which there are nearly 300 going back to 1963, all handwritten. How crazy is that? I realized that the material was original, frank and quite eccentric and that the venture was actually going to be fun."

• The extensive and unique nature of Peter's journals.

"For me, this exercise was invaluable because the readings often prompted him to explain or expand on his journal. Revisiting the youthful Peter Kunto was often very funny, and laughter echoed around the apartment, as it had not done in a while."

• The therapeutic and joyful aspects of revisiting Peter's past through his journals.

• Despite his deteriorating condition, Peter continued to engage in activities he enjoyed, such as going to the theater and traveling.
• His final piece of advice emphasized patience and long-term thinking in investing.
• Peter's indomitable spirit allowed him to live fully until the very end.

"The mantra is patience, patience and more patience. Think long term and remember that the big rewards accrue with compound annual rates of return."

• Peter's investment advice, reflecting his long-term perspective.

"He wound up going to the theater like 30 different times. He traveled to Egypt, went all these different countries. He tried to push life and fill it with as many experiences as possible right up to the very, very end."

• Peter's determination to continue experiencing life despite his illness.

• Phyllis Ellis, a former girlfriend, accompanied Peter on a business trip to Bermuda, highlighting the extent of his physical decline.
• Despite his frailty, Peter maintained his sense of humor and desire to live fully.
• The trip illustrated the challenges and emotional toll of caring for someone with a debilitating illness.

"Peter immediately rejected the hired nurse. He demanded that I take over the role of caregiver, chief bottle washer, changer of diapers, shower and shaver, feeder of vanilla ice cream, wiper of drool, tv channel surfer, Kindle operator and dresser."

• The comprehensive and challenging nature of Phyllis's caregiving duties.

"Though I tell the story with humor on a couple of occasions, the near misses could have been fatal. You could have died, I said as I sat on the floor with him after he smashed into the corner of the bureau. He smiled, a trickle of blood rolling from his forehead. And said, well my dear, well my dear, you were missing the point. At least I would have been with you."

• The emotional and physical challenges of Peter's condition, coupled with his unwavering spirit.