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

Bob's upbringing and early exposure to entrepreneurship

How auditing Tweedy, Browne sparked Bob's interest in value investing

Learning through Tony Pustorino and practical accounting

Early influences from Walter Schloss, Joe Reilly, and Tweedy, Browne

Experience working with Mario Gabelli

Founding Robotti & Company and the original value edge

Explaining pink sheet stocks and early investment strategies

Philosophy on intrinsic value and discounted investments

Mispricings from passive investing and cyclical businesses

Views on private equity vs. public markets

Being a generalist with deep knowledge in housing and energy

Simplified valuation approach and the Builders FirstSource case

Portfolio construction, sizing, and turnover explained

Maintaining a patient capital base

The Tidewater investment: thesis, board involvement, and strategy

Capital allocation philosophy: buybacks vs. dividends

Executive incentives and importance of management quality

How Robotti sees AI impacting business and investing

Thoughts on traditional business education and tangible assets

Geopolitical risks, China's influence, and global economic concerns