The Davis Dynasty

I was unfamiliar with the Davis family until listening to an episode of We Study Billionaires covering both their remarkable investing record both from a growth and longevity perspective and The Davis Dynasty. Whilst the episode was informative, at an hour it could only scratch the surface of an investment record that spanned multiple generations, so I thought I’d pick up the book to dive into it further.

Originally published in 2003, the cover does make it look considerably older than it actually is. If that's enough to put you off, I'd encourage you to look beyond it because there's a great book underneath.

Following the Davis family over more than fifty years, from the post-war period through to the late 1990s, the book provides an excellent account of how one of the great family investing dynasties was built. More importantly, it explores how the principles behind that success were passed from one generation to the next.

This isn’t however merely a story of inherited wealth. In fact, there are points throughout the book where inheritance itself becomes a source of family tension. Instead, it's a story about passing down an investing philosophy. Davis instilled habits of frugality, disciplined stock selection, patience and long term ownership that shaped not only his own success but also that of his sons and grandsons.

It's probably not a book most investors would naturally stumble across. Had it not been for the podcast, I'd likely never have heard of either the Davis family or this book. Through the biographical approach the reader is treated to not just the history of the family but the changing market and investing environment across the decades generations.

I found myself adding countless highlights and notations throughout, not only on ideas relevant to my own investing but also on observations about recurring market behaviour. Whilst history never repeats exactly, it frequently rhymes, and many of the patterns described throughout the book can find parallels over the past couple of decades and through to today.

The final chapter, Investing à la Davis, brings everything together by distilling the family's philosophy into ten core investing principles. Despite originating in the late 1940s and the proceeding 50 year period, they remain just as relevant to investors today.

One that’s maybe off the beaten path and not necessarily that you’d come across in the book shop but earns a rightful home on any investors bookshelf.

Who's It For?

This sits firmly in the camp of long term and value investing.

Despite being written as a family biography, I don't think it will particularly appeal to readers who simply enjoy biographies unless they also have an interest in investing. For investors though, especially those interested in compounding wealth across decades rather than years, this is one of those lesser known books that's well worth discovering.