Introducing Hard Lessons

Summary

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Thoughts on the Market — "Introducing Hard Lessons"

Host: Andrew Sheets (Morgan Stanley)
Date: February 16, 2026

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Episode Overview

This special episode introduces listeners to a new Morgan Stanley podcast series, "Hard Lessons." Host Andrew Sheets emphasizes how this pod will delve into the formative experiences—both victories and setbacks—of legendary investors. The central theme is learning from mistakes as much as from successes, offering listeners real-world insight into the unpredictable world of investing.

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Key Discussion Points and Insights

The Purpose & Focus of "Hard Lessons"

• Andrew Sheets kicks off the episode by underscoring the idea that both the highs and lows shape a successful investment career:

  • “It's both the highs and lows that define a career and investment success. Learning from both is essential, and hopefully this podcast gives you a little better insight into how that works in the real world.” — Andrew Sheets [00:35]

• The new series spotlights iconic investors such as John Gray, Gene Hines, and Lauren Hochfelder. Rather than just showcasing their triumphs, "Hard Lessons" dives deep into:

  • Major mistakes
  • Difficult learning moments
  • How these shaped their investment philosophies

What Makes Great Investors?

• Notable Quote:

  • “When you buy everything and it goes up, it doesn't really train you to be a great investor, right? It's the experience. It's these hard lessons that make all the difference.” — Speaker B [00:58]

• The show’s premise is that enduring and reflecting on failures is integral to long-term investment prowess.

Behind the Scenes: Unfiltered Investor Stories

• Speaker C explains the show’s format:

  • “Hard Lessons, a new series from Morgan Stanley where iconic investors reveal the critical moments that shaped who they are today.” [01:06]

• Every episode features two out-of-consensus calls by the investor:

  • One “on the money” prediction
  • One misstep that didn’t pan out
  • “Every episode features two out of consensus calls. One that was on the money and one that wasn't.” — Speaker C [01:21]

Memorable Stories and Candid Reflections

• Anecdotes from Gene Hines, highlighting the emotional rollercoaster of investing:

  • “The next day, the stock is down 90% and my colleague said to me, Gene, there's nothing you can do.” — Gene Hines [01:13]

• The value of adversity:

  • “I'm grateful that we stubbed our toe because that caused us to really dig deep, to understand how did we get this wrong? There were many moments of exhilaration and many moments of those gut punched to the stomach.” — Gene Hines [01:27]

• Embracing mistakes:

  • “It was like, oh my gosh, how stupid could I be? Why would I paid that price for this?” — Speaker B [01:40]

  • “Who doesn’t like talking about their mistakes?” — Gene Hines [01:52], highlighting an atmosphere of transparency and humility.

The Educational Value

• According to the hosts and guests, true lessons—and thus long-term success—come more from failures than from wins:
  • “Always better to talk about the winners, although you learn more from the losers.” — Speaker C [01:56]

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Notable Quotes & Memorable Moments

• Andrew Sheets:

  • “It's both the highs and lows that define a career and investment success. Learning from both is essential...” [00:35]

• Speaker B:

  • “When you buy everything and it goes up, it doesn't really train you to be a great investor, right? It's the experience. It's these hard lessons that make all the difference.” [00:58]
  • “It was like, oh my gosh, how stupid could I be? Why would I paid that price for this?” [01:40]

• Gene Hines:

  • “The next day, the Stock is down 90% and my colleague said to me, Gene, there's nothing you can do.” [01:13]
  • “I'm grateful that we stubbed our toe because that caused us to really dig deep, to understand how did we get this wrong? There were many moments of exhilaration and many moments of those gut punched to the stomach.” [01:27]
  • “Who doesn’t like talking about their mistakes?” [01:52]

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Timestamps & Segment Guide

| Timestamp | Segment Description | |-----------|-------------------------------------------------------------------------------------| | 00:00 | Andrew Sheets introduces "Hard Lessons" & discusses its focus on real-world insights | | 00:58 | Speaker B on why ‘hard lessons’ matter | | 01:06 | Speaker C outlines the podcast's format and guest lineup | | 01:13 | Gene Hines shares an anecdote about a dramatic stock loss | | 01:21 | Speaker C details the two-call episode structure (hit & miss) | | 01:27 | Gene Hines reflects on the importance of mistakes and perseverance | | 01:40 | Speaker B voices self-doubt after an investing error | | 01:52 | Gene Hines encourages open conversations about mistakes | | 01:56 | Speaker C highlights why losses are educational | | 02:11 | Conclusion: Where to find "Hard Lessons" |

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Summary

This introduction to "Hard Lessons" sets the stage for a candid, introspective look at the investment world. Morgan Stanley's new podcast aims to humanize legendary investors by spotlighting their missteps as much as their triumphs. Listeners can expect unvarnished stories, honest admissions of mistakes, and practical wisdom—all designed to educate and inspire new generations of market participants.

• Listen to "Hard Lessons" on YouTube, MorganStanley.com, or any podcast platform.

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Transcript

[A]

Hello, I'm Andrew Sheets, global head of fixed income research at Morgan Stanley and one of the regular voices on the podcast. You're here listening because you want to know more about the forces shaping the markets. And if you've ever been curious about the people who move markets, you should know about a new podcast from Morgan Stanley. It's called Hard Lessons, and it features conversations with legendary investors like John Gray, Gene Hines, and Lauren Hochfelder. What I like so much about this podcast is that it focuses not just on where investors have succeeded, but where they've struggled and what investors could learn from each. As somebody who's now worked for Morgan Stanley for the last 20 plus years, I can tell you from experience that it's both the highs and lows that define a career and investment success. Learning from both is essential, and hopefully this podcast gives you a little better insight into how that works in the real world. Have a listen.

[B]

When you buy everything and it goes up, it doesn't really train you to be a great investor, right? It's the experience. It's these hard lessons that make all the difference.

[C]

Hard Lessons, a new series from Morgan Stanley where iconic investors reveal the critical moments that shaped who they are today.

[D]

The next day, the Stock is down 90% and my colleague said to me, gene, there's nothing you can do.

[C]

Every episode features two out of consensus calls. One that was on the money and one that wasn't.

[D]

I'm grateful that we stubbed our toe because that caused us to really dig deep, to understand how did we get this wrong? There were many moments of exhilaration and many moments of those gut punched to the stomach.

[B]

It was like, oh my gosh, how stupid could I be? Why would I paid that price for this?

[C]

In conversation with Morgan Stanley leaders, legendary investors take us behind the scenes of their boldest calls. I don't know if that makes you.

[D]

Nervous or not, but who doesn't like talking about their mistakes?

[C]

Find and follow Hard Lessons, an original podcast from Morgan Stanley, set the scene for one of the winners. Okay, always better to talk about the winners, although you learn more from the losers.

[A]

Hard Lessons is out now. Watch it on YouTube and morganstanley.com or listen on your favorite podcast platform. We've put links in the show notes.