Investing Tag Archive

Think more before you act

(Excerpt from The Almanack of Ravikant) We waste our time with short-term thinking and busywork. Warren Buffett spends a year deciding and a day acting. That act lasts decades....

Investing, Nonlinearity Read More

Value investing is about identifying mispricing

(Excerpt from Staring into the Valuation Abyss) I think there is a lot of confusion out there about what Value investing is. Lots of people seem to think it’s about buying really crappy companies for low multiples....

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Compounding is returns leveraged with time

(Excerpt from Last Man Standing by Morgan Housel) … compounding is just returns leveraged with time. Earning a 20% return in one year is neat. Doing it for three years is cool. Earning 20% per year for 30 years...

Investing, Nonlinearity Read More

Business and Investing are multi-disciplinary

(Excerpt from A Few Things I’m Pretty Sure About by Morgan Housel) An engineer can have a successful career knowing nothing other than engineering. Same for a chemist, meteorologist, or radiologist. Business and...

Business, Investing Read More

Business first, management second

(Excerpt from Charlie Munger’s ‘Bag of Tricks’) “We have a very peculiar way of looking at things. We want to buy something that’s intrinsically a very good business, meaning that an idiot could run it and...

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Time is the important driver of investment returns

(Excerpt from The Psychology of Money by Morgan Housel) As I write this Warren Buffett’s net worth is $84.5 billion. Of that, $84.2 billion was accumulated after his 50th birthday. $81.5 billion came after he...

Investing, Nonlinearity Read More

BCG Growth Share Matrix

(Excerpt from The Star Principle by Richard Koch) There is a branch of business theory called strategy , which was invented by a new consulting firm, the Boston Consulting Group (BCG), in the 1960s. BCG’s most famous...

Investing, Matrix, Strategy Read More

Investing strategies need to evolve

(Excerpt from Keep Running! By Morgan Housel) In his book Investing, Robert Hagstrom wrote about strategies that once worked but eventually withered: In the 1930s and 1940s, the discount-to-hard-book-value strategy...

Adaptability, Investing, Map Is Not Territory Read More

Evaluate each business based on a couple of unique factors

(Excerpt from University of Berkshire Hathaway by Daniel Pecaut and Corey Wrenn) Each business will have a couple of unique factors that are essential in evaluating its progress. Often, those unique factors are not...

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This is probably why Buffett bought airlines

(Excerpt from University of Berkshire Hathaway by Daniel Pecaut and Corey Wrenn) Buffett said this is the number one question he would ask of himself: why is Berkshire investing in capital-intensive businesses?...

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