The reason I’ve been able to achieve very high rates of return (23% CAGR) over the last 5 years is obviously partly because of luck — and less obviously partly due to exercising Charlie Munger’s wisdom:
“Less is more.”
“Less is more.”
If someone offered me world class research, access to the brightest minds in business, superior trade ideas, top investment themes and all the thing for just $1 — I’d refuse.
And so should you.
It will confuse the living daylights out of you. Your performance will stink.
And so should you.
It will confuse the living daylights out of you. Your performance will stink.
We live in the golden age of information. There is abundance of information, data $ opinions to go with it.
So much so, it is becoming harder & harder to exercise your judgement with clarity so that you can make the right business and investment decisions that will pay off.
So much so, it is becoming harder & harder to exercise your judgement with clarity so that you can make the right business and investment decisions that will pay off.
Just as important is keeping a realistic expectation of what’s possible. Don't to convince yourself there are 100s of great ideas out there.
As Munger explains, even the great investors only have 1 or 2 opportunities every single year which “might” work.
As Munger explains, even the great investors only have 1 or 2 opportunities every single year which “might” work.
Outperforming some benchmark or achieving an above-average rate of return is actually so hard and extremely risky that it makes sense for those who want to be on autopilot to just exercise one same idea each & every year.
Continue to slowly buy some global stocks. $VT $ACWI
Continue to slowly buy some global stocks. $VT $ACWI
I don't think the goal is to pay for & consume a plethora of research with an unrealistic expectation it will make you better.
It won't.
If this research had a guarantee it will work, do you think these content producers would be selling it for small bucks?
It won't.
If this research had a guarantee it will work, do you think these content producers would be selling it for small bucks?
So what is the goal?
I think Ray Dalio spelled it out in his book The Principals quite well. Surround yourself with people that have a proven track record (transparency).
People who will not be your "yes men".
I think Ray Dalio spelled it out in his book The Principals quite well. Surround yourself with people that have a proven track record (transparency).
People who will not be your "yes men".
Become radically open-minded, as your challenged by your mastermind group on each & every decision you make.
Instead of getting any old tip from a newsletter on what to buy or sell, stop and remember that "less is more."
Ask yourself: “How might I be wrong with this idea?”
Instead of getting any old tip from a newsletter on what to buy or sell, stop and remember that "less is more."
Ask yourself: “How might I be wrong with this idea?”
Open yourself up to critical feedback so that you can protect your capital from awful decision making.
Instead of focusing on more ideas, focus on less to gain clarity & focus. Place your ego aside, let others criticize you & improve as a result.
It will help you outperform!
Instead of focusing on more ideas, focus on less to gain clarity & focus. Place your ego aside, let others criticize you & improve as a result.
It will help you outperform!
