I learned investing by losing money, making it, losing money, making it. This is when you develop a set of experiences that are unique to you that define your investment strategy. Don’t be afraid to learn investing by investing.
Concentrating on just a few stocks/businesses early in your investment journey is a great way to learn investing because the outcomes are extreme. You learn what you don't know quickly. You feel the intense greed of a win, and the anguish of a loss.
Of course few in “high finance academic circles” like admitting it because no one wants to promote recklessness but Charlie gets it.
“Extreme outcomes — good or bad — often educate best.”
– Charlie Munger
“Extreme outcomes — good or bad — often educate best.”
– Charlie Munger
Most people that preach diversification built their early wealth and found out who they were by concentrating on their best ideas.
