Thread by @Mjkfinvestment

Glad I just finished reading all of 'Buffett partnership' and 'Berkshires letters' by Warren Buffett yesterday. While I am almost done compiling them in a short book, thought to share some of the most important lines here. Excerpt take from the letter 2013: @Gautam__Baid

• You don’t need to be an expert in order to achieve satisfactory investment returns. But if you aren’t, you must recognize your limitations and follow a course certain to work reasonably well.

1/n

Keep things simple and don’t swing for the fences. When promised quick profits, respond with a quick "no"
• Focus on the future productivity of asset you are considering. If you don’t feel comfortable making a rough estimate of the asset’s future earnings, forget & move on

2/n

No one has the ability to evaluate every investment possibility. But omniscience isn’t necessary; you only need to understand the actions you undertake.

3/n

• If you instead focus on the prospective price change of a contemplated purchase, you are speculating. There is nothing improper about that. I know, however, that I am unable to speculate successfully, and I am skeptical of those who claim sustained success at doing so.

4/n

Half of all coin-flippers will win their first toss; none of those winners has an expectation of profit if he continues to play the game. And the fact that a given asset has appreciated in the recent past is never a reason to buy it.

5/n

• With my two small investments, I thought only of what the properties would produce and cared not at all about their daily valuations. Games are won by players who focus on the playing field – not by those whose eyes are glued to the scoreboard.

6/n

If you can enjoy Saturdays and Sundays without looking at stock prices, give it a try on weekdays.
• Forming macro opinions or listening to the macro or market predictions of others is a waste of time.

7/n

Indeed, it is dangerous because it may blur your vision of the facts that are truly important.

8/n