Getting Rich vs Staying Rich (A must-read thread):
You must have heard of the Buffett and Charlie.
But 40 years ago there was a third member of the group, Rick Guerin.
Warren, Charlie, and Rick made investments and interviewed business managers together.
Then Rick disappeared.
You must have heard of the Buffett and Charlie.
But 40 years ago there was a third member of the group, Rick Guerin.
Warren, Charlie, and Rick made investments and interviewed business managers together.
Then Rick disappeared.
@MohnishPabrai once asked Buffett what happened to Rick and Warren said, “Charlie and I always knew that we would become incredibly wealthy.
We were not in a hurry to get wealthy as we knew it would happen eventually.
Rick was just as smart as us, but he was in a hurry.
We were not in a hurry to get wealthy as we knew it would happen eventually.
Rick was just as smart as us, but he was in a hurry.
In the 1973–1974 downturn, Rick was on leverage with margin loans and the stock market went down almost 70% in just two years & he got margin calls.
He was forced to sell his Berkshire stock at just $40 per share. (Today, you do know the value of one share of Berkshire right?)
He was forced to sell his Berkshire stock at just $40 per share. (Today, you do know the value of one share of Berkshire right?)
Warren, Charlie, and Rick were equally skilled at getting wealthy.
But Warren and Charlie had the most essential skill of staying wealthy.
As @nntaleb says: Having an edge and surviving
are two different things: the first requires the second. You need to avoid ruin at all costs.
But Warren and Charlie had the most essential skill of staying wealthy.
As @nntaleb says: Having an edge and surviving
are two different things: the first requires the second. You need to avoid ruin at all costs.
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