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🧵Warren Buffett released a masterclass on how to achieve success in business yesterday

Here are my 10 most powerful insights from his annual letter to shareholders 👇 #1: Importance of Mentorship

Acknowledging the influence of a mentor like Charlie Munger can significantly impact one's success in business and investing

Nobody is smart enough to figure it all out alone

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🧵David Einhorn of Greenlight Capital recently sat down with the Masters in Business podcast

Please enjoy my highlights from that interview! 2/

What was your career plan in college?

The thing with me is that I don’t really think too far out into the future

What I try to do is do a really good job at whatever I’m doing, when I’m doing it

And I figure that will create good options for me going forward

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On Saturday May 6, Warren and Charlie answered questions for nearly 5 hours at the Berkshire Hathaway AGM

Here are my biggest takeaways 2/

Do you ever make bad investment decisions because of your emotions?

I can't recall any time in the history of Berkshire that we made an emotional decision

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In December 2022, Mohnish Pabrai shared timeless wisdom with students at @DakshanaIndia

In this thread I share some highlights from those sessions 2/

Life is a journey, and the journey is the destination

We're not heading toward a destination

It's now

Don't miss it

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Todd Combs gifted the book "Ubiquity: Why Catastrophes Happen" by Mark Buchanan to Warren
& Charlie when he started working for Berkshire

In this thread I'll share 10 key concepts from Ubiquity that can help us understand the world better 2/

Power laws: Many natural and social phenomena, such as earthquakes, financial crashes, and wars, follow power law distributions

These patterns are characterized by a few extreme events that occur rarely, while smaller events occur more frequently

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Todd Combs gave a rare interview this week as a prelude to the Berkshire AGM

Here are my highlights 2/

Met Warren Buffett in Fall 2001 at Columbia value investing course

Big takeaway was how much Buffett reads

"The compounding of that knowledge accrues over time... it never goes away, there's no decay rate.

Every one of you can do it. It's free!

But most people don't."

What I'm digging into this week...

-Stan Druckenmiller on equities, currencies & hard landing late 2023
-Rapid failure & innovation at SpaceX by @TrungTPhan
-Epic tale of Japan's trading conglomerates by Rei Saito
-Some things I think by @morganhousel

Sources below Stanley Druckenmiller interview

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Stanley Druckenmiller gave a rare interview last week at the NBIM investment conference

Here are my highlights 2/

At the top of my mind is just how uncertain trying to analyze the environment is going forward

For someone like me who likes to look at history and come up with potential scenarios this is a particularly difficult period

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In late March, Jeremy Grantham was interviewed on The Investor's Podcast by @TreyLockerbie

The episode has gone viral on YouTube, which is crazy for an audio-only podcast!

Here are my highlights from Jeremy Grantham... 2/

The great bubbles are always easy to spot, and it's always claimed that they are not

They stand out like a Himalayan peak out of the plain

These are 2.5 sigma events, the kind that occur every 50-100 years

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Warren Buffett spoke with Becky Quick in Japan earlier this week for 3 hours on a wide range of timely topics

I spent hours combing through the transcript of that interview to pull out my biggest highlights

Here they are...

Source @CNBC 2/

Why are you in Japan for the first time in 12 years, and why have you been loading up on the 5 largest trading houses?

They were selling at what I felt was a ridiculous price

What I'm digging into this week...

-Warren Buffett and Greg Abel talk Japan on Squawk Pod
-Jeremy Grantham on TIP
-@chriswmayer talks 100 Baggers
-Charles Ellis on The Loser's Game
-Tom Gayner chats with @WilliamGreen72

Sources below Warren Buffett and Greg Abel with Becky Quick in Japan: podcasts.google.com/feed/aHR0cHM6L…

"The 3 best operating companies I'm aware of are Costco, Kiewit and Glenair

There is nothing remarkable about the product or field for any of these three

But there is something remarkable about the cultures of all three"

-Charlie Munger 1/🧵 Costco's corporate culture stands out among large retailers, and its success is built on some key ingredients

Let's dive into the aspects that make Costco's culture remarkable 👇

1/ 🧵 Discover the Hidden Gems of ChatGPT-4 💎: A thread on lesser-known but valuable tasks that ChatGPT-4 can perform

Unleash the full potential of this powerful AI! #ChatGPT4 #AI 2/ 💡 Brainstorming Partner: Struggling with creative ideas?

ChatGPT-4 can generate unique concepts for business names, marketing campaigns, product features, or story plots

Turn to this AI for inspiration! #Brainstorming #Creativity

1/ 🌟 Leaping emergent effects are fascinating phenomena that occur when the collective behavior of a system is fundamentally different from the behavior of its individual components

Let's dive into 10 amazing examples of such effects in our world today! 🧵👇 2/ 🦢 Flocking behavior in birds: Witness the mesmerizing patterns created by birds in flight!

Each bird follows simple rules, like maintaining distance & avoiding collisions, yet the complex flocking patterns that emerge are nothing short of breathtaking #NatureIsAmazing

What I'm digging into this week...

-Constellation Software breakdown by Akre's Chris Cerrone

-Bonsai Partners Q4 letter

-Ray Dalio on Richer, Wiser, Happier podcast w/ @WilliamGreen72

-How to calculate ROIC by @mjmauboussin

Sources below Constellation software breakdown: joincolossus.com/episodes/23981…

Thread/

Cover Your Assets: Seth Klarman's 20 Forgotten Investment Lessons of 2008 1/

You cannot predict, you can prepare

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Mohnish Pabrai gave a rare in-person interview with Oxana Dubrovina weeks before the Berkshire meeting

Below are my highlights 2/

Buffett had codified the laws of investing, but few professional investors were following them

For example...
-Make few bets
-Hold those business for multi-year periods

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How did Domino’s Pizza $DPZ crush the market over the last decade (12x vs 3x)?

Through a combination of earnings growth, multiple expansion, and aggressive buybacks

H/t @JohnHuber72

🧵👇 2/

Earnings growth is the first engine of stock market returns

Domino’s grew earnings from $100m to $500m over the last 10 years

Impact: 5x

You have to know all the big ideas across multiple disciplines of science, otherwise you’re like a one-legged man in an ass-kicking contest

Here are 13 books that will make you a better multi-disciplinary thinker 📚 👇

**Heart each one that you personally endorse** Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger by Peter Kaufman

The favorite investing book of @MohnishPabrai

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Charlie Munger shared his wisdom for 2 hours last week during the Daily Journal Annual Meeting

Here's a thread of my highlights! 2/

Q: I noticed our company [DJCO] is using margin debt to purchase overseas securities that aren't being disclosed.

As a shareholder am I entitled to know what overseas security we own on margin?

A: No

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In "The Money Masters" Warren Buffett reveals the 11 characteristics of a wonderful business

Grab a coffee and let's go! 2/

They have a good return on capital without accounting gimmicks or lots of leverage

As Charlie Munger says "Over the long term, it's hard for a stock to earn a much better return than the business which underlies it earns"