From "Richer, Wiser, Happier": In 2005, Joel Greenblatt gave the Magic Formula away. He studied over a 2Y period thousands of DIY vs DFM (managed) returns. DIY return = 59% vs 3% for S&P 500. DFM = 84%. DIY investors LOST 25% of performance by making their own decisions. This is a market beating FORMULA with v specific instructions! Simple human intervention destroyed 25% of performance. This game is HARD.

U.S. Navy SEALs have a saying: "plan the dive, dive the plan". The uglier it gets, the more important to stick to the basics and execute.

I recently had the pleasure of a wonderful discussion with @williamgreen72. His recent book below is a wonderful read that I would strongly recommend. The epilogue in particular is a powerful read. William's book and passion is the human and spiritual

amazon.com/Richer-Wiser-H… journey of investors. The brutal, bone crunching challenges that we have to endure to learn and perform. The pursuit of the eternal truths.

One insight our conversation revealed to me is the investment world is filled with truth seekers. In our business, there are potent,

I think one of the most expensive lessons in investing is the over estimation of one's ability to dodge a DD & buy back a phenomenal compounder.

valuation is art, not science

Selling bc it was 30% or 6M expensive... If it is 10x/10Y does it matter? Insane value destruction. Idea generation is really important, but if poorly executed it does not matter.

The willing acceptance to take a hit is part of the journey to the right tail. Skew is 20%pa, >1x 50%+ down @DecaDe for the 3% that make it!!

We had four >-65% DD L2Y. No apologies. Normal journey.

Just finished this book on ALDI. Just LOVED it. Not the best written, but one of the few sources on one of the best businesses in the world bar none. Some things that struck me (there are many):

1) potency of simplicity - same concept executed for 70Y
2) scarcity breeds clarity ALDI’s concept was born in 1948 bc the Albrechts didnt hv the resources to be a full SKU store

3) huge autonomy, decentralization and delegation. Virtually no central functions. They were a €30B co in 2011 that didn’t do central budgets..
- it is run as 100+ independent cos