03-07-2019, 06:49 AM
(03-06-2019, 07:29 AM)fenders53 Wrote: WB's number # rule is don't lose money.
In the end Buffet and Munger got rich over investing in a short list of good companies. They didn't try to be an S&P 500 index fund with 100 positions, or swing trading from stock to stock. There is a lesson in that too. Buy and mostly hold forever has served them well. All you have to do is pick some above average companies and stay in the market for 70 years and it all works out.
Yea, I've always liked that rule...ever notice when he says it it always seems to follow with a chuckle--it's almost like he's joking but serious at the same time or who knows maybe he knows it's easier said then done...
WB, "Rule number one--don't lose money. Rule number two--don't forget Rule number one." LOL
Yes...it's true and he's talked about that diversification keeps you safe but a concentrated portfolio will make you wealthy.
And man...70 years!! He mentioned that at the last Berk meeting, how they were born at the right time with the right desire and skills to have done what they did. That it probably can never be duplicated.
Investing is a not a race it's a marathon.
What struck me about WB and CM is their humor, a sense of humility, and extremely I mean extremely intelligent and quick.
At the meeting, people ask questions, some people try to stump them and they don't. This one guy, he was I believe an Economics Professor from Columbia or Cornell and he asks this really complex financial question. WB laughed and said I have no idea, I don't even know what that means. Then CM responds by saying that anyone asking a complex question like that already knows the answer and doesn't deserve one because he's just trying to prove his own intelligence in front of others--NEXT QUESTION!