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On Something to Ponder - The 20 punch card
#1
“I could improve your ultimate financial welfare by giving you a ticket with only 20 slots in it so that you had 20 punches—representing all the investments that you got to make in a lifetime. And once you’d punched through the card, you couldn’t make any more investments at all. Under those rules, you’d really think carefully about what you did and you’d be forced to load up on what you’d really thought about. So you’d do so much better.” - Warren Buffett

“To me, This (The 20 punch card) concept always seemed like a no-brainer. Obvious that the winner has to bet very selectively, It’s been obvious to me since very early in life. I don’t know why it’s not obvious to many other people.” -Charlie Munger

Just thoughts to ponder on a rainy afternoon,
 - Scoot

"Investors have been so oversold on diversification that fear of having too many eggs in one basket has caused them to put far too little into companies they thoroughly know, and far too much in others which they know nothing about “- Phil Fisher
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#2
After my cash out refinance in March, I cast a pretty wide net and bought a lot of companies. Over the months since I've shrunk the list so that I could refine it to the ones I like the best. Aside from some tax consequences, this seems a better approach than trying to figure out up front what are the best.
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#3
We have 26 positions in our portfolios. We are reaching our goals with them. They are not static, but every move is meant to be an improvement, and most have turned out that way.
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#4
I think I squandered most of my 20 punches in my youth. Like Ron I try to make most of my core moves an improvement. I wish my positions were more static but I need a bad market before I take most of my core positions to max size.

I understand Warren's intentions but he doesn't follow his own rules at times. Berkshire swing trades stocks and then holds KO for 40 years when it probably needed to be trimmed a decade ago. I guess when you buy 10% of AAPL you are allowed a few mistakes
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