The Benefits of Zooming Out
If you are a long-term investor, it is pointless to update the quotes for your portfolio on a daily basis. There is simply too much day-to-day noise to make this exercise meaningful ...
Top Ten Highlights From Berkshire Hathaway’s 2022 Annual Meeting
The basic format of Berkshire Hathaway’s annual meeting has remained unchanged for decades. CNBC’s Warren Buffett Archive has annual meeting videos dating back to 1994 and it is interesting to see how the principles expressed by Warren Buffett and Charlie ...
The Digest #110
Charlie Munger Steps Down as Chairman of Daily Journal, ESG and Russia, Maslow's hierarchy of needs, Jack Bogle, Joel Greenblatt, Carl Icahn ...
The Digest #107
Munger's Alibaba Investment, The Battle of Actium, Cyberattack Insurance, Stanley Druckenmiller, Howard Marks ...
The Digest #101
Charlie Munger, Carl Icahn, Venture Capital, Valuable Razors, The "Hawkish" Fed, Guaranteed Misery, Washington's Farewell Address ...
The Digest #100
Berkshire, Activision, Tom Murphy, Empty offices, Short sellers, Stolen Bitcoin ...
The Digest #94
Apple's iMessage Moat, Living to 150, Lords of Easy Money, Buffett's Reading ...
The Digest #92
Charlie Munger, Alibaba, Theranos, IKEA, Ray Dalio, Jeff Bezos ...
The Futility of Hatred
Blind rage manifested as hatred is one of the least productive emotions and is almost guaranteed to impair your decision making capabilities and cause serious errors ...
The Digest #70
Grantham, Berkowitz, Marks, Isaacson, and Tulips ...
The Digest #69
Daily Journal Annual Meeting, Semper Augustus on Berkshire, Civilized Bitcoin Debate ...
The Digest #61
Munger's Letter, BYD, Trust and Mistrust, The Value of Failure ...
Reward and Punishment Superresponse Tendency
Charlie Munger has said that one should never think about anything else when you should be thinking about the power of incentives. Poorly thought out incentive systems cause harm ...
Deprival-Superreaction Tendency
Human beings feel the pain of loss much more intensely than the pleasure of an equivalent gain and there are important consequences stemming from this tendency ...
Capital Allocation: The Financials of a New England Textile Mill
On a spring day in 1964, Warren Buffett received a letter from Seabury Stanton offering to purchase the Buffett Partnership's stake in Berkshire Hathaway. Buffett and Stanton had agreed to a price of $11.50 but Stanton's letter offered only $11.375 ...
The Buffalo News: From Butler to Buffett
From Butler to Buffett provides a great example of the evolution of newspapers from the late nineteenth century up through the consolidation of the industry that was largely complete a hundred years later. Murray Light provides a fascinating account of ...
Twenty Years of Owning Berkshire Hathaway
"Most people overestimate what they can do in one year and underestimate what they can do in ten years." -- Bill Gates Berkshire Textile Mill - 1960s Every person will have a different definition of what counts as "the long ...
Farnam Street’s Great Mental Models
"So whatever you wish that men would do to you, do so to them; for this is the law and the prophets." -- The Golden Rule as expressed in Matthew 7:12 Hanlon's Razor advises us to give others the benefit ...
The Paradox of Trust
Without a baseline level of trust, society will cease to function effectively. How can we decide how trusting to be without exposing ourselves to excessive risk? ...
Avoiding 21st Century Twaddle
Seneca said that "life is long if you know how to use it." But modernity presents us with a nearly infinite number of ways to waste time and fall short of our human potential ...