Investment Wisdom✓

What’s a book you will never stop recommending?

Warren Buffett: “In investing, I’m in a no-call strike business, which is the best business you can be in. I can look at a thousand different companies, and I don’t have to be right on every one of them, or even 50 of them, so I can pick the ball I want to hit.”

Buffett: “The trick in investing is just to sit there and watch pitch after pitch go by, and wait for the one right in your sweet spot. And if people are yelling, ‘Swing, you bum!’ ignore them.” The full documentary ($):

“[Good investing] requires insulating yourself from popular opinion. You simply cannot pay attention to it. You’d be better off, just sitting and thinking a little bit.” — Warren Buffett

The full Q&A:

If you can avoid the big mistakes, you’ve won half the battle.

Poor Charlie’s Almanack.

“The game is being able to recognize a good idea when you rarely get it. Opportunity comes to the prepared mind.” — Charlie Munger

Warren Buffett: “The most important quality for an investor is temperament, not intellect.” A falling price can make a sound thesis feel wrong. A rising price can make a weak thesis feel right. The advantage belongs to the investor who can separate what the market is doing from what the business is doing.

“The stock market is filled with individuals who know the price of everything, but the value of nothing.” — Phillip Fisher

“We have three baskets for investing: yes, no, and too tough to understand.” — Charlie Munger

Charlie Munger: “It isn't that we were so good at doing things that were difficult. We were good at avoiding things that were difficult, and finding things that are easy.”

The full Q&A:

The most dangerous trade is the one that wins despite a bad process. You credit your skill, but you owe Lady Luck.

Envy makes a wealthy person feel poor. Gratitude lets a modest one feel rich.

"Extreme patience combined with extreme decisiveness. You may call that our investment process. Yes, it's that simple." — Charlie Munger

“We don’t have to be smarter than the rest. We have to be more disciplined than the rest.” — Warren Buffett

Humans are wired for action, but markets usually reward sitting still.

Warren Buffett: “90% of the people that buy stocks don't think of them the right way. They think about them as something they hope goes up next week.” “I think about what the company is going to be worth 10–20 years from now.”

The full interview:

"Bad news is an investor's best friend. It lets you buy at a marked-down price." — Warren Buffett

“I learned to go into business only with people whom I like, trust, and admire.” ― Warren Buffett