If you want to be entertained and educated, go watch "best of Charlie Munger" or some similar title on YouTube. There are hours of it.

ToddyHill said:

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I just read a quote of his...."the big money is not made in the buying and selling...but in the waiting."

Well said Mr. Munger. RIP

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I do something similar. I buy good index funds and sit on them. Hardly trade. I make a lot of money.

Infinity....

I, like you, am a buy and hold investor. And also like you, I ditto your comment, "I make a lot of money."

Well done Sir.

Got this from Linkedin.

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Charlie Munger quotes:

1. Investing is where you find a few great companies and then sit on your ass.

2. Like Warren, I had a considerable passion to get rich, not because I wanted Ferrari's - I wanted the independence.

3. You don't have to be brilliant, only a little bit wiser than the other guys, on average, for a long, long time.

4. One of the greatest ways to avoid trouble is to keep it simple... the system often goes out of control.

5. A lot of people with high IQs are terrible investors because they've got terrible temperaments.

6. Knowing what you don't know is more useful than being brilliant.

7. If a business earns 18% on capital over 20 or 30 years, even if you pay an expensive looking price, you'll end up with a fine result.

8. A great business at a fair price is superior to a fair business at a great price.

9. You'd be amazed at how much Warren reads -at how much I read. They think I'm a book with a couple of legs sticking out.

10. The best thing a human can do is to help another human being know more.

11. To get what you want, you have to deserve what you want. The world is not yet a crazy enough place to reward a whole bunch of undeserving people.

12. Spend each day trying to be a little wiser than you were when you woke up. Day by day, and at the end of the day-if you live long enough-like most people, you will get out of life what you deserve.

13. How to find a good spouse? The best single way is to deserve a good spouse.

14. We have three baskets for investing: yes, no, and too tough to understand.

15. Invert, always invert: Turn a situation or problem upside down. Look at it backward.

16. It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be intelligent.

17. It's the work on your desk. Do well with what you already have and more will come in.

18. Mimicking the herd invites regression to the mean.

19. Always take the high road, it's far less crowded.

20. Every time you hear EBITDA, just substitute it with bull****

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Me too!

Guy was genius in my opinion. A lot of his advice revolves around restraint, which humans being so driven by emotion and feelings, is a tough ask for most.

In both business and life he was an advocate of avoiding tripwires. Examples include restraint with alcohol in personal life, and in business restraint with investing just because you have a lot of cash, and holding out only for the most certain opportunities, and just holding cash if no opportunities exist.

Risk avoidance seemed to be a core principle of his. Another champion of risk avoidance is Nassim Taleb. One of my big takeaways from Nassim Taleb's book "Fooled by Randomness" was that to stay in the game for decades, you have to manage risks, you have to be diversified sufficiently in non-correlated positions such that one position going against you can't wipe you out or set you back too far. As a result you have to accept lower returns because diversification results in a return that is the average of your positions.

ToddyHill said:

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Infinity....

I, like you, am a buy and hold investor. And also like you, I ditto your comment, "I make a lot of money."

Well done Sir.

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I've never sold a share of AAPL. I am ashamed to admit that I once trimmed a position in BRK.B. Just sit back and watch my wealth grow over time.

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14. We have three baskets for investing: yes, no, and too tough to understand.

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My favorite!

SuhrThang said:

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Compound interest is the greatest force on the planet.

Albert Einstein.

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I had a multi-billionaire client once who liked to pose the hypothetical question whether you should choose an amount of gold equal in weight to the weight of the world, or $1 that had been invested in the year 0 at 5% interest compounded annually.

It's not even close. As of the year 2000, the $1 invested would have grown to $2,277,240,194,870,240,000,000,000,000,000,000,000,000,000.00. I don't even know the right words to use to say that number.

Interestingly, the billionaire's point for this exercise was to show the ultimate futility of buy and hold strategies. Long term they always fail. Otherwise, we should have some ancient Roman families around worth more than the number above.

One could easily argue the priceless nature of the pyramids as the ultimate buy and hold strategy.

I would argue investment into knowledge as buy and hold too, as a society. Further, it is accretive. All advancement stands on shoulders of prior advancements that someone paid for and we hold onto.

Trust me, I catch a limit of fish every single time I go, and almost every time I don't go.

Jabin said:

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SuhrThang said:

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Compound interest is the greatest force on the planet.

Albert Einstein.

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I had a multi-billionaire client once who liked to pose the hypothetical question whether you should choose an amount of gold equal in weight to the weight of the world, or $1 that had been invested in the year 0 at 5% interest compounded annually.

It's not even close. As of the year 2000, the $1 invested would have grown to $2,277,240,194,870,240,000,000,000,000,000,000,000,000,000.00. I don't even know the right words to use to say that number.

Interestingly, the billionaire's point for this exercise was to show the ultimate futility of buy and hold strategies. Long term they always fail. Otherwise, we should have some ancient Roman families around worth more than the number above.

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It won't matter what your strategy is if you get run over by Vandals, Barbarians, and Turks.

Jabin said:

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SuhrThang said:

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Compound interest is the greatest force on the planet.

Albert Einstein.

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I had a multi-billionaire client once who liked to pose the hypothetical question whether you should choose an amount of gold equal in weight to the weight of the world, or $1 that had been invested in the year 0 at 5% interest compounded annually.

It's not even close. As of the year 2000, the $1 invested would have grown to $2,277,240,194,870,240,000,000,000,000,000,000,000,000,000.00. I don't even know the right words to use to say that number.

Interestingly, the billionaire's point for this exercise was to show the ultimate futility of buy and hold strategies. Long term they always fail. Otherwise, we should have some ancient Roman families around worth more than the number above.

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That's really stupid.

How about he start with a number more like $1e-30 dollars and show it would be worth 1 billion today.

There's a point where money get harder to compound and billions is harder to move and to compound than 100k, but buy and hold is still a great strategy. Obtain it has a limit as the compounding can't exceed the total market, but there's only a few thousand billionaires. For everyone else it's great. The best and only ways to reach billionaire status is marry, inherit, or start a successful business venture that has insane growth.

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That's really stupid.

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Ha ha, I'll tell him you said that.

By the way, he has been described by many as having the greatest financial mind in the US today.

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By the way, he has been described by many as having the greatest financial mind in the US today.

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Dave Ramsey is your client? I'm super impressed.


Seriously though... All compounding of capital is interrupted eventually. The trick is (as Charlie and Warren have mentioned numerous times) is to:

1. Allow capital to compound for the longest time possible and without interruption at a sustainable rate that neither interrupts compounding nor compromises the length of time that capital can compound

2. Never unnecessarily interrupt said compounding of capital by means of individual stupidity