How To Be A Great Investor - II

| January 25, 2019
Share |

Continuing on my highlights from Damn Right: Behind The Scenes with Berkshire Hathaway Billionaire Charlie Munger:

Develop a Mosaic by Gathering Information:

“I think both Warren and I learn more from the great business magazines than we do anywhere else,” said Charlie. “It’s such an easy, shorthand way of getting a vast variety of business experience just to riffle through issue after issue covering a great variety of businesses. And if you get into the mental habit of relating what you’re reading to the basic structure of the underlying ideas being demonstrated, you gradually accumulate some wisdom about investing. I don’t think you can get to be a really good investor over a broad range without doing a massive amount of reading. I don’t think any one book will do it for you.”

Munger explained that a person’s reading should not be random: “…you have to have some idea of why you’re looking for the information. Don’t read annual reports the way Francis Bacon said you do science—which, by the way, is not the way you do science—where you just collect endless data and then only later do you try to make sense of it. You have to start with some ideas about reality. And then you have to look to see whether what you’re seeing fits in with proven basic concepts.

Frequently, you’ll look at a business having fabulous results. And the question is, How long can this continue?’ Well, there’s only one way I know to answer that. And that’s to think about why the results are occurring now—and then to figure out the forces that could cause those results to stop occurring.”

This is the method of thinking that helps Munger and Buffett spot a company that has a franchise on a certain product, a so-called “moat” around its business.


Stay Tuned, Disciplined & Patient! {TJM}

The Investor & Character Equation (ICE) | S + R = O


IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Meyer Capital Group-“Meyer”), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Meyer. Please remember that if you are a Meyer client, it remains your responsibility to advise Meyer, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Meyer is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Meyer’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.meyercg.com. Please Note: Meyer does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Meyer’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

Share |