Commonplace

Philosophy

Don’t do things that you know are morally wrong. Not because someone is watching, but because you are. Self-esteem is just the reputation that you have with yourself. You’ll always know. ~ Naval Ravikant

Investing

He who turns over the most rocks wins. ~ Peter Lynch

Deliberate practice, pattern recognition with quality reps.

My largest positions aren’t the ones I think I’m going to make the most money from. My largest positions are the ones where I don’t think I’m going to lose money. ~Joel Greenblatt

Cravings (greed) make it harder to think straight.

The only way to hold onto a big position after it makes a big move is to know the underlying company better than anyone else. ~Ian Cassel

I’ve experienced this first hand several times (e.g. $GROW during Oct, 2020).

My worst enemies are impatience and boredom. ~?

Successful investing character traits go against what we’re wired to do.

Successful investors can differentiate business performance from stock performance and can take advantage of those investors who can’t. ~?

Signal vs noise.

If you can’t sleep at night because of your stock market position, then you have gone too far. If this is the case, then sell your position down to the sleeping level. ~Jesse Livermore

Trust your intuition.

To be a disciplined investor you have to be willing to stand by and watch other people make money on things that you passed on. ~Howard Marks (via Ian Cassel)

Diversification is protection against ignorance ~Warren Buffett

Laziness takes you out of this game, but don’t fool yourself and don’t risk ruin. Also diversification is imprecise (10-12?, 100s, 14001).

The goal of investment is to find situations where it is safe not to diversify. - Munger

Margin of safety.

During a gold rush, sell shovels

If there is a chip shortage (2021), don’t buy companies that depend on chips, buy companies that produce them.

Don’t waste time having an opinion on every company. It’s a distraction. You only have to be right on what you own. - Ian Cassel

But at least put the time to understand why you have no opinion (“He who turns over the most rocks wins."). Pabrai does this with a checklist optimized to say “no” asap.


  1. https://homeweb.csulb.edu/~pammerma/fin382/screener/lynch.htm ↩︎