You’re sitting inside the cockpit of a converted ICBM missile about to be launched into space. The last 7 times NASA test launched this rocket it was a success, but the first 20 test launches had a 45% failure rate…. Read More
Are you a better investor than a pigeon? We’re going to answer this question by examining a light guessing game and from there we’ll derive two main lessons for investing in the stock market.The game requires you and a pigeon… Read More
The average holding period — how long an individual investor owns a stock — has been in decline for decades. According to Reuters, the average holding period reached its lowest point this past summer. There are different ways of slicing… Read More
It is hard to stay invested in a diversified portfolio when the S&P 500 is hitting new highs and your portfolio is not matching its returns. But you don’t have to keep up with the S&P 500. In this video,… Read More
In Thinking, Fast and Slow we learn that we have two systems of thinking. System 1, a quick thinking system built on heuristics and patterns. System 2, which is our deeper thinking rational system. Because system 1 has to be… Read More
Wolves fail more often on their hunts than they succeed. As Nick Jans states in his book A Wolf Called Romeo, Survival hinges on a brutal imperative: more energy must be gained than lost, across endless hard miles. To fail… Read More
“Invert, always invert” It is a phrase coined by the mathematician Carl Jacobi and made famous by Charlie Munger. When you want to solve a difficult problem take the inverse. It is the first thing that came to mind when… Read More
It’s a topic we discussed in the last dividend letter, finding high-quality companies is the relatively easy part about investing. It’s mostly math. Holding onto high-quality companies for the 1,000%+ returns is the extremely hard part. You have to constantly… Read More
Bonds are essentially loans. You give a company or some other entity money, they pay you interest, and eventually give you your original investment