Chuck Akre Value Investing Conference Talk: ‘An Investor’s Odyssey: The Search for Outstanding Investments’

An Investor’s Odyssey: The Search for Outstanding Investments

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What I am Reading Today

A Hidden Cost Called Rented Suit Liability (Safal Niveshak)

Warren Buffett explained the idea of long-tail hidden costs in his 1985 annual letter 

A man was traveling abroad when he received a call from his sister informing him that their father had died unexpectedly. It was physically impossible for the brother to get back home for the funeral, but he told his sister to take care of the funeral arrangements and to send the bill to him. After returning home he received a bill for several thousand dollars, which he promptly paid. The following month another bill came along for $ 15, and he paid that too. Another month followed, with a similar bill. When, in the next month, a third bill for $15 was presented, he called his sister to ask what was going on. “Oh”, she said. “I forgot to tell you. We buried Dad in a rented suit.

 

People vs. Companies (Morgan Housel)

Every business has three main stakeholders: Investors, employees, and customers.

Investors are easy to please, Mackey said. They just want to stock to go up.

Customers want good products at good prices with good service. Hard but simple.

Employees are another story. Their needs are endlessly complicated.

“If you don’t pay them enough they’re unhappy. If you pay them more, they’re still unhappy if they lack opportunities to advance. If you pay them a lot and give them opportunities, they still may hate their boss,” he said. Or their coworkers. Or their commute. Or they get tired of doing the same thing. Glimpses of satisfaction followed by a gravitational pull towards wanting something else.“

 

Weekend Brainfeed: 23-June-2018

Every week I go through a ton of reading, these are the interesting content I found useful for this week.

I hope you will enjoy as much as I do.

If you enjoy it please share and comment your feedback.

 

Quote, I’m pondering —

“The big question about how people behave is whether they’ve got an Inner Scorecard or an Outer Scorecard. It helps if you can be satisfied with an Inner Scorecard.”
— Warren Buffett

 

How Much is Enough?

Smarter, Not Harder: How to Succeed at Work

Courage to Be Yourself: E.E. Cummings on Art, Life, and Being Unafraid to Feel

 

How 10 Billionaires Surmounted Failure to Build Massive Empires

“How do you guys have time to manage money, between tweeting and writing and tv and radio?”

 

Enjoy and Have a Great Week End.

 

How to Succeed in life ? Great peace of advice from legendary thinker -Charlie Munger

I will tell you in a single line.

Be ready to take advantage of the opportunities to succeed.

Here is a story from Charlie Munger on how to Succeed.

The combination of patience and opportunism is important.

Charlie had a great-grandfather who had a great influence on his life. This man was one of Charlie’s only ancestors who became rich.

He toldCharlie that you have to be ready to take advantage of opportunities to succeed. This is what they do at BRK. They are always ready.

You do not want to be timid when great opportunities arise.

It is kind of like how most marriages don’t work and you may have only one chance to marry the right person.

How to Get Rich (without getting lucky) – Naval Ravikant

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Naval is one of the greatest minds out there in public forum, he is a great reader, thinker. Here is a thread of tweet he shared recently which made a lot of sense on few important aspects of life like wealth, knowledge.

Here is the collection of the thread please read it and enjoy!!

  1. Seek wealth, not money or status. Wealth is having assets that earn while you sleep. Money is how we transfer time and wealth. Status is your place in the social hierarchy.
  2. Understand that ethical wealth creation is possible. If you secretly despise wealth, it will elude you.
  3. You’re not going to get rich renting out your time. You must own equity – a piece of a business – to gain your financial freedom.
  4. You will get rich by giving society what it wants but does not yet know how to get. At scale.
  5. The Internet has massively broadened the possible space of careers. Most people haven’t figured this out yet.
  6. Play iterated games. All the returns in life, whether in wealth, relationships, or knowledge, come from compound interest.
  7. Pick business partners with high intelligence, energy, and, above all, integrity.
  8. Learn to sell. Learn to build. If you can do both, you will be unstoppable.
  9. Arm yourself with specific knowledge, accountability, and leverage.
  10. Specific knowledge is found by pursuing your genuine curiosity and passion rather than whatever is hot right now.
  11. Building specific knowledge will feel like play to you but will look like work to others.
  12. When specific knowledge is taught, it’s through apprenticeships, not schools.
  13. Specific knowledge is often highly technical or creative. It cannot be outsourced or automated.
  14. Embrace accountability, and take business risks under your own name. Society will reward you with responsibility, equity, and leverage.
  15. The most accountable people have singular, public, and risky brands: Oprah, Trump, Kanye, Elon.
  16. “Give me a lever long enough, and a place to stand, and I will move the earth.”
    – Archimedes
  17. Fortunes require leverage. Business leverage comes from capital, people, and products with no marginal cost of replication (code and media).
  18. Capital means money. To raise money, apply your specific knowledge, with accountability, and show resulting good judgment.
  19. Labor means people working for you. It’s the oldest and most fought-over form of leverage. Labor leverage will impress your parents, but don’t waste your life chasing it.
  20. Code and media are permissionless leverage. They’re the leverage behind the newly rich. You can create software and media that works for you while you sleep.
  21. If you can’t code, write books and blogs, record videos and podcasts.
  22. Leverage is a force multiplier for your judgment.
  23. There is no skill called “business.” Avoid business magazines and business classes.
  24. Reading is faster than listening. Doing is faster than watching.
  25. You should be too busy to “do coffee,” while still keeping an uncluttered calendar.
  26. Set and enforce an aspirational personal hourly rate. If fixing a problem will save less than your hourly rate, ignore it. If outsourcing a task will cost less than your hourly rate, outsource it.
  27. Work as hard as you can. Even though who you work with and what you work on are more important than how hard you work.
  28. Become the best in the world at what you do. Keep redefining what you do until this is true.
  29. There are no get rich quick schemes. That’s just someone else getting rich off you.
  30. Apply specific knowledge, with leverage, and eventually, you will get what you deserve.
  31. When you’re finally wealthy, you’ll realize that it wasn’t what you were seeking in the first place. But that’s for another day.

Source:

https://mobile.twitter.com/naval/status/1002103360646823936

121 Charlie Munger Quotes from the legendary investor and thinker

A Collection of Quotes from legendary investor and thinker. Take time and think deeply about each quote, we can find answers to most of our questions about life, investing, happiness.

Enjoy!!!

https://www.exploringmarkets.com/2016/08/121-charlie-munger-quotes-about.html

 

Note:

If You find useful please share it with the people you love and care.

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

Why I always don’t have time for me??

All of us have a common complaint when we want to add a good habit like exercise or reading or meditation in our daily routine.

But we have failed to get it done and we have a simple answer for it, you  guessed it correctly “I don’t have Time “

Have you ever thought what differentiates most people with the 1% who could get it done?

We all have 24 hours a day, no one can have an advantage over you on time.

It’s how efficient you are with your time that matters, the secret the elite 1% have is they Cut the unproductive habits or outsource unimportant work So they could concentrate more time on what’s important for them.

So find out what works can be outsourced so that you can free up your time and concentrate on the important things of your life.

Its as simple as that. “You don’t have to do extraordinary things to get extraordinary results, you have to do simple things consistently over a long period of time”

Some of outsourcing service providers

YMMI will help you do all kind of basic services from delivering home utilities to bill payments..

https://www.yourmaninindia.com

Brickwork will help enterprises to outsource their jobs.

https://www.brickworkindia.com

So let’s focus on how to efficiently utilize our time.

 

 

Coach Jonny Wooden Speaks About Life, Success

Teacher, Coach, Mentor plays a very important role in every once life. Every parent wants to be an effective  Teacher, Coach, Mentor for their children.

Come let’s learn how to be an effective coach from the greatest basketball coach ever lived.

A quick intro about Coach Wooden, he is One of the most respected and admired coaches in the history of sports, Wooden was beloved by his former players, among them Lew Alcindor (later Kareem Abdul-Jabbar) and Bill Walton.

This man is a molder of character.

He won ten NCAA national championships in a 12-year period as head coach at UCLA, including a record seven in a row. No other team has won more than three in a row in Division 1 college basketball.

I am fascinated to learn and share with you about the wisdom of Coach Wooden.

Coach Wooden lived his Life by the below 7 principles that his father gave him when he was young.

His father told him If you live your life by below principles you will never be broke.

7 Creed’s for life

1. Be True to yourself

2. Make Master Piece of yourself every day

3. Help Others

4. Think deeply from Good Books

5. Shelter yourself for a rainy day

6. Make Friendship of fine art

7. Pray for Guidance and give thanks for blessings every day

 

Below is the some the most important lessons that we can learn from the life of Coach Wooden

You should never try to be better than someone else, but you should never seize to try the very best you can be.

You can’t control how others think about you, you can control your behavior and who you are.

If you try to control things that you can’t control, you will lose control over things you have control.

You can’t control you win or lose, there is only one way you know you will win or lose by measuring yourself, did you given every ounce of yourself? that you can control.

If you give everything you have on the court most of the time you will win.

 

How to handle success or Failure?

Your Success or failure should not be determined by your attitude, you have to maintain the same attitude all the times, No excessive jubilation or excessive worry.

You should not be ashamed of failure; you should be ashamed when you failed to prepare properly when you had the opportunity.

How to prepare for a game?

You don’t have to scout others, you have to condition & prepare yourself for all kinds of opponents.

Repetition is the mother of all skills “Practice makes Permanent”. That’s how habits are formed.

Practice moderation in all things, eating, rest, habits.

Be precise & schedule your work

On Self Improvement

The Japanese word kaizen simply means “change for better”, with no inherent meaning of either “continuous” or “philosophy” in Japanese dictionaries or in everyday use. The word refers to any improvement, one-time or continuous, large or small, in the same sense as the English word “improvement”. … process kaizen.

You should never stand still, you either move up or another way, we cont expect to move up too quickly but we can surely slide down too quickly. Progress comes steadily if you prepare and improve continuously.

Remember anything worthwhile takes a very long time.

What is Failure or Adversity teaches you?

Adversity is what makes us better, you should not be afraid of adversity, it makes you mentally strong.

“it’s better to trust others and be disappointed sometimes and be distrust and be miserable all times” -Abraham Lincoln

How to treat everyone equal when Coaching?

The best way to treat everybody the same is, treat them what they deserve.

Wooden coin his definition of success:

Success is peace of mind, which is a direct result of self-satisfaction in knowing you made the effort to do your best to become the best that you are capable of becoming.”

On Failure:

Failure is knowing you don’t do things which you should have done. The individual is the only one who knows truly whether or not they are truly successful or not, Reputation is how others see you.

Who is a Coach?

A coach should be a teacher, helping his students make their most their individual abilities.

How did you know you did a good job?

I won’t know until 20 years, its how my students behave after they left my supervision.

How to handle disappointment?

You should know why you win or why failed.

In life, sometimes you will get unjustified criticism which you won’t like it & sometimes you will receive criticism which you deserve and you won’t like that even and sometimes in life you will get unjustified praise and credit you deserve it or not, you will like it.

Your absolute strength as an individual is how you are able to cope with both criticism and prise. Don’t let the good things go to your head and don’t let the bad things defeat you, there is always another day to improve.

Key Qualities from players:

“Be quick, but don’t hurry”

Quickness under control, you need to have balance. Balance both physical and emotional.

Never Criticize any player

Profanity

Complement the one who passed

Never miss practice

Team Work / Unselfish Attitude

 

Wooden Pyramid of Success

 

Pyramid-of-Success

Wooden’s Relationship advice

  1. Listen, just listen
  2. Communication
  3. Don’t keep things hidden

Most important lessons on life

Being considerate of others,

3 things that mankind crave most are Freedom, peace, and love

Finally 

Real happiness/success comes from things that can’t be taken away from you and Material things can’t give you the lasting happiness, you will never lose love.

That’s it guys, I love this blog especially because it has such a profound impact on me and how I see life after I have learned about the wisdom of coach John Wooden.

Thank you and let us catch up on my next blog.

What Works in Investing?

“Own Great Businesses and Do Nothing”

Most of history is made by those who mastered the art of doing nothing when nothing needed to be done, their doing nothing can be more important than their inclination of doing something.

My basic idea is 99% of Investing is doing nothing the other 1% is the Visible part so it’s all we talk about.

Doing something contrarian to overcome mediocrity, requires you to take a bold action. Capitalism job is to allocate capital to successful business, which seeds its own decline if you tend to make a lot of decisions.

Surviving the decline & let compounding to work requires enough buffer, Doing Nothing will minimize the number of rash decision and builds up capital, this is the difference between getting rich and staying rich.

Good Strategies rarely requires action, swinging for the fences and being conservative are not mutually exclusive, and the most enduring businesses and investors have elements of both, usually at the same time, often feeding off each other.

I have never seen Warren Doing DCF (Discounted Cash Flow Analysis on a potential investment), we expect investment opportunities to present themselves and shout at us. -Charlie Munger

Doing Nothing will help you to grab these low-lying fruits.

Charlie Munger deal making philosophy is

“Look at lots of deals and don’t do almost all of them.” 
Combine these two quotes:

“In my personal portfolio I’ve sat for years at a time with 
$10 million to $12 million in treasuries. Just waiting, waiting. 
A lot of people can’t stand to wait. It takes character to sit there 
with all that cash and do nothing.”

“The wise ones bet heavily when the world offers them opportunity. 
They bet big when they have the odds. And the rest of the time, 
they don’t.”

Source:
http://www.collaborativefund.com/blog/making-history-by-doing-nothing/?curator=alphaideas&utm_source=alphaideas