Curiosity@Intelsense
Weekly dose of learning
1.
Buffett’s two rules of investing is actually bad advice
The thing that I thought I knew about investing back then, it was all wrong. What I thought I knew at the time was: Rule One: Don't lose money. And Rule Two: Never forget rule one. So I spent all that time just playing small, just trying to protect my downside, trying not to lose, really hard. So we bought businesses at a discount to their net asset value. And even when things went right, it didn't go that right. But there were three times, I wrote, literally, in an investment memo, that it is mathematically impossible to lose money on this investment, and we lost money all three times.
Imagine you start dating, and your only purpose is not to break your heart. And you're going to have one foot in and one foot out. And even if you have a good date, it's not going to be that great, because you're not really in it. But the more likely outcome is you're going to guarantee the very outcome you're trying to avoid, which is you're going to get your heart broken.
I started realizing that that was 180 degrees from what I should be doing in investing. If you're going to invest there's going to be downside. You're never going to get that risk down to zero. You can reduce it maybe a little bit. But the more valuable part, and the magic is, what can you do on the upside? What can happen when it goes right? In class, I write: Assume success. What happens if things go well?
2.
Never miss a day
Lacrosse legend Paul Rabil had a coach tell him that the key to making it in lacrosse was simple: take one hundred shots a day. The caveat? Holidays, bad weather, sickness–none of that can get in the way. “You can’t miss a day,” the coach said. And that’s what Paul did. Every single day from high school through his professional career–for twenty years. Everywhere he went, he found a wall to throw against, a goal to shoot on. One hundred shots a day, no exception.
Whatever sport, business, or field you’re in: figure out what your reps are. Something you can commit to, every single day, that’s completely in your control. The key is: never miss a day.
Buzz Williams, the basketball coach for Texas A&M, brought up a similar point. He talked about the idea of being an everyday guy: “Whatever it is that you’re trying to do, are you tough enough to do that every day?” he asks. “If you’re basing it on talent, well at some point in time it might prevail, but not always. And so if you remove talent, then it comes down to consistency, discipline, and how you are spending your time.”
Pic of the Week
Thought of the Week
"In many cases, you'll find the only thing preventing you from learning is your ego.
No one enjoys feeling foolish, but attempting something new requires that you climb down from your perch and struggle as a beginner. You must ask questions that reveal your ignorance or attempt skills that make you look uncoordinated.
Learning demands the willingness to live in a brief state of discomfort. You must believe that looking like a fool for an hour will not ruin your reputation for life."
- James Clear
Video of the Week
DISCLAIMER:
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
SEBI Registered Research Analyst - Cupressus Enterprises Pvt Ltd - INH000013828.
Registration granted by SEBI and certification from NISM does not guarantee the intermediary's performance or provide any assurance of returns to investors.