"Who buys individual stocks? It has become an old-timey hobby for the modestly wealthy and eccentric, like model railroading." Matt Levine
This is a really thoughtful piece - the type of thing that's worth reading a few times.
Back from your break with a bang!
I think your evolution on your perspective of Buffett is very well stated. Buffett curates the image of a helpful, folksy, "investing is 1+1=2" grandpa, but the full truth about investing and Buffett as documented in a book like Snowball is far more complicated. Buffett's single minded focus and fierce competitiveness is less widely known and masked.
I am a Buffett fan, and Your description of Buffett as a "Human Alien👽" is 100% spot on!
Excellent info and thanks for the sharing useful insights
Be like Buffett means find your own way to tap dance to work and find your own "Joy of Investing".
Buffett was happy with 10 thousnd dollars, happy with 100k just as he is now with 100 billion. I started from the get-go memorizing chapter 8 and 20 of the "Intelligent Investor". The rest was Life.
Today I learned something! Great way to start a new day! Thanks, in particular, for providing the link to first ever video format tv interview by Buffett in 1962.
The point about enjoying what you're analyzing is key, in my view. We have to consider all the factors involved, not just "what's the best stock/business right now". Especially if you're going to be doing this for decades!
Interesting and inspiring post. I would also add to the desire of learning the intense desire to succeed.
This is a good piece, nice job! I would however argue that a lot of pain has been brought to individual investors by these legendary PMs as they have made it look easier than what really is. From the 90s, so many texts on Buffet&Co have tried to send a message that anyone can really beat the market and I think the financial community encouraged that view even though the data does not point in that direction . A big part of the financial industry lives on selling the idea to investors that they can beat the market and spot the next 100x baggers even though that is usually not the case. Even when you look at professional investors, alpha is mostly a mirage and certainly not persistent. Professional investors who spend their lives working on stocks, studying companies are literally killing themselves for a 0,5% alpha per annum which eludes them or simply evaporates after a few years of overperformance. So I would argue that, for 99.9% of the people (professionals included), picking stocks has to be considered an activity whose main objective is certainly not beating the market...
Regarding investing in what you’re interested in … I think it is more than a preference. It is essential because most people are not going to be motivated to research companies they are not interested in thoroughly enough to gain any unique or actionable insights. You have to be excited about it to engage fully in the process.
Excellent write up, thanks for sharing Frederik! Couldn't agree more about the community aspect of this art. Great writing style too, keep them coming!
I wish more individual investors would take Liberty's view. Investing is the best way to make sense of the world and the best motivator for getting to the truth of what's going on. Obviously making, and crucially, not losing money is the goal, but the SPY as a benchmark for most investors is probably a bad one.