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Charlie Munger:
"I think gold is a great thing to sew into your garments if you're a Jewish family in Vienna in 1939, but I think civilized people don't buy gold. They invest in productive businesses."
"All intelligent investing is value investing - acquiring more than you are paying for. You must value the business in order to value the stock."
"It’s not given to human beings to have such talent that they can just know everything about everything all the time. But it is given to human beings who work hard at it - who look and sift the world for a mispriced bet - that they can occasionally find one. And the wise ones bet heavily when the world offers them that opportunity. They bet big when they have the odds. And the rest of the time they don't. It's just that simple."
"If all you succeed in doing in life is getting rich by buying little pieces of paper, it's a failed life. Life is more than being shrewd in wealth accumulation."
"The best thing a human being can do is to help another human being know more"
Investing Articles:
Superinvestors of Graham-and-Doddsville
by Warren Buffet
Behavioral Finance
by Christopher H. Browne of Tweedy, Browne LLC
Building a Trillion Dollar Business
by Charlie Munger
Art of Stock Picking
by Charlie Munger
Parody of the Great Recession
by Charlie Munger
The Wit and Wisdom of Peter Lynch
by Kaushal B. Majmudar, CFA
Diversification only appears to be more difficult than in the past if a person limits their portfolio options to long-only positions in the traditional “asset classes.” In fact true portfolio diversification is impossible to achieve without understanding and diversifying across the specific “return drivers” that underlie specific “trading strategies.”
I discuss this throughout my book “Jackass Investing: Don’t do it. Profit from it.” (#1 Amazon Kindle best-seller in the mutual fund category).
As you might have guessed from both the book’s title and my opening paragraph, my approach to diversification is quite different from conventional investment wisdom. One concept I think you’ll find most interesting is in that I replace asset classes with “return drivers” and “trading strategies” (as I point out in the book, asset classes are simply long-only trading strategies that do not attempt to disaggregate their many separate return drivers). Once viewed in this fashion it is easy to create a truly diversified portfolio, rather than one constrained by the shackles of asset classes.
I’m pleased to provide you with a complimentary link to the final chapter of the book, where I present the benefits (greater returns & less risk) of a truly diversified portfolio: http://bit.ly/vxDo6v.
I do appreciate dissenting opinions, and when I get a chance I will check out your website, however, in some portfolios individuals may be limited to “traditional asset classes.” For instance, in most 401K plans provided by employers many are limited to only a handful of mutual funds which are separated into classes. In these instances, employees may not have any other options other than the above-listed asset classes.
I agree. That is, unfortunately, a big problem with virtually all 401(k) plans. They don’t allow people to truly diversify.