The best investment advice often involves the combination of the following steps:
(1) acquire a specialized skill so that your labor generates meaningful money;
(2) save some portion of your labor as surplus;
(3) take that surplus and invest it into assets that grow in value over time;
(4) maintain cash so you will never be forced to make decisions on disadvantageous terms during times when you are vulnerable;
(5) do not react stupidly to the inevitable moments when assets you own fall in value.
12 Likes
Reciprocity is one of the strongest mental models that can change your life. Mark Twain once said that the difference between a man and a dog is that a dog won’t bite you once you fed it. This is one of the few times where Twain was wrong. If you do something good for others, without asking in return, you have planted one hell of a seed for repayment from that person somewhere down the road.
Doing nice things for other people is the relationship equivalent of buying $1000 worth of Exxon, $1000 worth of Coca-Cola, $1000 worth of Pepsi, $1000 worth of Johnson & Johnson, and $1000 worth of Procter & Gamble. Over time, you will be shocked at how things grow.
6 Likes
Hablando de la vecina del quinto…
Physical Attractiveness— If half the country, and then some, want you to take your pants off, you can get a lot of things that you want. If you think back to your teenaged self, you can probably think of a long list of irrational things that you were willing to do that were the direct result of a physical attraction to someone else. Unlike other sources of power, physical attractiveness is not a cumulative asset (after a certain point, maintaining the status quo is the best you can ask for), but while you have it, it can be the most potent weapon in this arsenal. People will be quite forgiving when you forget exactly what the Pythagorean Theorem is if you are able to rock a tight pair of jeans.
5 Likes
Parece que hace poco le tocó reunión de antiguos alumnos😂
3 Likes
¿La vecina del quinto lleva botas UGG? 
The three leading causes of bankruptcy are:
(1) Divorce.
(2) Job loss.
(3) Health problems.
If you want to be financially miserable, those are three great ways to get you there.
The defeatist personality would think something like this—I can’t control what kind of spouse my significant other becomes, my employer could fire me at any moment, and I could wake up with cancer tomorrow. Each of those statements are true, but they ignore an important part of the thought process—every decision that we make puts us on a path with a certain series of probabilistic outcomes, and it is our job to act in a way that tilts those probabilities into a direction that we find favorable.
If I find myself falling for a girl that spends her days browsing Pinterest for $200 Ugg boots and $5,000 wedding dresses, well, I might want to back off before things get serious so I don’t become one of those yuppie snobs that live paycheck to paycheck.
Yeah, I can’t control what an employer does, but if I become damn good at mastering the law, there will likely be a place in any economy for the services I can provide.
Yeah, I can’t control what my future health situation will look like, but I can make a deliberate effort to avoid the one vice that seems to destroy many otherwise promising young men: alcohol.
That’s the kind of stuff I can control. When you look at your own life, you can probably make a good list of what it would take to put you on a path towards divorce, job loss, and health problems, and once you identify that path, you have a whole lot of power that can reduce the probabilities of you experiencing any of those three things.
7 Likes
¿No eran Liquor, Ladies and Leverage?
Divorce = Ladies
Job Loss = Not “Leveraging” your skills in the workplace
Health problems: Liquor
We can make individual decisions that either increase or decrease the probabilities of realizing an outcome that we desire. I’m really thankful that Mr. Munger taught me that it is dumb to give up on the things we cannot fully control, because we can almost surely influence them more than we might initially think.
4 Likes
Esto tweet me gusta más, porque no se basa en el sesgo de supervivencia de una “super empresa” si no en una regla sencilla y que muchos de nosotros sigue en mayor o menor medida como es un número alto de años de aumento de dividendo.
Por poner en contexto, el S&P 500 desde 1990 hasta ahora ha tenido una rentabilidad de algo más de un 8%.
3 Likes
Cuando se podia batir al mercado siendo DGI 
Parezco nuevo, mire el índice y olvidé que no incluía dividendos.
La diferencia ya es menor pero aún así muy favorable a las acciones DGI
1 Like
Yo el problema que veo es el de siempre:
Si las acciones DGI lo han hecho bien, la gente empieza a comprar acciones DGI, se encarecen, y dejan de superar al mercado.
Si las acciones Quality lo han hecho bien, la gente empieza a comprar acciones Quality, se encarecen, y dejan de superar al mercado.
Si las acciones Growth lo han hecho bien, la gente empieza a comprar acciones Growth, se encarecen, y dejan de superar al mercado.
…
Y así todo.
¿Hay algún criterio de selección de acciones que sea inmune al mercado? Yo creo que no. Por eso los factores también tienen sus rachas.
5 Likes
Yo creo que era algo tipo, compra barato y vende caro😉