Charlie Munger at USC Business School in 1994:

“When Warren lectures at business schools, he says, “I could improve your ultimate financial welfare by giving you a ticket with only 20 slots in it so that you had 20 punches—representing all the investments that you got to make in a lifetime. And once you’d punched through the card, you couldn’t make any more investments at all.”

He says, “Under those rules, you’d really think carefully about what you did and you’d be forced to load up on what you’d really thought about. So you’d do so much better.”

Again, this is a concept that seems perfectly obvious to me. And to Warren, it seems perfectly obvious. But this is one of the very few business classes in the U.S. where anybody will be saying so. It just isn’t the conventional wisdom.

To me, it’s obvious that the winner has to bet very selectively. It’s been obvious to me since very early in life. I don’t know why it’s not obvious to very many other people.”


I am writing this investment newsletter mainly to help organize my thinking/research.

My investment style is not unique, in that I am a value investor, investing in a concentrated manner (typically <15 positions). But, my investing style might differ from other value investors in that I do not believe I have the ability to jump from industry-to-industry with ease. I’m a bit more extreme about the “circle of competence” concept.

Due to the concentrated nature of my investments, there might not be many posts. I also might not post on all my ideas. However, I’m sure I’ll find a few items to write about each year. Quality over quantity is the goal.

As background, I run a small, private investment firm focused on investing my capital, along with a handful of others. Previously I worked as an investment professional in the corporate world.

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