What Buffett Would Do

Buffett On Investing:

Don’t be too fixated on daily moves in the stock market (from Berkshire letter published in 2014)
Don’t get excited about your investment gains when the market is climbing (1996)
Don’t be distracted by macroeconomic forecasts (2004)
Don’t limit yourself to just one industry (2008)
Don’t get taken by formulas (2009)
Don’t be short on cash when you need it most (2010)
Don’t wager against the U.S. and its economic potential (2015)

Buffett On Management:

Don’t beat yourself up over wrong decisions; take responsibility for them (2001)
Don’t have mandatory retirement ages (1992)
“Don’t ask the barber whether you need a haircut” because the answer will be what’s best for the man with the scissors (1983)
Don’t dawdle (2006)
Don’t interfere with great managers (1994)
Don’t succumb to the attitudes that undermine businesses (2015)
Don’t be greedy about compensation, if you’re my successor (2015)

Source: Here’s What Buffett Wouldn’t Do, and Maybe You Shouldn’t Either


Cliché – Bull Markets vs. Bear Markets

In a bull market you’re not as smart as you think you are and in a bear market you’re not as dumb as you think you are.

Source: Bull Markets vs. Bear Markets

Bonds yielding less than 0% now make up $6 trillion

The market for negative-yielding bonds is now worth around $6 trillion, and has doubled in just over a month, showing just how worried how investors across the globe are about the state of the world’s economy.

Source: Bonds yielding less than 0% now make up $6 trillion of the global debt markets – Business Insider

Even God Would Get Fired as an Active Investor – Alpha Architect

Our bottom line result is that perfect foresight has great returns, but gut-wrenching drawdowns. In other words, an active manager who was clairvoyant, and knew ahead of time exactly which stocks were going to be long-term winners and long-term losers, would likely get fired many times over if they were managing other people’s money.

Question: if God is omnipotent, could he create a hedge fund that was so good that he could never get fired? No. It turns out even God would most likely get fired as an active investor.

Source: Even God Would Get Fired as an Active Investor – Alpha Architect