What I learnt from Roy Tolles

Roy Tolles was the Founder of a top US Law firm and one of the earliest partners of Charlie Munger.

What I learnt from him:

You can use the contrast effect to fatigue the middle man and get a better deal for yourself

From  the 2018 Berkshire Hathway AGM

Once Roy Tolles wanted to buy a house in San Marino and have lot of kids and so he sent his wife Martha out to make offers on several houses.

She offered 50% of list on every house.

She finally found one they both really liked and offered 80%, and the worn-down agent was so happy to get a bid like this that he said he would work very hard on the seller and didn’t want six more months of Roy bidding 50%.

 

What I Learnt from Larry Benedict

Larry Benedict is the Founder and CEO of Banyan Equity Management

What I learnt from him:

Don’t put all your money or even most of your money in one idea-even though you think that idea can be a multi-bagger and can make you insanely rich…because you could very well be wrong

From his interview in the Book The Hedge Fund Wizards :

“Since I started in the business, I have seen a number of traders who ended up committing suicide or being homeless.

The one trait they all shared was that they had a gambler’s mentality.

When they were losing, they were always looking for that one trade that would make it all back.

I learned early on that you can’t do that.

This is a business where you have to work. I grind out the returns.