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WhatILearntFrom

What I learnt from Peter Bernstein

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WhatILearntFrom

What I learnt from Bhaskar Bhat

Bhaskar Bhat, the former MD of Titan is one of the greatest wealth creators in India

What I learnt from him is what he wrote in his farewell party

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WhatILearntFrom

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%.

 

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WhatILearntFrom

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.

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WhatILearntFrom

What I learnt from Ray Dalio

Ray Dalio is the founder of BridgeWater, one of the largest hedge funds in the world

What I learnt from him:  Discuss your investment ideas with smart folks and ask them to find flaws in it. 

From his interview in the Book The Hedge Fund Wizards :

Most school education is a matter of following instructions-remember this; give it back; did you get the right answer?

It teaches you that mistakes are bad instead of teaching you the importance of learning from mistakes.

It doesn’t address how to deal with what you don’t know.

Anyone who has been involved in the markets knows that you can never be absolutely confident.

There is never a trade that you know you are right on. If you approach trading that way, then you will always be looking at where you might be wrong.

You don’t have a false confidence. You value what you don’t know.

In order for me to form an opinion about anything involves a higher threshold than if I were involved in some profession other than trading.

I’m so worried that I may be wrong that I work really hard at putting my ideas out in front of other people for them to shoot down and tell me where I may be wrong.

That process helps me be right.

You have to be both assertive and open-minded at the same time. The markets teach you that you have to be an independent thinker. And any time you are an independent thinker, there is a reasonable chance you are going to be wrong.