Alpha Ideas

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%.