From the Presidential Medal
of Freedom presentation

Warren E. Buffett : as a world-known investor and philanthropist, Warren E. Buffett business acumen is matched only by his dedication to improve the lives of others. He is the co/founder of the Giving Pledge, an
organization that encourages wealthy Americans to donate at least 50percent of their wealth to philanthropic causes.

Warren Buffett’s example of Generosity and Compassion has shown us the power of one individual’s determination in inspiring countless women and men to help make our world a brighter place.

Last posts

Waiting

Be like Buffett

WAITING (part 1)

In the investment world, you need patience. Unlike trading or speculating where the short-term benefit comes from being opportunistic, in ‘real’ investing, it is essential for the intelligent investor to wait patiently to reap long-term rewards. Waiting also possesses another virtue: the ability of gleaning more wisdom while waiting for the right pitch. Be prepared to wait for years if necessary. I have learned from Buffett and Munger to be patient. Watching the most successful investors put aside their impatience to just do ‘something’ with the market when there is in fact nothing to be done, was a real-opener for me. All value investors have this and other similar traits in common. Yet at the same time, they are never clones. Even though they start off from ‘the same house’ of their patriarch Benjamin Graham, they follow different paths and explore different streets in ‘the same town’ Buffett calls “Graham and Doddsville”. Over the decades, more than just one have successfully applied an ‘updated version’ of the same old principles to investing (which still work in the modern investment world). Having said that, even the more traditionalist like Walter Schloss and his son have done more than ok.

Whenever I find something very interesting in one of Buffett’s interviews, I watch it multiple times, again and again. It helps me think about how I can put in practice what he is saying or recommending; how I can utilize it in my everyday life. If you’re able to read through some of the quotes of great investors, you’ll find treasure expressed in just a few words. I’ve learnt as a business owner that if it takes a lot of words and negotiating to come to a deal, it’s probably the wrong deal. So as value investors, let’s not forget the key-concept that underpin our investment philosophy: we must remind ourselves each and every day to bid our time. You don’t make money when you buy stocks and you don’t make money when you sell stocks; you make money by waiting.

Humans have a tendency to be impatient and to suffer from boredom. While on the other hand, they also have a tendency to gamble. Investing is all about becoming a better human being in order to succeed. And it’s training in how to be a stoic. The pursuit of good virtues. You have to be able to find the part of yourself that controls your emotions and learn the best way to keep yourself in check. There are certain times that it is crucial you don’t get swept away by emotions; you have to bring to the table rationality, you have to be like Buffett. Let’s utilize the best attributes of being human: our reasoned choice, our rationality. Let’s put them both to work. We’ve conquered this world as a species because of our inquisitive minds. We can do wonderful things and avoid disasters by simply letting facts and reasoning defeat irrationality and weakness of spirit. It’s hard to do it but it can be done. How? With practice. And practice demands time and patience. It requires focus. The good thing about practice is that it requires strength more than having any special talent or a high IQ. It can be achieved by anyone. Don’t be afraid of repetition or practice or starting all over again. If it’s a fun and useful game, why not play it again? It is a huge advantage to have such an attitude (even though stoics are often criticized for it). Being repetitive is a bad thing? Not at all, it works fabulously not only in some aspects of life, but also in investing. Investing is not like cake in a diet: in investing too much of a good thing is a good thing!  (to be continued)

“Take the high road, its uncrowded”

Be like Buffett

I highly recommend reading Warren Buffett’s most recent letter regarding the donation on 23rd of June (4.1 billion). It’s on the Berkshire Hathaway website, and if it doesn’t resonate with your capitalist heart, it means that all your efforts to be a better person and a true capitalist are in vain. In my opinion, it doesn’t mean anything if you make a lot of money and don’t have any concept of appreciation; you’ll just be part of the crowded road of jerks that become jerkier when they get more money. I’m not a writer so I need as usual an appropriate stoic to help better explain what I mean:

“If only the hearts of the wealthy were opened to all! How great the fears high fortune stirs up within them.” (Seneca)

Doing the right thing is appreciating what you achieved. If you manage to get good results by just doing your job (for example, you made a good investment and successfully completed your task), why don’t you just silently and humbly move on to the next task? Move on to the next thing, without having to take credit, bragging or looking for a recognition for simply doing what you are supposed to do. In a nutshell, just do your job. Do it consistently, happily. Be thankful that things, big or small, are going in the direction you planned or wanted. Don’t think you need to become a different person. Take the next step; do the job at hand. And try to do it right again. Remember, many people are also trying to find success (following the same steps as you) but for many different reasons they are incapable of achieving good results. Think about others and make a reasoned choice about what you have, especially if you have more than you need, and think how to make good use of it.

When I encourage you to think like a true rich person or to be like Buffett, that’s what I have in mind. That’s the happiness and peace of mind I visualize in taking the high road: to pursue with honesty your own goals, whatever they might be. In the end, we all want to be happy, independent, free to apply reasoned choices to our lives. To put it in a few words, we want to be a better person than we were the day before, and if possible, leave the world a better place than we found it. As the stoics would say, we want to behave and think like a “philosopher”. Buffett is the most famous and well-known example of the good a rich investor/philosopher can do for a society by giving back what his talents produced, in terms of wealth. This ‘true wealth’ was accomplished over many decades, while living a happy life, doing what he likes the most: investing. Everyday. Without stopping and indulging in self-celebration or becoming complacent (the biggest danger around the corner for many successful people and businesses). “If only the hearts of the wealthy were opened to all!” If you can pile up extra-money that is of no use to you, you can easily give 99.9 percent away. Or you can be useful to others in many ways, not only with your money… even when your name is not Seneca or Warren Buffett.

P.S: Happy investing everyone. And when I say everyone I really mean everyone. Because remember : blikebuffett and Value Investing is more a “How” than a “How much” .

Wanna be a pro? Practice!

Education

“Thats why the philosophers warn us not to be satisfied with mere learning, but to add practice and then training”.(Epictetus, Discourses) 

In investing,the goal is very simple: “Investing is laying out money now to get more money back in the future-more money in real terms, after taking inflation into account”.

We already know many people forget that and start to say that investing is merely speculative and not an investment at all. Another idea(including mine) is that the investment world purposely uses a variety of investment products and instruments that make it even more complicated for a layman to grasp, just to try and take advantage of their savings, while charging them outrageous fees.

Out of all instruments I know (preferred stocks included), common stocks are the only thing that I consider pieces of a business. And, as a business man and business owner, I assess stocks and analyze a publicly traded company using that caveat. I have just one approach when I’m buying a business’s stocks: I act like I’m buying the entire business. Whenever I am taking a business into consideration, the first thing I check is if it is a business I understand or I have experience with. It must be within my area of expertise. Over time,I’ve created my own ‘filter system’ and I’ve started to filter out the characteristics of the business that I don’t like. If a business or a corporation makes it through those filters, I move on to my ‘evaluation’ phase. When I figure out the intrinsic value of an entire business, I ask myself if I’m also able to predict what will happen with this business in the future. Only then do I check the actual market value and the price of the outstanding shares.The concept of ‘Intrinsic Value’ and ‘Margin of Safety’, (combined with as much understanding of accounting as possible), complete my set of mental tools and analysis. However,I will say that it’s all a lifelong process that everybody has to figure out for themselves.

So, why after many decades of studying and learning from Graham, Buffett, and Value Investing, do most students forget to just keep it simple? They tend to use the concepts and tools that they’ve learned and studied (or developed themselves), and forget the basic lessons of Value Investing. For example, they often fail to focus on accounting and instead focus on irrevelant things. Or they underestimate how much they can learn from a Nebraskan woman with a cart that created from scratch the biggest furniture store in the country.

Learning from real life experiences is the way to go; the ‘hands on’ approach of ‘just doing it’. Simply studying a bunch of formulas and theories  doesn’t work….at all. You can’t learn how to drive a car or fly a plane by just studying the manual

I’ve noticed that many young “investors” or “professional money managers” learn and study one thing, but then put into practice something else, without being consistent or rational.  It would be much more advantageous to merely practice and apply one investment philosophy.

The first thing you have to check before going into the investment business is if you are emotionally capable of handling ‘real investing’.

Not only applying what seems to be right theoretically, but also being able to rationally apply real world methods consistently.

Time and again, I’ve seen many guys on blogs, podcasts, and videos, profess they’ve read “The Intelligent Investor” or “Security Analysis”. They claim to agree with Buffett’s approach to investing but their actions simply don’t add up; they do not demostrate his approach or philosophy. They aren’t even able to quote Buffet or Graham accurately so I can’t imagine what they do when investing money.
I don’t know any other way when evaluating a business except the one that makes sense from a value standpoint. I don’t study any other approach or method except the “Value Investment”. It hooked me from the get-go, and like a Catholic marriage, I’ve never ‘changed horses’ (like Abe Lincoln used to say, it may not be a perfect horse, but I know its flaws and it serves me pretty well) .
So I think I will never exchange my ‘spouse’. I was lucky enough to be a virgin before my ‘marriage’; I had no formal business school training. It probably helped me to wade through a lot of distractions and strange theories. Always remember: Every good investment is a value investment by definition. That’s why I persistently stuck with learning how to better read financial reports,10ks, and 10Qs and refined my skills.
To have a good mind for business and investing it is crucial to own and start a business or more than one at a young age. There’s no use in learning anything if you don’t actually use those principles in the real world. “For as time passes we forget what we learned and end up doing the opposite, and hold opinions the opposite of what we should” (Epictetus, Discourses 2.9.13-14) 

Feel free to reach out or to comment at :

marco@blikebuffett.com

 

 

All the rest is noise

Discipline

Marcus Aurelius wrote his “Meditations” as a reminder to himself to daily practice the virtues he sought in life. He wasn’t trying to be a teacher and he probably didn’t expect to be a writer. I think we should try in our personal and professional life to do just the same, Focus on our own goals, not on what others think or expect from us.  

How miserable life would be if one tried merely to impress others. A life many people spend buying things they don’t like to impress people that don’t like them, desperately trying to be recognized or remembered without investing any time getting clarity, peace of mind, or gaining wisdom.   

How difficult is to recognize all the extrinsic factors that can only harm you? How difficult is to ask yourself: “Am I in control of my emotions and my life? Am I possessed by my properties or material things or do I possess them?” “Am I ready and prepared to face the storm?” Am I able to exercise with Wisdom and intention my “reasoned choice”, as Epictetus called it? And am I capable of understanding what is behind my “reasoned choice” and what is just opinion, or is out of my control?  

We force ourselves to do many things, just because everybody is doing it. We end up losing control of our lives and our goals and desires. We do things that have no impact on us achieving our true goals and desires, all because we don’t simply take the time to ascertain what we really want in our life. If, on a rare occasion, one finds the time to do so, more often than not, one isn’t emotionally prepared to handle it and is even afraid to discover what is really important. So we don’t even try and yet, we’re still afraid of failing. Stoics say: just try. Nobody can be perfect and not everyone can be a sage. But trying means to be a better person than the day before. And if done with determination every day, it could lead to more happiness and tranquility than rage or tediousness. Stoics (just like Buffett) try to “Enjoy every day” in this wonderful journey called life; this always surprising pursuit in which you can “spend each day as if it were your last”, and as Marcus Aurelius wrote: “Without frenzy, laziness or any pretending”. 

There’s a lot of the Stoic philosophy in the unpretentious, but solid viewpoint of the world in the great “Value Investors”. It’s unplanned incidentally, because it’s a natural outcome of the common sense that is not regarded as precious as it really is because it seems too simple. Its principles for living a good life are “just so simple” as Charlie Munger said numerous times. In my experience, it is not always easy when you really have to apply those principles and values to your everyday life. Especially in 2021, a world in which noise is constant and overwhelming. And the strength required to cut it must be great. That’s why for me, today more than ever, the Stoics and their vision are critical for a happy life and happy investing. We need to have a sound mind, that can think and live outside the box, while not being reclusive or withdrawn. Observing all that is around us with bright eyes and inquisitive brains. All the rest is just noise.  

Feel free to stoically gather together your thoughts about this article and send me a comment to:

marco@blikebuffett.com 

The power of Inactivity

Be like Buffett

I’ve experienced as a business owner what hard work really means; working from 04.30 am to midnight, driven by a burning desire to accomplish your goals. In my case, the few years committed to working in this unrealistic way, combined with a specific talent for the Real Estate brokerage business, paid off.

But then, at a certain point, you have to stop and think. You have to find the time to ask yourself where you are going with it all. Ask yourself if you’re managing your life in the way you want to and how and if you’re getting what you want to. Moreover, you must ask yourself if there’s a way to accomplish more by doing less. The truth is, it may be not worth working like a mad dog your entire life, even if you like the business you are in. There are few people who sincerely dislike having friends or going out to a nice restaurant with someone you enjoy spending time with. Or maybe even experiencing the joy of having a son or a daughter to share your life with.

And what if taking the time to do nothing would bring more profitability to you in the long term? What if your level of happiness and ability to better analyze things (at a slower pace) would increase your chance of making more money in the future?

Often what is counter-intuitive is worth considering. Contemplate this: in life and in the investment world, every now and then you have to take the road less traveled. The most important thing is that you do so after thinking it over rationally. If you just jump from one meeting to another and your day is constantly full of appointments, you’ll probably miss the next big opportunity; the one that you should be ready for because you’re unlikely to get a second chance at. Remember such opportunities come to those who are prepared and are able to recognize those opportunities as opportunities.

Those who minds sifted through all the noise and the hustle and bustle to make decisions based on facts and reasoning. The independent thinkers who took enough time being ‘idle’ to equip themselves emotionally to identify these opportunities. It is important to take advantage of the downtime you had in the in the past to be ready for when the right time comes, and you have to take a swing. And to just take a small swing, (“doing it in a small scale”says Warren), is basically the same as not doing it all; in your investment life you will not find many big opportunities. If your facts and reasoning are right; if they are in your area of competence, it doesnt matter who agrees with you or not. You gotta swing.

So, in the end, (as usual) the majority of things everybody believes about money and investment is wrong. They think it must be complicated and you have to look for risky options to get rich and make money; that it is exhausting, takes complete dedication, and more busywork that most people could endure. Well, it’s not true. It requires more, actually. It requires sophisticated slacking. A path that is, pretty much uncharted, and unique for every human being. If it truly were only sweat and taking risks, then almost anybody could do it. Your burning desire to succeed must drive you to the adventure you love, not into slavery just for money.

If it turns you on, it will be successful. If it drives your best thoughts and qualities, it will make you happy. And rich.

Sono occupato, sto pensando..

Education

Intendiamoci, io sono un naturale “hard worker” e non ho nulla contro i grandi lavoratori. Non parliamo di questo. Io vorrei sottolineare come l’iperattività forzata non porti i risultati che si crede. Se lavoro molto è perchè forse non lavoro mai. Investo con coraggio del tempo a trovare cio’ che soddisfa la mia natura. Persisto a concentrarmi seriamente su cio’ che mi riesce meglio e mi piace fare e lascio perdere il resto. O almeno ci provo. Ci ho messo anni per riuscirci. Odio per esempio il bricolage ed i lavori manuali. Perchè dovrei imparare a farli (male) togliendo il lavoro ad un bravo handyman? E’ facile solo a dirsi, infatti la maggior parte delle persone perde questa concentrazione e spreca la vita attendendo la fine del supplizio quotidiano che sopporta dal lunedi’ al venerdi’. Spendere 5 giorni per guadagnarne 2 non mi sembra un “good arbitrage”. L’attesa della pensione è un’altra tragedia che non condivido.

Piu’ che il lusso, il denaro, la capacità di comprare “comforts”, nella vita gioca a favore della felicita’ un genuino, quotidiano  entusiasmo svincolato dal “dovere”. Senza poter scegliere di essere inattivi e senza la giusta distanza da troppi stimoli esterni è difficile rimanere concentrati sulle cose o sulle persone realmente importanti per noi. Trovate il tempo per rifletterci…

(..continua..) 

Feel free to send your comments in italian or english at:

marco@blikebuffett.com

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Last posts

Waiting

Be like Buffett

WAITING (part 1)

In the investment world, you need patience. Unlike trading or speculating where the short-term benefit comes from being opportunistic, in ‘real’ investing, it is essential for the intelligent investor to wait patiently to reap long-term rewards. Waiting also possesses another virtue: the ability of gleaning more wisdom while waiting for the right pitch. Be prepared to wait for years if necessary. I have learned from Buffett and Munger to be patient. Watching the most successful investors put aside their impatience to just do ‘something’ with the market when there is in fact nothing to be done, was a real-opener for me. All value investors have this and other similar traits in common. Yet at the same time, they are never clones. Even though they start off from ‘the same house’ of their patriarch Benjamin Graham, they follow different paths and explore different streets in ‘the same town’ Buffett calls “Graham and Doddsville”. Over the decades, more than just one have successfully applied an ‘updated version’ of the same old principles to investing (which still work in the modern investment world). Having said that, even the more traditionalist like Walter Schloss and his son have done more than ok.

Whenever I find something very interesting in one of Buffett’s interviews, I watch it multiple times, again and again. It helps me think about how I can put in practice what he is saying or recommending; how I can utilize it in my everyday life. If you’re able to read through some of the quotes of great investors, you’ll find treasure expressed in just a few words. I’ve learnt as a business owner that if it takes a lot of words and negotiating to come to a deal, it’s probably the wrong deal. So as value investors, let’s not forget the key-concept that underpin our investment philosophy: we must remind ourselves each and every day to bid our time. You don’t make money when you buy stocks and you don’t make money when you sell stocks; you make money by waiting.

Humans have a tendency to be impatient and to suffer from boredom. While on the other hand, they also have a tendency to gamble. Investing is all about becoming a better human being in order to succeed. And it’s training in how to be a stoic. The pursuit of good virtues. You have to be able to find the part of yourself that controls your emotions and learn the best way to keep yourself in check. There are certain times that it is crucial you don’t get swept away by emotions; you have to bring to the table rationality, you have to be like Buffett. Let’s utilize the best attributes of being human: our reasoned choice, our rationality. Let’s put them both to work. We’ve conquered this world as a species because of our inquisitive minds. We can do wonderful things and avoid disasters by simply letting facts and reasoning defeat irrationality and weakness of spirit. It’s hard to do it but it can be done. How? With practice. And practice demands time and patience. It requires focus. The good thing about practice is that it requires strength more than having any special talent or a high IQ. It can be achieved by anyone. Don’t be afraid of repetition or practice or starting all over again. If it’s a fun and useful game, why not play it again? It is a huge advantage to have such an attitude (even though stoics are often criticized for it). Being repetitive is a bad thing? Not at all, it works fabulously not only in some aspects of life, but also in investing. Investing is not like cake in a diet: in investing too much of a good thing is a good thing!  (to be continued)

“Take the high road, its uncrowded”

Be like Buffett

I highly recommend reading Warren Buffett’s most recent letter regarding the donation on 23rd of June (4.1 billion). It’s on the Berkshire Hathaway website, and if it doesn’t resonate with your capitalist heart, it means that all your efforts to be a better person and a true capitalist are in vain. In my opinion, it doesn’t mean anything if you make a lot of money and don’t have any concept of appreciation; you’ll just be part of the crowded road of jerks that become jerkier when they get more money. I’m not a writer so I need as usual an appropriate stoic to help better explain what I mean:

“If only the hearts of the wealthy were opened to all! How great the fears high fortune stirs up within them.” (Seneca)

Doing the right thing is appreciating what you achieved. If you manage to get good results by just doing your job (for example, you made a good investment and successfully completed your task), why don’t you just silently and humbly move on to the next task? Move on to the next thing, without having to take credit, bragging or looking for a recognition for simply doing what you are supposed to do. In a nutshell, just do your job. Do it consistently, happily. Be thankful that things, big or small, are going in the direction you planned or wanted. Don’t think you need to become a different person. Take the next step; do the job at hand. And try to do it right again. Remember, many people are also trying to find success (following the same steps as you) but for many different reasons they are incapable of achieving good results. Think about others and make a reasoned choice about what you have, especially if you have more than you need, and think how to make good use of it.

When I encourage you to think like a true rich person or to be like Buffett, that’s what I have in mind. That’s the happiness and peace of mind I visualize in taking the high road: to pursue with honesty your own goals, whatever they might be. In the end, we all want to be happy, independent, free to apply reasoned choices to our lives. To put it in a few words, we want to be a better person than we were the day before, and if possible, leave the world a better place than we found it. As the stoics would say, we want to behave and think like a “philosopher”. Buffett is the most famous and well-known example of the good a rich investor/philosopher can do for a society by giving back what his talents produced, in terms of wealth. This ‘true wealth’ was accomplished over many decades, while living a happy life, doing what he likes the most: investing. Everyday. Without stopping and indulging in self-celebration or becoming complacent (the biggest danger around the corner for many successful people and businesses). “If only the hearts of the wealthy were opened to all!” If you can pile up extra-money that is of no use to you, you can easily give 99.9 percent away. Or you can be useful to others in many ways, not only with your money… even when your name is not Seneca or Warren Buffett.

P.S: Happy investing everyone. And when I say everyone I really mean everyone. Because remember : blikebuffett and Value Investing is more a “How” than a “How much” .

Wanna be a pro? Practice!

Education

“Thats why the philosophers warn us not to be satisfied with mere learning, but to add practice and then training”.(Epictetus, Discourses) 

In investing,the goal is very simple: “Investing is laying out money now to get more money back in the future-more money in real terms, after taking inflation into account”.

We already know many people forget that and start to say that investing is merely speculative and not an investment at all. Another idea(including mine) is that the investment world purposely uses a variety of investment products and instruments that make it even more complicated for a layman to grasp, just to try and take advantage of their savings, while charging them outrageous fees.

Out of all instruments I know (preferred stocks included), common stocks are the only thing that I consider pieces of a business. And, as a business man and business owner, I assess stocks and analyze a publicly traded company using that caveat. I have just one approach when I’m buying a business’s stocks: I act like I’m buying the entire business. Whenever I am taking a business into consideration, the first thing I check is if it is a business I understand or I have experience with. It must be within my area of expertise. Over time,I’ve created my own ‘filter system’ and I’ve started to filter out the characteristics of the business that I don’t like. If a business or a corporation makes it through those filters, I move on to my ‘evaluation’ phase. When I figure out the intrinsic value of an entire business, I ask myself if I’m also able to predict what will happen with this business in the future. Only then do I check the actual market value and the price of the outstanding shares.The concept of ‘Intrinsic Value’ and ‘Margin of Safety’, (combined with as much understanding of accounting as possible), complete my set of mental tools and analysis. However,I will say that it’s all a lifelong process that everybody has to figure out for themselves.

So, why after many decades of studying and learning from Graham, Buffett, and Value Investing, do most students forget to just keep it simple? They tend to use the concepts and tools that they’ve learned and studied (or developed themselves), and forget the basic lessons of Value Investing. For example, they often fail to focus on accounting and instead focus on irrevelant things. Or they underestimate how much they can learn from a Nebraskan woman with a cart that created from scratch the biggest furniture store in the country.

Learning from real life experiences is the way to go; the ‘hands on’ approach of ‘just doing it’. Simply studying a bunch of formulas and theories  doesn’t work….at all. You can’t learn how to drive a car or fly a plane by just studying the manual

I’ve noticed that many young “investors” or “professional money managers” learn and study one thing, but then put into practice something else, without being consistent or rational.  It would be much more advantageous to merely practice and apply one investment philosophy.

The first thing you have to check before going into the investment business is if you are emotionally capable of handling ‘real investing’.

Not only applying what seems to be right theoretically, but also being able to rationally apply real world methods consistently.

Time and again, I’ve seen many guys on blogs, podcasts, and videos, profess they’ve read “The Intelligent Investor” or “Security Analysis”. They claim to agree with Buffett’s approach to investing but their actions simply don’t add up; they do not demostrate his approach or philosophy. They aren’t even able to quote Buffet or Graham accurately so I can’t imagine what they do when investing money.
I don’t know any other way when evaluating a business except the one that makes sense from a value standpoint. I don’t study any other approach or method except the “Value Investment”. It hooked me from the get-go, and like a Catholic marriage, I’ve never ‘changed horses’ (like Abe Lincoln used to say, it may not be a perfect horse, but I know its flaws and it serves me pretty well) .
So I think I will never exchange my ‘spouse’. I was lucky enough to be a virgin before my ‘marriage’; I had no formal business school training. It probably helped me to wade through a lot of distractions and strange theories. Always remember: Every good investment is a value investment by definition. That’s why I persistently stuck with learning how to better read financial reports,10ks, and 10Qs and refined my skills.
To have a good mind for business and investing it is crucial to own and start a business or more than one at a young age. There’s no use in learning anything if you don’t actually use those principles in the real world. “For as time passes we forget what we learned and end up doing the opposite, and hold opinions the opposite of what we should” (Epictetus, Discourses 2.9.13-14) 

Feel free to reach out or to comment at :

marco@blikebuffett.com

 

 

All the rest is noise

Discipline

Marcus Aurelius wrote his “Meditations” as a reminder to himself to daily practice the virtues he sought in life. He wasn’t trying to be a teacher and he probably didn’t expect to be a writer. I think we should try in our personal and professional life to do just the same, Focus on our own goals, not on what others think or expect from us.  

How miserable life would be if one tried merely to impress others. A life many people spend buying things they don’t like to impress people that don’t like them, desperately trying to be recognized or remembered without investing any time getting clarity, peace of mind, or gaining wisdom.   

How difficult is to recognize all the extrinsic factors that can only harm you? How difficult is to ask yourself: “Am I in control of my emotions and my life? Am I possessed by my properties or material things or do I possess them?” “Am I ready and prepared to face the storm?” Am I able to exercise with Wisdom and intention my “reasoned choice”, as Epictetus called it? And am I capable of understanding what is behind my “reasoned choice” and what is just opinion, or is out of my control?  

We force ourselves to do many things, just because everybody is doing it. We end up losing control of our lives and our goals and desires. We do things that have no impact on us achieving our true goals and desires, all because we don’t simply take the time to ascertain what we really want in our life. If, on a rare occasion, one finds the time to do so, more often than not, one isn’t emotionally prepared to handle it and is even afraid to discover what is really important. So we don’t even try and yet, we’re still afraid of failing. Stoics say: just try. Nobody can be perfect and not everyone can be a sage. But trying means to be a better person than the day before. And if done with determination every day, it could lead to more happiness and tranquility than rage or tediousness. Stoics (just like Buffett) try to “Enjoy every day” in this wonderful journey called life; this always surprising pursuit in which you can “spend each day as if it were your last”, and as Marcus Aurelius wrote: “Without frenzy, laziness or any pretending”. 

There’s a lot of the Stoic philosophy in the unpretentious, but solid viewpoint of the world in the great “Value Investors”. It’s unplanned incidentally, because it’s a natural outcome of the common sense that is not regarded as precious as it really is because it seems too simple. Its principles for living a good life are “just so simple” as Charlie Munger said numerous times. In my experience, it is not always easy when you really have to apply those principles and values to your everyday life. Especially in 2021, a world in which noise is constant and overwhelming. And the strength required to cut it must be great. That’s why for me, today more than ever, the Stoics and their vision are critical for a happy life and happy investing. We need to have a sound mind, that can think and live outside the box, while not being reclusive or withdrawn. Observing all that is around us with bright eyes and inquisitive brains. All the rest is just noise.  

Feel free to stoically gather together your thoughts about this article and send me a comment to:

marco@blikebuffett.com 

The power of Inactivity

Be like Buffett

I’ve experienced as a business owner what hard work really means; working from 04.30 am to midnight, driven by a burning desire to accomplish your goals. In my case, the few years committed to working in this unrealistic way, combined with a specific talent for the Real Estate brokerage business, paid off.

But then, at a certain point, you have to stop and think. You have to find the time to ask yourself where you are going with it all. Ask yourself if you’re managing your life in the way you want to and how and if you’re getting what you want to. Moreover, you must ask yourself if there’s a way to accomplish more by doing less. The truth is, it may be not worth working like a mad dog your entire life, even if you like the business you are in. There are few people who sincerely dislike having friends or going out to a nice restaurant with someone you enjoy spending time with. Or maybe even experiencing the joy of having a son or a daughter to share your life with.

And what if taking the time to do nothing would bring more profitability to you in the long term? What if your level of happiness and ability to better analyze things (at a slower pace) would increase your chance of making more money in the future?

Often what is counter-intuitive is worth considering. Contemplate this: in life and in the investment world, every now and then you have to take the road less traveled. The most important thing is that you do so after thinking it over rationally. If you just jump from one meeting to another and your day is constantly full of appointments, you’ll probably miss the next big opportunity; the one that you should be ready for because you’re unlikely to get a second chance at. Remember such opportunities come to those who are prepared and are able to recognize those opportunities as opportunities.

Those who minds sifted through all the noise and the hustle and bustle to make decisions based on facts and reasoning. The independent thinkers who took enough time being ‘idle’ to equip themselves emotionally to identify these opportunities. It is important to take advantage of the downtime you had in the in the past to be ready for when the right time comes, and you have to take a swing. And to just take a small swing, (“doing it in a small scale”says Warren), is basically the same as not doing it all; in your investment life you will not find many big opportunities. If your facts and reasoning are right; if they are in your area of competence, it doesnt matter who agrees with you or not. You gotta swing.

So, in the end, (as usual) the majority of things everybody believes about money and investment is wrong. They think it must be complicated and you have to look for risky options to get rich and make money; that it is exhausting, takes complete dedication, and more busywork that most people could endure. Well, it’s not true. It requires more, actually. It requires sophisticated slacking. A path that is, pretty much uncharted, and unique for every human being. If it truly were only sweat and taking risks, then almost anybody could do it. Your burning desire to succeed must drive you to the adventure you love, not into slavery just for money.

If it turns you on, it will be successful. If it drives your best thoughts and qualities, it will make you happy. And rich.

Sono occupato, sto pensando..

Education

Intendiamoci, io sono un naturale “hard worker” e non ho nulla contro i grandi lavoratori. Non parliamo di questo. Io vorrei sottolineare come l’iperattività forzata non porti i risultati che si crede. Se lavoro molto è perchè forse non lavoro mai. Investo con coraggio del tempo a trovare cio’ che soddisfa la mia natura. Persisto a concentrarmi seriamente su cio’ che mi riesce meglio e mi piace fare e lascio perdere il resto. O almeno ci provo. Ci ho messo anni per riuscirci. Odio per esempio il bricolage ed i lavori manuali. Perchè dovrei imparare a farli (male) togliendo il lavoro ad un bravo handyman? E’ facile solo a dirsi, infatti la maggior parte delle persone perde questa concentrazione e spreca la vita attendendo la fine del supplizio quotidiano che sopporta dal lunedi’ al venerdi’. Spendere 5 giorni per guadagnarne 2 non mi sembra un “good arbitrage”. L’attesa della pensione è un’altra tragedia che non condivido.

Piu’ che il lusso, il denaro, la capacità di comprare “comforts”, nella vita gioca a favore della felicita’ un genuino, quotidiano  entusiasmo svincolato dal “dovere”. Senza poter scegliere di essere inattivi e senza la giusta distanza da troppi stimoli esterni è difficile rimanere concentrati sulle cose o sulle persone realmente importanti per noi. Trovate il tempo per rifletterci…

(..continua..) 

Feel free to send your comments in italian or english at:

marco@blikebuffett.com