Value Investing (in Yourself)

While reading some books on investing, I’ve been overwhelmed by the similarities the investment approach of Warren Buffett and Charlie Munger has to the proper approach to life.

Buffett and Munger note that their investment approach eschews an obsession with macro policies. If you talk to most guys on the Street, their views change every day based on whether Bernake farted or gave a waiter a poor tip. Where are interest rates going? What about QE3? Everyone is looking for a quick trade.

In contrast, Buffett and Munger focus on investing in businesses that will be around in 20, 30, and 100 years. The market will rise and fall over the next 20 years. But people will still be drinking Coca-Cola. (“Unless you would buy the entire company, do not buy a share of stock.”)

Their approach resonates with me, as it mimics my approach to life.

I don’t worry that much about gender relations or broader socio-political trends. I’ll throw an, “American women are evil,” post out as some red meat to hungry dogs, but that’s not really my gig.

I lift weights, make money, read books, and juice. I’m going to buy my first investment property in 2013.

When I don’t know something, I immerse myself in it (warning: that’s a really boring book). I don’t get weighted down by negative people or losers.

When I get older, I’ll be juiced to the gills with testosterone and human growth hormone.

In 4 years the world will change. It won’t matter. I’ll adapt.

Eventually I’ll be really old. In 40 years the world will be completely different. I’ll be a grey-haired mean old bastard and still living the life.

Warren Buffett’s Best Investment Tip

(Dale Carnegie is dead, but his book on public speaking, The Quick and Easy Way to Effective Speaking, is available here.)

Charlie Munger’s Secret to Getting Rich

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  • http://youtube.com/amusedmastery AmusedMastery

    Good stuff. You alone cannot control where societal trends are going, only where your own life is going.