Never Sell Berkshire Stock

Berkshire Hathaway is the company I know the best. This is the company that I would feel 100% fine with holding if the stock market, for some reason, closed for a few years. I would not lose any sleep in that type of scenario. I don’t know if there are any other companies I could definitely say that for with such conviction. 2014 is when I started buying shares. Then, I did an equal amount of selling and an equal amount of buying in 2015 – dumb. Then in 2016, I sold a bunch, like an ass, to buy stuff like Chipotle, which was a big mistake as I eventually sold the Chipotle position after a year at breakeven while Berkshire rose a bunch in 2016. After that, I learned my lesson and implemented my “Never Sell Berkshire Stock” rule: never sell Berkshire, unless it is trading at such an obscene premium that it would make Microsoft at the height of the dotcom bubble look amateurish. Berkshire is a foundational piece in the portfolio. Foundations shouldn’t be messed around with. Oh yeah, and one of these days I should probably get back to recording those shareholder’s letters…

Mental Model: The Definition of Cognitive Dissonance

I recently came across on Twitter one of the most bizarre letters I have ever read. This one letter addressed to Warren Buffett on why this investor is no longer going to be an investor of the company is probably one of the most convoluted and bat-shit insane thing I have read in awhile. I’ll keep it short for you this weekend – just the letter.

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An In-Depth Interview of Alice Schroeder, Author of The Snowball

I recently came across an excellent in-depth interview of The Snowball by Alice Schroeder. For those of you who need a quick refresher, The Snowball is “the” biography of Warren Buffett. It is an amazingly detailed, meticulously researched, and solidly written book that gives an intimate glimpse into the personal and professional life of Warren Buffett. I once made the mistake of giving it as a gift to a friend who had not interest in business and he didn’t make it past 20 pages. However, if you enjoyed The Snowball and appreciate all things Buffett and Berkshire Hathaway, you’ll love this interview. Here are a few curated excerpts of my favourite parts of the interview (as the full interview is extremely long – apparently snippets of my favourite parts has turned out pretty long too). Read the full interview here.

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Charlie Munger’s Secret Investing Formula

One of the questions asked at the 2015 Berkshire Hathaway Annual Meeting was in regards to what the secret investing formula Warren Buffett and Charlie Munger utilized to achieve such tremendous success over their careers. If you read that giant write up on our road trip to Omaha for the annual meeting, you would know that the answer that was given by Charlie Munger was that there was no specific formula. However, I was recently perusing Poor Charlie’s Almanack and Munger actually provided a specific formula! It’s such a no brainer. I really think Charlie outdid himself with this tremendous formula. Take a look. It will change your life.

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