Matt Franz : Zealous For Knowledge

In, Out, or Too Tough

Pat Dorsy told Patrick O’Shaughnessy (Part 1, Part 2) “On the sell side you’re paid to say ‘Yes’, on the buy side you’re paid to say ‘No’.”

Warren Buffett agrees: “The difference between successful people and really successful people is that really successful people say ‘no’ to almost everything.”

It’s critical to know what you’re comfortable with and what you’re looking for. Be unreasonable, and don’t compromise your standards. What will you buy more of it the price decreases 50%? No investment should ever keep you up at night.

Charlie Munger says, “We have three baskets; in, out, and too tough… we have to have a special insight, or we’ll put it in the ‘too tough’

If you read an annual report a day and are honest about which basket it belongs in, you’ll do well as an investor.

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