Mental Models, Chow Yong Han, Page 12

Investing up to 40% in one stock

“We diversify substantially less than most investment operations. We might invest up to 40% of our net worth in a single security under conditions coupling an extremely high probability that our facts and reasoning...

September 8, 2019| Focus, Investing Read More

How much you win or lose, not how often you win

“It’s not whether you’re right or wrong, but how much money you make when you’re right and how much you lose when you’re wrong.” George Soros...

September 8, 2019| Investing, Nonlinearity Read More

Wait, wait, wait, pounce!

If you took our top fifteen decisions out, we’d have a pretty average record. It wasn’t hyperactivity, but a hell of a lot of patience. You stuck to your principles and when opportunities came along, you pounced on...

September 8, 2019| Investing, Nonlinearity Read More

Concentrate and bet big

In 1994, Charlie Munger was addressing a crowd at University of Southern California. (Extract from James Clear) When Warren lectures at business schools, he says, “I could improve your ultimate financial welfare...

September 8, 2019| Focus, Investing, Via Negativa Read More

Letting Go

(Excerpt from KindSpring) A senior monk and a junior monk were traveling together. At one point, they came to a river with a strong current. As the monks were preparing to cross the river, they saw a very young and...

September 8, 2019| Life, Via Negativa Read More

The most important question of your life: What are you willing to struggle for?

(Extracted from MarkManson.net) If I ask you, “What do you want out of life?” and you say something like, “I want to be happy and have a great family and a job I like,” it’s so ubiquitous that...

September 8, 2019| Inversion, Life Read More

Hell Yeah! Otherwise No!

(Excerpt from Anything You Want by Derek Sivers) If you’re not saying “HELL YEAH!” about something, say “no.” When deciding whether to do something, if you feel anything less than “Wow! That would be...

September 8, 2019| Focus Read More

Saying ‘No’ most of the time

“People think focus means saying yes to the thing you’ve got to focus on. But that’s not what it means at all. It means saying no to the hundred other good ideas that there are. You have to pick carefully. I’m...

September 8, 2019| Focus, Via Negativa Read More

Ted Williams and Warren Buffett wait for the fat pitch

(Extracted from Berkshire Hathaway 1997 Shareholder Letter) We try to exert a Ted Williams kind of discipline. In his book The Science of Hitting, Ted explains that he carved the strike zone into 77 cells, each the size...

September 8, 2019| Focus Read More

Focus gave Bill Gates and Warren Buffet their successes

(Extracted from gatesnotes) At first glance, Warren and I may seem like a mismatch. I’m a technology nerd. He’s an investor who doesn’t use email. In fact, I never expected to be friends with him. In...

September 8, 2019| Focus Read More