The AI narrative is powerful, but I believe the real winners will be those who combine innovation with durable economics. I wrote about this in my recent review — showing how thesis-driven investing captured both AI and energy transitions. Happy to share here
I agree. Oftentimes I think advice from successful fund managers (I’m thinking most of investment books) cannot be applied to individual investors, at least not literally. In this case the mental model, don’t swing at every idea, would be valuable. But how one can make wealth with 20 stock picks, perhaps, starting their learning journey parallel to their daily job, by trying to invest few hundred bucks a month? 🙂 You have to have mistakes, preferably early in your journey. One is the mental capacity of such guys will not be reachable by most of us and time spent on idea will be significantly smaller than full time investor. Second, the “trade less” idea maybe comes from the time when each trade was expensive and possibly incurred taxes for each transaction. Did large funds had tax deferred accounts and less than dollar transaction fees even 10-15 years ago? Third, as you know, running fund often comes with limitations on turnover, as you have explained in recent episodes, including trouble raising cash for new purchases that maybe require sale of reasonable return stock for a hope of better return.
I like it. Even long time stock picking services like TMF are changing their mindset from buy and hold to buy to hold , to even selling early if warranted. A big change for them imo. Holding to prove your patience, while watch certain picks continue to flounder is not really warranted in a lot of stock picks imo.
The AI narrative is powerful, but I believe the real winners will be those who combine innovation with durable economics. I wrote about this in my recent review — showing how thesis-driven investing captured both AI and energy transitions. Happy to share here
It's a mixed bag. Buffett is generally right they we would all do better to only invest in the things we have studied for a long time and understand really well. The problem is most of us are also in positions where we need to generate a good return every year (we aren't sitting on millions of dollars by age 30 like he was.)
I think the Punch Card strategy is a helpful mindset. It helps raise your hurdle rate, which we all need to do.
Let’s Connect. I love your content Brett.
The AI narrative is powerful, but I believe the real winners will be those who combine innovation with durable economics. I wrote about this in my recent review — showing how thesis-driven investing captured both AI and energy transitions. Happy to share here
https://thesisrationale.substack.com/p/annual-investment-review-20242025?r=48cf8j&utm_medium=ios
I agree. Oftentimes I think advice from successful fund managers (I’m thinking most of investment books) cannot be applied to individual investors, at least not literally. In this case the mental model, don’t swing at every idea, would be valuable. But how one can make wealth with 20 stock picks, perhaps, starting their learning journey parallel to their daily job, by trying to invest few hundred bucks a month? 🙂 You have to have mistakes, preferably early in your journey. One is the mental capacity of such guys will not be reachable by most of us and time spent on idea will be significantly smaller than full time investor. Second, the “trade less” idea maybe comes from the time when each trade was expensive and possibly incurred taxes for each transaction. Did large funds had tax deferred accounts and less than dollar transaction fees even 10-15 years ago? Third, as you know, running fund often comes with limitations on turnover, as you have explained in recent episodes, including trouble raising cash for new purchases that maybe require sale of reasonable return stock for a hope of better return.
Berkshire holds 96 companies.
Just saying
I like it. Even long time stock picking services like TMF are changing their mindset from buy and hold to buy to hold , to even selling early if warranted. A big change for them imo. Holding to prove your patience, while watch certain picks continue to flounder is not really warranted in a lot of stock picks imo.
Let’s Connect dave. I love your content.
The AI narrative is powerful, but I believe the real winners will be those who combine innovation with durable economics. I wrote about this in my recent review — showing how thesis-driven investing captured both AI and energy transitions. Happy to share here
https://thesisrationale.substack.com/p/annual-investment-review-20242025?r=48cf8j&utm_medium=ios
https://substack.com/@absolutetotalcompound/note/c-153279529?r=5g11d4
It's a mixed bag. Buffett is generally right they we would all do better to only invest in the things we have studied for a long time and understand really well. The problem is most of us are also in positions where we need to generate a good return every year (we aren't sitting on millions of dollars by age 30 like he was.)
I think the Punch Card strategy is a helpful mindset. It helps raise your hurdle rate, which we all need to do.
Also, you probably won't stick long enough to see multiple multi-baggers if you limit yourself to a 7 stocks portfolio.
Because everytime you see a new opportunity, you will have to sell one of the seven stocks you own to purchase it.
And you'll likely sell the one that has the highest valuation, which may be the future multi-bagger.