During his recent interview with Bloomberg, Howard Marks discusses some of the greatest lessons from Charles Munger. Here’s an excerpt from the interview:
Marks: Well if you want to hit the long ball you have to be very patient.
And when the stock moves up the first 20% you can’t start taking profits. Charlie and Warren have held things for decades.
And the other thing is they were as… and Charlie always talked about this… you have very few moon-shots.
Charlie said within the last year that most of his wealth came from four decisions. What what would have happened if he would have start trimming those four decisions early.
He certainly would not have accomplished what he did.
And I think Warren would say the same thing, maybe the number four would be a little different with Warren, but Warren’s famous for having said put all your eggs in one basket and watch the basket really closely.
And I think that it wasn’t one basket, but the idea of concentration and patience coupled with good decisions makes for a great success.
Concentration and patience don’t accomplish anything if you can’t make above average investment decisions, but putting it all together is the formula for success.
You can listen to the entire discussion here:
For all the latest news and podcasts, join our free newsletter here.
Don’t forget to check out our FREE Large Cap 1000 – Stock Screener, here at The Acquirer’s Multiple:
