I like to reread Buffet's annual letters to Berkshire shareholders every few years. My key takeaway: Here's a super smart guy who did very, very well, but made some mistakes along the way, which he shares in the letters. If you're in the market, you're going to make mistakes. A book I like that's off the radar is How To Get Rich and Stay Rich by Fred J. Young. Out of print but available used. I visited with Fred once and he told me he had some regular contact with Warren back in late 1950s and early 1960s. I asked Fred if he invested with Warren and he said, "No, I thought I was smarter than him." He smiled as he said it.
I like to pose the "risk" question to people this way. (1) How would you feel if your investments went down 50%? (2) How would you feel if your IRA account statements showed that the $1,000,000 you had saved over a lifetime was now worth $500,000? It changes the perspective a bit.
A kindred spirit! I've known several insurance company officers over the years, and they were concentrated in - insurance company stock. That makes sense because they probably know what is going on in the insurance business, like you do in the electronics area.
Excellent. I'd never heard the term "open loop" but I sure understand it. After ten years with a company, my father left for a position that doubled his salary. Within a year he returned (at his old salary) because he realized he'd lost something by going for the money. Later he became president of that company. I found out Warren Buffett invested in it at one time. We lived across the street from a maintenance person at the company and that family was top quality in every way. I went to public schools and the local community college, and I wouldn't have it any other way. Mom and Dad taught me well. It does not take a lot of money to enjoy your life. Oh, Dad's salary was about nine times the minimum wage at the time. There were over 1,000 employees and the company did about $500 million in business (in today's dollars).
Like the "Black Box" at Long Term Capital Management no one knows what was going on - even the people running sometimes. Being susceptible to bias confirmation I'm sticking with index funds. My father used to talk about the new deodorant they came out with. It didn't get rid of the smell, but it spread it around so much no one could tell where the odor was coming from. Maybe index funds help in that way.
Adding to Number 8: "If you have jewelry like an engagement ring, be sure it’s scheduled separately." There are several reasons for this. First, coverage for jewelry is usually limited on your homeowner's policy. Second, most scheduled jewelry policies included "mysterious disappearance." Put a ring on the sink and can't find it later? Covered by mysterious disappearance. Otherwise, you'd have to prove it was stolen, etc. Having a good insurance agent helps a lot in this area. And it doesn't matter if they received a commission. It's all "baked into" the premium. If one agent receives 10% commission and the premium is $1,000 (just for example) and another agent received 15% commission and the premium is $1,000, it makes no difference. Just find the best coverage at the best price.
I think I heard the term “no noting investor” from Buffet. I also call it Mr. Magoo investing. Catastrophes abound around him but Mr. Magoo just keeps going through them, Maybe sometimes ignorance can be bliss.
Comments
I like to reread Buffet's annual letters to Berkshire shareholders every few years. My key takeaway: Here's a super smart guy who did very, very well, but made some mistakes along the way, which he shares in the letters. If you're in the market, you're going to make mistakes. A book I like that's off the radar is How To Get Rich and Stay Rich by Fred J. Young. Out of print but available used. I visited with Fred once and he told me he had some regular contact with Warren back in late 1950s and early 1960s. I asked Fred if he invested with Warren and he said, "No, I thought I was smarter than him." He smiled as he said it.
Post: Personal Finance Reading List
Link to comment from December 20, 2025
I thought the same thing. I doubt even Warren Buffett reads the Atlantic for investment perspective.
Post: Index Fund Bubble
Link to comment from December 6, 2025
I like to pose the "risk" question to people this way. (1) How would you feel if your investments went down 50%? (2) How would you feel if your IRA account statements showed that the $1,000,000 you had saved over a lifetime was now worth $500,000? It changes the perspective a bit.
Post: Index Fund Bubble
Link to comment from December 6, 2025
A kindred spirit! I've known several insurance company officers over the years, and they were concentrated in - insurance company stock. That makes sense because they probably know what is going on in the insurance business, like you do in the electronics area.
Post: Index Fund Bubble
Link to comment from December 6, 2025
Excellent. I'd never heard the term "open loop" but I sure understand it. After ten years with a company, my father left for a position that doubled his salary. Within a year he returned (at his old salary) because he realized he'd lost something by going for the money. Later he became president of that company. I found out Warren Buffett invested in it at one time. We lived across the street from a maintenance person at the company and that family was top quality in every way. I went to public schools and the local community college, and I wouldn't have it any other way. Mom and Dad taught me well. It does not take a lot of money to enjoy your life. Oh, Dad's salary was about nine times the minimum wage at the time. There were over 1,000 employees and the company did about $500 million in business (in today's dollars).
Post: Money, Happiness, and Choice
Link to comment from November 22, 2025
I have a checklist I use for investments.
- How do I get in?
- How much is it going to cost me?
- How do I get out?
- How much is it going to cost me?
This excellent article was a good reminder to stay with my "checklist" and hopefully avoid some of those problems.Post: Private Equity Traps
Link to comment from November 15, 2025
Like the "Black Box" at Long Term Capital Management no one knows what was going on - even the people running sometimes. Being susceptible to bias confirmation I'm sticking with index funds. My father used to talk about the new deodorant they came out with. It didn't get rid of the smell, but it spread it around so much no one could tell where the odor was coming from. Maybe index funds help in that way.
Post: Lessons from First Brands
Link to comment from November 1, 2025
Adding to Number 8: "If you have jewelry like an engagement ring, be sure it’s scheduled separately." There are several reasons for this. First, coverage for jewelry is usually limited on your homeowner's policy. Second, most scheduled jewelry policies included "mysterious disappearance." Put a ring on the sink and can't find it later? Covered by mysterious disappearance. Otherwise, you'd have to prove it was stolen, etc. Having a good insurance agent helps a lot in this area. And it doesn't matter if they received a commission. It's all "baked into" the premium. If one agent receives 10% commission and the premium is $1,000 (just for example) and another agent received 15% commission and the premium is $1,000, it makes no difference. Just find the best coverage at the best price.
Post: The Paradox of Smart Money Decisions
Link to comment from October 25, 2025
I think I heard the term “no noting investor” from Buffet. I also call it Mr. Magoo investing. Catastrophes abound around him but Mr. Magoo just keeps going through them, Maybe sometimes ignorance can be bliss.
Post: How Not To Invest
Link to comment from October 11, 2025
I didn't want a cop out. Give me a dollar amount that you think a 17-year-old girls life is worth?
Post: Navigating the Unknowns of Financial Decisions
Link to comment from September 14, 2025