If you expect perfection in your spouse or in your friends or in companies you’re not going to find it.
The SPACs generally have to spend their money in two years, as I understand it. If you have to buy a business in two years, you put a gun to my head and said you’ve got to buy a business in two years, I’d buy one but it wouldn’t be much of one. If you’re running money from somebody else and you get a fee and you get the upside and you don’t have the downside, you’re going to buy something.
I knew there’d be a question on bitcoin or crypto and I thought to myself well, I watch these politicians dodge questions all the time … The truth is, I’m going to dodge that question. Because the truth is, we’ve probably got hundreds of thousands of people that are watching this that own bitcoin. And we’ve probably got two people that are short. So we’ve got a choice of making 400,000 people mad at us and unhappy, and making two people happy. And it’s just a dumb equation.
If you can identify six wonderful businesses, that is all the diversification you need, and you’re going to make a lot of money, and I will guarantee you that going into a seventh one rather than putting more money in your first one is a terrible mistake.
If I was running $1 million today, or $10 million for that matter, I’d be fully invested. Anyone who says that size does not hurt investment performance is selling. The highest rates of return I’ve ever achieved were in the 1950s. I killed the Dow. You ought to see the numbers. But I was investing peanuts then. It’s a huge structural advantage not to have a lot of money. I think I could make you 50% a year on $1 million. No, I know I could. I guarantee that.
Prices don’t tell me anything about a business
Most of the professional investors focus on what the stock is likely to do in the next year to avail all kinds of arcane methods of approaching that.
If you want to shoot rare, fast-moving elephants, you should always carry a loaded gun.
It personally gives me an edge when other people are not paying attention to reading and thinking, and are instead on their phones. It means that I gain knowledge from reading a few 10-K’s while others are tweeting what they had for breakfast.
You really don’t need leverage in this world much. If you’re smart, you’re going to make a lot of money without borrowing.