Every now and then, I find it important to step back and assess the big picture of what I am trying to do. Today, I wanted to share with you the main purpose of what I am trying to accomplish when I write articles here on my website or over on the investment advice website Seeking Alpha.
The short answer of what I am trying to accomplish is this: I want you to think like business owners. As a corollary to that, I want you to drown in income from your business ownership stakes. I want you to get richer, and see more money show up in your checking account, just for staying alive another month.
The long answer is this: The rise of online trading, coupled with the advent of the discount broker, has made it easier than ever to forgot that we are dealing with a real business. … Read the rest of this article!
Normally, I cover the “batting average” type of issues associated with wise stewardship of one’s money. Spending less than you earn, doing something with the surplus like diversifying into ownership interests in the most profitable companies the world has ever seen, and so on.
There is another component to it that is less often discussed–and this is the “home run” component, or the magnitude effect of your decisions.
You may have previously encountered the Warren Buffett quote that, when it is raining gold, it is better to reach for a bucket than a thimble. This advice was summed up well by Charlie Munger in Poor Charlie’s Almanack with the following quote on page 26:
“Success means being very patient, but aggressive when it’s time. And the more hard lessons you can learn vicariously rather than through your own hard-learned experiences, the better. Our investment style has been given a name–focus … Read the rest of this article!