You know what makes stock investing so dangerous? The fact that we can instantaneously combust a long-term strategy merely if we are having a bad day. The amount of damage we can wreck on our portfolios in under five minutes simply by logging onto a computer account is absolutely crazy. That is why I favor stock certificates, because it is a great way to build some friction and resistance between yourself and the stock you are trying to sell, as well as make it easier upon yourself to remember that you are a long-term owner of your stock.
A couple generations ago, it was very difficult to switch positions rapidly. You had to call up a broker and place a round lot (100 share increment) order, and most importantly, you had to pay a commission fee in the several hundreds of dollars. For a young professional just getting started … Read the rest of this article!
I understand why everyone cloaked in the Berkshire Hathaway story is dwarfed by Warren Buffett. After all, the man managed to compound wealth at a rate of 20% for half a century by investing (rather than, say, inventing) and he developed an aww-shucks persona (albeit a politically motivated one) that enabled him to relate to the public at a large in a way that many of the socially reclusive and inept money managers of the 20th and 21st century never could.
There are some managers of Berkshire subsidiaries that deserve far more attention than they actually receive, and Rose Blumkin is one of them. Charlie Munger was absolutely correct when he said the average businessmen could learn far more from the Nebraska Furniture Mart founder than by attending MBA classes that preach “twaddle” formulas.