One of the potential pitfalls of reading about any activity is that the act of reading could potentially replace the much more important act of doing the activity. This is a concern that primarily crops up in the field of health and fitness—the act of regularly reading about dieting, lifting weights, and running could actually displace the act of dieting, lifting weights, and running because the fulfillment created by reading about something can actually occupy some of the mental space that would otherwise receive fulfillment by performing the act itself.
That concern could extend to finances as well—if you read about stocks and bonds all day, that could replace the act of actually … Read the rest of this article!
I presume that, when Warren Buffett discusses the rationale for a particular investment, he holds back a little bit of the rationale for making the investment so that his theses aren’t immediately adopted by others and thus driving the price of the stock up. I say this without negative judgment, as competitive insights are hard-won and Buffett owes no duty to third parties to diminish the effectiveness of his own insights.
Specifically, I was thinking about Warren Buffett’s investment in American Express, an important part of his lifetime accumulation of wealth. As you may know, he made a lot of money in 1963-1964 by purchasing American Express stock through his seven Buffett Limited … Read the rest of this article!