Luke

Back to posting online and keen to start sharing ideas. I've now got a Substack too! As a first one, here is my write up on Root insurance. Would love to hear any thoughts! substack.com/home/post/p-193…

Nothing like hearing this from a CEO:

This is absolutely amazing. Thank you @Speedwell_LLC speedwellresearch.com/2024/0…)%20fake%20listings.

This series is absolutely incredible. I know I’m late to the party, but kudos to @morganhousel and @davis_advisors for putting this content out. davisfunds.com/mastering-the…

"We regard the greatest risk for our investors after the obvious potential for us to buy the wrong shares or pay too much for shares in the right companies, as being reinvestment risk." - Terry Smith

“When I write the BRK annual report, I hit these blocks. & the block isn't because I've run out of words in the dictionary; the block is because I haven't got it straight in my own mind yet. & there is nothing like writing to force you to think and get your thoughts straight.” WB

Li Lu on the meaning of life: “The meaning of life is the pursuit of true knowledge”

This might be my favourite Munger quote “I think I've been in the top 5% of my age cohort all my life in understanding the power of incentives, and all my life I've underestimated it.”

Andrew Brenton: "Investors focus on the quantity, quality and timing of the cash that will be returned to them from the companies they own, while speculators worry about what other people will pay for their holdings."

Berkshire Hathaway's investment in Scott Fetzer delivered a 24% rate of return just from dividends in the first 8 years of ownership! Buffett paid $315m for the business in 1986 and received $634m in dividends up to 1994.

“The best way to get what you want in life is to deserve it” ~ Charlie Munger I’m grateful for all the incredible lessons he was willing to share during his incredible life. RIP to a true legend.

Circle of competence from Christian Billinger: We only invest in businesses where we feel we understand the product offering, how the company makes money and the most important earnings drivers, the financial reporting, the values and ambitions of major shareholders and mgmt etc

Shareholder-aligned compensation plan from $ARB "KMP do not participate in any short-term or long-term incentive arrangements. The Board does not believe that incentives based on the Company's short term returns are appropriate to long term wealth creation for shareholders."

"Almost everyone thinks he fully recognizes how important incentives and disincentives are in changing cognition and behaviour, but this is not often so" ~ Charlie Munger

Nick Sleep's 4 most common psychological causes of investor misjudgement 1) Social Proof 2) Availability (the tendency to value easily available info more than less accessible info) 3) Probability-based thinking 4) Patience