I have repeatedly emphasized in the 4-3 of my book “The Rules of 10 Baggers” and 1-5 in the “The Rules of Super Growth Stocks Investing“, as well as in the blog: “An investor only needs to choose two or three stocks in his life. Can make you very rich; without holding too many stocks, but only for a long time.” This is also what Buffett said “As long as you don’t do too much wrong, you only need to do very few things in your life (just succeed).”
Stocks make you very rich are 100 times more returns
What are the odds of a real stock market? Please refer to my detailed analysis of Table 3 and Table 4 in Section 2-2 in Chapter 2 of the book “The Rules of 10 Baggers“, how many 5, 10, 20, and 100 have been generated in the past 5, 10, 20, and 30 years. , 1000, 10000 times shares.
Don’t be afraid to miss out on a good business
A good company will still be a good company three or five years later. However, most people do not agree with this sentence. They always think that the stock price of excellent companies is always high. This perception is not wrong. But investors always see the tree but not the forest, mistake the price as the value, and misplace the causal relationship – the stock price is too high because the company is excellent, and the stock price should not be the only obstacle to buying people. Still more than the current share price.
Time, discipline, patience
Most times, doing nothing is the best investment strategy. But most people can’t overcome this. They always think that there is always something to do. Only by turning on the computer and doing some stock trading can they convince themselves that they are serious about investing in the stock market. This is a typical demon in human investment. If investors cannot overcome this threshold, it will become very difficult to obtain ten times your shares.
Recently retired investment celebrity Bill Miller. In his last letter to investors in his 40-year investing career, Bill Miller reminded investors that “We believe time, not timing, is key to building wealth in the stock market.” In particular, his formulation that “it’s time, not timing” that leads to real wealth.
Buffett’s mentor, Ben Graham, if he did not have Buffett as an outstanding student. I believe most people would not know the existence of Graham, nor would they know that there is a great stock investment book called “The Intelligent Investor “.
But few people know that Graham’s investment career performance is not particularly brilliant, and of course it cannot be compared with Buffett, one of the best masters in history. Without Buffett as a student, Graham can only be regarded as one of the millionaires who made their fortunes from stock investment.
Charlie Munger specifically pointed out in the Daily Journal’s 2023 shareholder meeting: “Graham actually made more than half of all the money he made in his life out of one stock. And that stock was Geico, which was a great business. So if you actually look at the great man’s own life, you’ll see that what he taught wasn’t the way he got rich himself. By the way, he told that story on himself late in life.”
As for Charlie Munger himself, I mentioned in the section “Adopting a concentrated investment strategy that is expected to earn excess returns” on page 212 of my book “The Rule of ten baggers“, section 4-3:
At the end of 2021, there are really only 3 stocks in Munger’s personal investment portfolio: Berkshire (tickers: BRK.A and BRK.B), Costco (ticker: COST ), Himalaya Capital (Unlisted). “
- “Great companies are rare, two or three will make you very rich“
- “Do it right a few times in your lifetime is enough“
- “Two or three stocks in your life can make you very rich“
- “Why concentrated investment?“
- “No fear of miss out a great company, No FOMO“
- “How does Texas Instruments make money? Amazing long term capital reward and company net profit margin!“
- “Charlie Munger speaks at 2023 Daily Journal Shareholders Meeting“
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