{"id":13586,"date":"2023-01-25T23:56:00","date_gmt":"2023-01-25T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=13586"},"modified":"2025-02-25T08:50:41","modified_gmt":"2025-02-25T00:50:41","slug":"make-u-very-rich","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2023\/01\/25\/make-u-very-rich\/","title":{"rendered":"Two or three stocks in your life can make you very rich"},"content":{"rendered":"\n<p>I have repeatedly emphasized in the 4-3 of my book &#8220;<a href=\"https:\/\/www.books.com.tw\/products\/0010935641?sloc=main\" target=\"_blank\" rel=\"noreferrer noopener\">The Rules of 10 Baggers<\/a>&#8221; and 1-5 in the &#8220;<a href=\"https:\/\/www.books.com.tw\/products\/0010889106?sloc=main\" target=\"_blank\" rel=\"noreferrer noopener\">The Rules of Super Growth Stocks Investing<\/a>&#8220;, as well as in the blog: &#8220;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.&#8221; This is also what Buffett said &#8220;As long as you don&#8217;t do too much wrong, you only need to do very few things in your life (just succeed).\u201d<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/01\/25\/make-u-very-rich\/#Stocks_make_you_very_rich_are_100_times_more_returns\" >Stocks make you very rich are 100 times more returns<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/01\/25\/make-u-very-rich\/#Dont_be_afraid_to_miss_out_on_a_good_business\" >Don&#8217;t be afraid to miss out on a good business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/01\/25\/make-u-very-rich\/#Time_discipline_patience\" >Time, discipline, patience<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/01\/25\/make-u-very-rich\/#Examples\" >Examples<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/01\/25\/make-u-very-rich\/#Ben_Graham\" >Ben Graham<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/01\/25\/make-u-very-rich\/#Charlie_Munger\" >Charlie Munger<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/01\/25\/make-u-very-rich\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stocks_make_you_very_rich_are_100_times_more_returns\"><\/span>Stocks make you very rich are 100 times more returns<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>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 &#8220;<a href=\"https:\/\/www.books.com.tw\/products\/0010935641?sloc=main\" target=\"_blank\" rel=\"noreferrer noopener\">The Rules of 10 Baggers<\/a>&#8220;, how many 5, 10, 20, and 100 have been generated in the past 5, 10, 20, and 30 years. , 1000, 10000 times shares.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dont_be_afraid_to_miss_out_on_a_good_business\"><\/span>Don&#8217;t be afraid to miss out on a good business<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>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 &#8211; 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.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Time_discipline_patience\"><\/span>Time, discipline, patience<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Most times, doing nothing is the best investment strategy. But most people can&#8217;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.<\/p>\n\n\n\n<p>Recently retired investment celebrity Bill Miller. In his last letter to investors in his 40-year investing career, Bill Miller reminded investors that &#8220;<em>We believe time<\/em>,&nbsp;<em>not timing<\/em>, is&nbsp;<em>key<\/em>&nbsp;to building&nbsp;<em>wealth<\/em>&nbsp;in the&nbsp;<em>stock market<\/em>.&#8221; In particular, his formulation that \u201cit&#8217;s time, not&nbsp;<em>timing<\/em>\u201d that leads to real wealth.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Examples\"><\/span>Examples<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ben_Graham\"><\/span>Ben Graham<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Buffett\u2019s 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 &#8220;<a href=\"https:\/\/www.amazon.com\/Intelligent-Investor-Definitive-Investing-Essentials\/dp\/0060555661\" target=\"_blank\" rel=\"noreferrer noopener\">The Intelligent Investor&nbsp;<\/a>&#8220;. <\/p>\n\n\n\n<p>But few people know that Graham&#8217;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.<\/p>\n\n\n\n<p>Charlie Munger specifically pointed out in the Daily Journal\u2019s 2023 shareholder meeting: \u201cGraham 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\u2019s own life, you\u2019ll see that what he taught wasn\u2019t the way he got rich himself. By the way, he told that story on himself late in life.&#8221; <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Charlie_Munger\"><\/span>Charlie Munger<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As for Charlie Munger himself, I mentioned in the section &#8220;Adopting a concentrated investment strategy that is expected to earn excess returns&#8221; on page 212 of my book &#8220;<a href=\"https:\/\/www.books.com.tw\/products\/0010935641?sloc=main\" target=\"_blank\" rel=\"noreferrer noopener\">The Rule of ten baggers<\/a>&#8220;, section 4-3:<\/p>\n\n\n\n<p>At the end of 2021, there are really only 3 stocks in Munger&#8217;s personal investment portfolio: Berkshire (tickers: BRK.A and BRK.B), Costco (ticker: COST ), Himalaya Capital (Unlisted). &#8220;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"170\" height=\"131\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2022\/09\/r.jpg\" alt=\"very rich\" class=\"wp-image-13587\"\/><figcaption class=\"wp-element-caption\">Credit: telegraph.co.uk<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/09\/26\/long-term-investment-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">Andy Lin&#8217;s long-term investment experience sharing<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/02\/24\/andy-lin-investment-style\/\">The key points of Andy Lin investment style<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/12\/good-companies-are-rare-two-or-three-will-make-you-very-rich-take-texas-instruments-as-an-example\/\" target=\"_blank\" rel=\"noreferrer noopener\">Great companies are rare, two or three will make you very rich<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/07\/a-few-in-lifetime\/\" target=\"_blank\" rel=\"noreferrer noopener\">Do it right a few times in your lifetime is enough<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/01\/25\/make-u-very-rich\/\">Two or three stocks in your life can make you very rich<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/\" target=\"_blank\" rel=\"noreferrer noopener\">Is Buffett no longer hold for long haul? TSMC, HP, and US Bancorp cases study<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/18\/why-concentrated-investment\/\">Why concentrated investment?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/10\/14\/no-fear-of-miss-out\/\" target=\"_blank\" rel=\"noreferrer noopener\">No fear of miss out a great company, No FOMO<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Texas Instruments make money? Amazing long term capital reward and company net profit margin!<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/02\/17\/charlie-munger-2023-djco\/\">Charlie Munger speaks at 2023 Daily Journal Shareholders Meeting<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Two or three stocks in your lifetime can make you very rich. Excellent companies will still be excellent companies three to five years later. However, most people do not agree with this statement. They always think that the stock prices of excellent companies are always high, and this perception is not wrong. But investors always miss the forest for the trees, mistaking price for value and misplacing cause and effect.<\/p>\n","protected":false},"author":1,"featured_media":13587,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36,50,15,33,14,17,35,70,11],"tags":[48,49,215,947],"class_list":["post-13586","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-concentrated-investing","category-benjamin-graham","category-charlie-munger","category-growth-investing","category-investing-concept","category-investing-psychology","category-long-term-investing","category-patience","category-buffett","tag-brk-a","tag-brk-b","tag-cost","tag-himalaya-capital"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/13586","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=13586"}],"version-history":[{"count":26,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/13586\/revisions"}],"predecessor-version":[{"id":34566,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/13586\/revisions\/34566"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/13587"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=13586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=13586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=13586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}