I don’t think there is any better teacher than history for investors today.
“There is no better teacher than history in determining the future… There are answers worth billions of dollars in a $30 history book.”
― Charles T. Munger, in Poor Charlie’s Almanack
‘Bull! A History of the Boom and Bust’ by Maggie Mahar covers the beginning of the bull market in 1982 through the tech bubble bust and beginning of the recovery through 2004… [continue reading…]
I first heard of the book “The Outsiders” in Berkshire Hathaway’s 2012 letter to shareholders. And who is going to ignore a book that Buffett calls “outstanding!”?
The book goes in detail on 8 different CEOs who excelled at creating exceptional long term returns for shareholders. In fact, the average returns of these companies’ shares outperformed the S&P 500 by a factor of 20 – every $10,000 invested in these companies was worth $1.5 million 25 years later.
What’s their secret? And how can we use those lessons to find today’s great CEOs?
[continue reading…]Investors have to interpret a lot of numbers, and make sense of a lot of forecasts in order to come to well educated investment decisions. But many of us went through the math class that taught us how to do this asking the teacher, “When are we ever going to use this?” and spacing out.
