3 things I’m thinking about this week…
1 – Luck...a Four Letter Word. This short but sweet blog from Morgan Housel addresses our hang-ups with luck. I say you got lucky, I look petty. I tell myself I got lucky, I feel small. He deftly reframes it by asking: what isn’t repeatable? Example: could Jeff Bezos create another Amazon today? Part of the story was driven by unique, non-repeatable conditions. But what is repeatable is his drive, long-term mindset and focus on the customer. That is how Housel thinks we can pull the right lessons from history that could help in the future.
2. - Managing Health Like The Markets. Edward Thorpe first became famous in showing us how to Beat the Dealer in blackjack, which was followed by success as a hedge fund manager. Thanks to John Mihaljevic for this Bloomberg article describing Thorpe’s current focus on health and longevity. This sums it up well: “So if I have an edge, it’s that I try to think things through for myself, look at the empirical evidence, manage risks and work hard at making the necessary changes. In some ways it’s not so different from the casinos and markets.”
3. - Speaking of Emulating Success... In our profession, we’re fortunate that talented investors are willing to discuss how they do things…not “hot” stock tips but their philosophy and process. Chris Cerrone of Akre Capital shared a few good ones on The Business Brew podcast. They try exceptionally hard not to sell their stocks…realizing that “interrupting compounding unnecessarily” as Charlie Munger put it, is costly to future results. They use “essence statements” to sift through mountains of information, helping them zero in on what matters. They prioritize business quality over bargains with new ideas…while insisting on a discount.
…and one more thing
Brief history of the covered headlamp era. Flourished in the 1960s to cover unsightly round headlights. Evolved to retract the headlight. Mainstream enough to appear on the bestselling Accord (I had one). Extinct since 2005.
-Dave