Some Thoughts On Investing From Various Authors

“Games are won by players who focus on the playing field –- not by those whose eyes are glued to the scoreboard.”

Warren Buffett

“It amazes me how people are often more willing to act based on little or no data than to use data that is a challenge to assemble.”

Robert J. Shiller

“If you aren’t thinking about owning a stock for ten years, don’t even think about owning it for ten minutes.”

Warren Buffett

“The broker said the stock was “poised to move.” Silly me, I thought he meant up.”

Randy Thurman

“You can get in way more trouble with a good idea than a bad idea, because you forget that the good idea has limits.”

Ben Graham


Some Thoughts On Various Subjects From Charles Munger

“I like people admitting they were complete stupid horses’ asses. I know I’ll perform better if I rub my nose in my mistakes. This is a wonderful trick to learn.”

Charles Munger

“Simplicity has a way of improving performance through enabling us to better understand what we are doing.”

Charles Munger

“An idea or fact is not worth more merely because it’s easily available to you.”

Charles Munger

“You ought to have an internal compass. So there should be all kinds of things you won’t do even though they’re perfectly legal. That’s the way we try to operate.”

Charles Munger

“I’m a great believer in solving hard problems by using a checklist. You need to get all the likely and unlikely answers before you; otherwise it’s easy to miss something important.”

Charles Munger

Some Thoughts On Various Subjects From Warren Buffett

“Success in investing doesn’t correlate with I.Q. Once you are above the level of 25; once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing.”

Warren Buffett

“Honesty is a very expensive gift, Don’t expect it from cheap people.”

Warren Buffett

“In investing, just as in baseball, to put runs on the scoreboard, one must watch the playing field, not the scoreboard.”

Warren Buffett

“Never give up searching for the job that you’re passionate about. Try to find the job you’d have if you were independently rich. Forget about the pay. When you’re associating with the people that you love, doing what you love, it doesn’t get any better than that.”

Warren Buffett

“Risk comes from not knowing what you’re doing.”

Warren Buffett

Some Thoughts On Mental Models From Various Authors

“Mental models are deeply held internal images of how the world works, images that limit us to familiar ways of thinking and acting. Very often, we are not consciously aware of our mental models or the effects they have on our behavior”

Peter Senge

“You have to learn all the big ideas in the key disciplines in a way that they’re in a mental latticework in your head and you automatically use them for the rest of your life. If you do that, I solemnly promise you that one day you’ll be walking down the street and you’ll look to your right and left and you’ll think “my heavenly days, I’m now one of the few competent people in my whole age cohort.” If you don’t do it, many of the brightest of you will live in the middle ranks or in the shallows.”

Charlie Munger

“The problem is not that we have mental models, it is that we don’t recognize that we have mental models.”

Srikumar Rao

“We all have mental models: the lens through which we see the world that drive our responses to everything we experience. Being aware of your mental models is key to being objective.”

Elizabeth Thornton

“One can train a man so that he has at his disposal a list or repertoire of the possible actions that could be taken under the circumstances…A person who is new at the game does not have immediately at his disposal a set of possible actions to consider, but has to construct them on the spot – a time-consuming and difficult mental task.

The decision maker of experience has at his disposal a checklist of things to watch out for before finally accepting a decision. A large part of the difference between the experienced decision maker and the novice in these situations is not any particular intangible like “judgment” or “intuition.” If one could open the lid, so to speak, and see what was in the head of the experienced decision-maker, one would find that he had at his disposal repertoires of possible actions; that he had checklists of things to think about before he acted; and that he had mechanisms in his mind to evoke these, and bring these to his conscious attention when the situations for decisions arose.

Most of what we do is to get people ready to act in situations of encounter consists of drilling in these lists into them sufficiently deeply so that they will be evoked quickly at the time of the decision.”

Herbert Simon

Article Of Interest: March 1, 2014

Atlantic-March-2014-225x300.jpg (225×300)

I was reading The Atlantic last evening and read this article by Chris Koentges on a goal keeping coach from Finland named Urpo Ylonen and found it fascinating. I have never played soccer and for that matter been interested in soccer but because of my tennis coaching past I delved into the article. Here is the link:

The Puck Stops Here

One of the most interesting parts of the article was how he used cross-training in badminton and eventually wrestling to work on various footwork and other skills in training these young men to be goalies. It made me wonder how effective my cross-training is in developing my mental models in my life. Are there true coaches in mental models that we can learn from in helping us develop our decision-making skills? I know Charles Munger has written extensively about this but are there others that I am not aware?



Quote About Risk From Warren Buffett

“Risk comes from not knowing what you are doing.”

Warren Buffett

Warren Buffett speaking to a group of students...

Warren Buffett speaking to a group of students from the Kansas University School of Business (Photo credit: Wikipedia)

Quote From Warren Buffett About Greed And Envy

“It’s not greed that drives the world, but envy.”

Warren Buffett

Warren Buffett speaking to a group of students...

Warren Buffett speaking to a group of students from the Kansas University School of Business (Photo credit: Wikipedia)