Some of you dont even have ten And so youre going to to stop being an ignorant

Some of you dont even have ten and so youre going to

This preview shows page 14 - 17 out of 263 pages.

years. Some of you don’t even have ten. And so you’re going to have to stop being an ignorant investor and start becoming a good investor. GET READY TO STAND UP The process starts with understanding what stockpiling means for you, and then understanding why you must stockpile stocks, or pay a huge price in your life and the lives of the people you love. Prepare to be horrified by your potential fate if you don’t take what I teach seriously, but also prepare to be inspired by how easy it really is to get rich. * By “consistent” I mean they were compounding at 15 percent over ten years, eight years, five years, and three years—not just an average of 15 percent over that ten-year period. The reason consistency is important is that a lucky manager could have a huge year and bring up his average while most years he’s getting killed. By applying a consistency requirement, you are left with the rare manager who can average that return every three years or so, consistently for long periods of time.
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T HOW the WEALTHY USE DOWN to GO UP There are risks and costs to a program of action. But they are far less than the long-range risks and costs of comfortable inaction . —J OHN F. K ENNEDY he best investment strategy I know is so counterintuitive, so shockingly upside down, such a crazy way of thinking about investing that hardly anyone who uses it wants to even try to explain it. It’s not at all hard to do , but it is hard to explain. It just sounds so … impossible. But smart investors do it all the time and, man, does it work! I mean it really works. It’s an “I can do whatever I want the rest of my life” kind of works. It works so well, it’s the secret to the investing success of the best and richest investors in the world. Seriously. I know that sounds like hype, but honestly it’s impossible to overstate the effectiveness of this strategy. It really is the basis of the biggest fortunes in the world, including those of quite a number of Forbes’s World’s Billionaires list. For example, #3 is Carlos Slim Helu, the Mexican telecom entrepreneur who is worth $35 billion and is currently buying into cheap media, energy, and retail assets, including the New York Times , using this strategy. Lakshmi Mittal, #8, of India, created a $19 billion fortune and now runs the world’s largest steel company, ArcelorMittal. He built ArcelorMittal using this strategy in Eastern Europe in the 1990s after the Berlin Wall came down. Number 15 is Bernard Arnault of France, who built a $16 billion fortune by acquiring
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Christian Dior with this strategy. Number 16 on the World’s Billionaires list is Li Ka-shing of China, who made $16 billion acquiring energy, banking, and utility companies with this strategy. Charles Koch and David Koch are ranked #19 with $14 billion each, which they got by using this strategy to build Koch Industries—one of the largest, privately held corporations in the United States. Michael Otto of Germany is ranked #23 and is using this strategy to take advantage of weak markets in the United States to buy up shopping centers in America. Donald Bren is #26. He used it to become the sole owner of the Irvine Company and
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  • Spring '20
  • Warren Buffett

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