"Warren, if people weren't so often wrong, we wouldn't be so rich." Charlie Munger I've always wanted to watch the whole Berkshire annual meeting. This year, I'm finally doing it, and I'm sharing everything I learned with you guys! …
I've always wanted to watch the whole Berkshire annual meeting. This year, I'm finally doing it, and I'm sharing everything I learned with you guys!
This will be a 5 part series going throughout this week. Let's get started!
Making Mistakes
Sitting on that stage as the greatest investor of all time, Warren seems like he never makes any mistakes. But as he explains, nothing could be further from the truth:
"Sometimes we've done things that were big mistakes and we never get close to fatal mistakes and every now and then we do something that really works."
The success we see is his good decisions compounding. Any mistakes he's made, few but Warren himself remember.
"I've made mistakes occasionally, but they filtered out over time. We learn."
In investing in startups and in life in general, I will always make mistakes. Some will be big.
But so long as we don't risk ruin and we keep doing our best, we can succeed beyond what we ever thought possible.
Keeping At It
Warren has been investing since he was 11. Today he is 93.
When I ask myself "Why is Warren so good?" that's a big part of the answer. He's kept at it and learned for over 80 years!
If anyone does anything for 82 years, they're bound to get pretty good at it. Warren is smarter than most, but even for an average person, that much experience and time is bound to bear fruit.
"…the math of compounding and a long runway have done wonders."
I've been investing in startups for just over 3 years now. I'm no Bill Gurley, but I know a lot more than I did when I started.
Once that clock hits 10 years, 20 or more, imagine how much I'll know! I just have to keep at it.
Ignoring the Markets
Berkshire owns huge positions in a variety of stocks, including Apple, American Express and Coke.
Those stocks can fluctuate wildly. Warren ignores those fluctuations, saying "…we pay no attention to those at Berkshire."
Venture capital fluctuates more than just about anything.
In 2021, companies got valued at $1 billion on $10 million a year in revenue. Today, I've seen great companies growing fast raise at just 2 or 3 times revenue in some cases.
Are those businesses suddenly garbage? No.
They're still making customers happy and making money. So I'm more excited about backing them now, not less!
Warren keeps a laser focus on what's going on in the underlying business. If I do the same, I can succeed.
Customers, product, team…nothing else matters.
Wrap-Up
I'm so grateful for Warren and Charlie! I've learned so much from them.
They never had to share their wisdom. They're worth billions and they could've just holed up in their offices and kept making more, ignoring the public.
But I'm so happy they share what they've learned with us. Their lessons on persevering through mistakes and focusing on what matters help me every day.
I hope they help you too!
Come back tomorrow for part two!
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