Welcome to the Sunday Briefing newsletter where I share some of the interesting lessons in life, business, and investing that I’ve come across during the week.
Latest on Junto
My Research Process for Picking Stocks. Many investors, when asked to define their research process, say something along the line of,
Oh, I just read through the SEC filings, earnings transcripts, listen to other investors, and so forth, and then I just try to make sense of it. I think aspiring analysts deserve a little more than that.
What I’ve been reading
I make no excuses or apologies for changing my mind. The world around me changes, for one thing, but also I am continuously learning. I have never finished my education and probably never will…. I’m always telling myself, “I must sit down and explain why I said this, and why I was wrong.”
Based on past history, if you invested in the stock market for 1 year, your chance of losing money would be greater than 1 in 4. But if you invested for 10 years, that number would drop to about 1 in 25—and after 20 years, to zero.
However smart you are, there is someone who is smarter than you. And if there’s someone smarter than you are, it doesn’t make sense to work on the hardest possible problems and to try to change the world – it’s the smartest person’s job.
Quote of the week
Ralph Waldo Emerson on persistence.
“A man is what he thinks about all day long.”
You get a competitive advantage by doing the stuff that others find boring.
Have a great coming week,