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1. COPY THE BEST IDEAS
A wise man ought always to follow the paths beaten by great men and to imitate those who have been supreme so that if his ability does not equal theirs, at least he will savor it.
βNiccolΓ² Machiavelli
2. READ
When Pabrai discovers a subject that fascinates him, he attacks it with obsessive fervor. In Buffettβs case, the available resources seemed limitless, including decades of letters to Berkshireβs shareholders and seminal books such as Roger Lowensteinβs Buffett: The Making of an American Capitalist. Pabrai devoured it all. He also began to make a pilgrimage each year to Omaha for Berkshireβs annual meeting, showing up without fail for more than twenty years.
Eventually, Pabrai develops a personal relationship with Buffett. Through Buffett, heβd also become friends with Munger, who invites him for meals at his home in Los Angeles and games of the bridge at his club. But in those early days, Pabraiβs knowledge came entirely from reading. And the more he read, the more convinced he became that Buffett, with Mungerβs help, had laid out βthe laws of investing,β which are as βfundamental as the laws of physics.β
3. PATIENCE
βThe number one skill in investing is patienceβextreme patience.β Prabai
4. SAY NO TO MANY THINGS, AND SAY YES TO A FEW THAT YOU CAN TRULY SUCCEED IN
βThe difference between successful people and really successful people is that really successful people say no to almost everything.β Warren Buffett. Pabrai once said βOn my gravestone, I want them to write, βHe loved to play games, especially games he knew he could win.β
5. BE DIFFERENT
It is impossible to produce superior performance unless you do something different from the majority.
βSir John Templeton
6. BEWARE OF YOUR IGNORANCE
You may be well-read, but there are areas that you are ignorant about. The deeper you go, the narrower you become. Remain conscious of your ignorance. Remain conscious of the areas you have no expertise. You donβt know everything.
7. YOU NEED A COMBINATION TO SUCCEED
βLook, luck is not enough. But equally, intelligence is not enough, hard work is not enough, and perseverance is not necessarily enough. You need some combination of all four. We all know intelligent people who worked hard but didnβt get lucky.β
8. AVOID HERD MINDSET
βIndividually, weβre smart,β says Wojcik. βCollectively, weβre stupid.β
9. BE LIKE WATER
βTo be strong, you have to be like water: if there are no obstacles, it flows; if there is an obstacle, it stops; if a dam is broken, then it flows further; if a vessel is square, then it has a square form; if a vessel is round, then it has a round form. Because it is so soft and flexible, it is the most necessary and the strongest thing.β Lao-Tzu
10. SIMPLIFY
Our life is frittered away by detail.β¦ Simplify, simplify.
βHenry David Thoreau
I hope you find these lessons helpful.
You can visit our page Diversified Investment Plan for more book recommendations and reviews.
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