![]() ![]() People want complexity in their investing lives and the simplest way to be a good investor is to keep things simple. The issue is that since they talk about stuff that is so simple, people do not really adhere to that. So they have been saying the same things for the last 30, 40, 50 years. Someone asked Charlie about advice you would give for estate planning and he said, just hold that goddamn stock. That is what Warren and Charlie are all about right. In fact they jokingly said we do not understand the iPhone, but we understand the consumer behaviour and we will continue to stick by with all our investments. They have repeated time and again that one should stay the course. That is one big takeaway for me as far as this point is concerned about investing becoming tougher for investors as a whole. I remember Charlie saying that if you want to really do well as an investor going forward, you have to be more rational, you have to be less dumb. The only edge that remains is behavioural. As far as investing is concerned, the average IQ for investors has increased as people have become smarter and wiser as far as investing is concerned. So what differentiates the winner is the amount of luck that you have in the game. I am sure if you look at the nature of any games including investing or cricket, if you look at the one-day international cricket, on an average, the average score for the team batting first has increased right. I wonder why he is saying that? In India, there is no problem as such… So the dollar, as Buffet says, would still remain to be a global currency and a reserve currency for some time.Ĭharlie also says that value investors be prepared for low returns. As of now, people have talked about making the Indian rupee strong and probably taking it to a place where it becomes a global currency of choice, but I think we are still far away from that. Of course, given the fact that the US economy has been through its own bad times and good times, there have been noises about creating an alternative currency but there is no alternative currency. There has been noises around changing the world reserve currency and there have been issues with dollar denominated kind of stuff over the years. History has told us that alternates always get created when there are imbalances in the world and right now the American dollar is going through a big imbalance. But Buffett is clearly saying that it is impossible because there is no other alternative. SUBMIT The other takeaway for all of us is that while there seems to be this chatter that the reserve currency nature of the dollar would change. ![]()
0 Comments
Leave a Reply. |