The key to being fantastic at your chosen field is to reach what Charlie Munger called "testable fluency" in the basics so that you are able to perform the higher ideas like a meastro. This concept is simple: Mozart was able to compose so brilliantly because he could play almost anything by sight or ear. Likewise, Charles Dickens wouldn't have been able to write Oliver Twist had he not had a firm grasp of the English language. Higher levels of performance are only available to those who have … [Read more...]

The older, and more experienced, I get, the more convinced I become that financial success and making money comes easier if you spend your time doing what you love.  The reason is startlingly simple: If you are passionate about the process of your job, and take pride in doing excellent work, you are likely to stick with it longer and more intensely than your competitors. The trick is, you need to figure out how to monetize your effort.  A lot of people sit around writing snarky comments but … [Read more...]

In 1977, Berkshire Hathaway invested nearly 25% of its net worth into Buffalo Evening News, a newspaper in upstate New York. Buffett and Munger paid $32.5 million for the company, which had only earned $1.7 million pre-tax in 1976. The theory was the paper could launch a Sunday edition and increase profits substantially. A judge blocked the move on anti-trust grounds and put off plans for 5 years. The Buffalo News began running losses and went $4.6 million into the red in 1979 alone. … [Read more...]