How do you know if you are on the right path and that you will satisfied with your choices?
[mainbodyad]Close your eyes for a moment. Imagine that for the next ten years, you continue to do exactly what you do now. You eat the same foods, dress the same way, go to the same job, spend and save at the same rates; you continue on the path that you have set. Now, picture your house, your car, your family, your bank accounts, your investments, and your schedule.
Now, ask yourself:
Are you satisfied with what you see?
Are you happy with how you spend your time?
Is there anything you would change?
If you can’t answer those three questions with enthusiastic absolutes, you need to change something. With respect to the things that are within your control, where you are, in this moment, is the sum culmination of the decisions you have made up until this point. That means that where you are in 10 years will be determined by how you allocate your time and money today. Make sure you are investing in the things that will have the payoff you desire.
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Frat Man
April 13, 2011
I like your recent inclusion of short posts that burst with wisdom--the best personal finance/investment websites discuss life philosophy far more than investments.
Two quick questions to add to the queue--
1. I never understand why/how some mutual funds sell at a discount to their net asset value. That seems goofy to me. Likewise, Berkshire Class B shares occasionally sell to a discount of their proportional relationship to the Class A shares. I never understood why this would happen, and why someone wouldn't automatically pounce on such opportunities--aren't they no-brainers?
2. This might be a bit more personal, but one of the things that I've always liked about Munger is that he had no formal education in his business background--i.e. he wasn't a business/econ major, nor took classes. I'm in that same boat. I'm not an econ or business major, but I tutor some of the kids in upper-level business courses and I'm willing to bet that I probably read more about finance and try to digest it than just about anyone my age (and you probably thought the same thing when you were in college). Anyway, it's not like I can show up at Goldman or JP Morgan or whatever and get a job from them as an English/History major, even though I'd probably be the only interviewee who could quote Seth Klarman's Margin of Safety verbatim. Unfortunately, I wouldn't have the resume to get me to that point. So what would you say is the best way for me to enter the world of finance? I seem inclined to take the Munger approach of going into law, using the excess capital to buy small companies and prove myself, and being my own boss from there. Is there a more direct route? If you were an English major who had a great command of finance, how would you convey that to the big banks or members of the finance industry?
How do you know if you are on the right path and that you will satisfied with your choices?
Frat Man
April 13, 2011
I like your recent inclusion of short posts that burst with wisdom--the best personal finance/investment websites discuss life philosophy far more than investments.
Two quick questions to add to the queue--
1. I never understand why/how some mutual funds sell at a discount to their net asset value. That seems goofy to me. Likewise, Berkshire Class B shares occasionally sell to a discount of their proportional relationship to the Class A shares. I never understood why this would happen, and why someone wouldn't automatically pounce on such opportunities--aren't they no-brainers?
2. This might be a bit more personal, but one of the things that I've always liked about Munger is that he had no formal education in his business background--i.e. he wasn't a business/econ major, nor took classes. I'm in that same boat. I'm not an econ or business major, but I tutor some of the kids in upper-level business courses and I'm willing to bet that I probably read more about finance and try to digest it than just about anyone my age (and you probably thought the same thing when you were in college). Anyway, it's not like I can show up at Goldman or JP Morgan or whatever and get a job from them as an English/History major, even though I'd probably be the only interviewee who could quote Seth Klarman's Margin of Safety verbatim. Unfortunately, I wouldn't have the resume to get me to that point. So what would you say is the best way for me to enter the world of finance? I seem inclined to take the Munger approach of going into law, using the excess capital to buy small companies and prove myself, and being my own boss from there. Is there a more direct route? If you were an English major who had a great command of finance, how would you convey that to the big banks or members of the finance industry?