The Munger Way

Dear Reader, I had met my thesis supervising professor today. He is professor for operations research and scientific management and he supervises and helps me with my thesis about inner city routing of fire trucks with real time traffic information. (My childhood dreams come true! Now I am playing with real fire trucks ;-) We talked about the structure of my thesis and the general problem of fast feedback systems (traffic systems, financial markets) versus slow feedback systems (behaviour of tankers and cargo ships). Slow feedback systems could be modelled stochastically. New information is perceived (a boat will cross the route), the probabilities of scenarios will be adjusted (evasion of the boat, no route change, ...) and than the problem is optimized with the optimal solution as output. In fast feedback systems new information arrives faster than the solution of the optimization is calculated. I would say, "Hey, I have money, lets buy some more computers!". Bu I am w...

Dear reader, I watched a seminar of a communication coach today. He said a very impressive thing "If you learn 1% new, teach it". It helps you to discuss your newly gathered information and to internalize the info. Mr Market is for me like a screaming retailer who tries to sell his goods. Since I heard the idea, I do not have any need to look into my portfolio and the numbers are to some degree arbritary. Value investing is hard work and most of the time boring. Now I think of investing in investment gurus rather than managing my own portfolio. On the other hand I learned so much about business models and personal finance because I have gone deep in the matter of value investing and I have a feeling of missing something if I quit value investing. But is value investing the thing I wanna do now? Does is provide more fun than building my own company or developing my software? no. if I am looking into the stock screeners I am not satisfied and thinking how I could improve it....