Subject: Re: The Berkshire Problem


"These days, I'm much more interested in a screen that indicates outperformance of (say) 2-4%/year with 30-60 stocks than one that teases you with seeming outperformance of 10%/year on only 4-10 stocks then falls flat."

Mungofitch


"But to make money they didn't have and didn't need, they risked what they did have and did need. That is foolish. That is just plain foolish."

Buffett


I'm not suggesting that Jim ever loaded up leverage like the LTCM folks, but to me there is some thematic echo.
It's very difficult to shift gears in the midst of market success and dial back risk. Exogenous events don't post departure times like the Eurostar. Go out and celebrate the wins periodically, but get back home unassisted.

My working life is coming to an end - gratefully. I won't have 10 years of wages to repair investing mistakes.
If you have a reasonable capital base, you've got runners in scoring position, a base hit or a walk usually scores a run. I have no business swinging for the fences or signaling for the hit & run.

- Cmore