Excellent albeit long read on investing by Warren Buffett's right hand man. A Lesson on Elementary, Worldly Wisdom As It Relates To Investment Management & Business Charles Munger USC Business School 1994 Here is snippet ... The question is what stock picks have you used for your 20 punches. I generally avoid picking stocks and prefer the diversification of mutual funds. Recently though I decided on the first of my twenty punches, PIXR. Pixar has had six straight blockbusters, an almost unheard of accomplishment. They are currently make one film every two years, but are ramping up production after the next film which due in Summer 2006. Their distribution deal with Disney is over after the next film. Their next distribution deal will certainly be more favorable, which in and itself without increased productoin will help their bottomline. What really impresses me about their films is how well done they are. My boy wants to watch them all of the time, which means I get to watch them all the time too. If they can keep their quality and crank out one film per year, they will certainly double their bottomline. I plan on keeping my PIXR stock for five years, so we will see.
Good read. As a hedge fund manager, my investing styles are completely opposite those of good ol Munger. But to say those two boys from Omaha, are modern day genius' would be an understatement. My only dissent I have of those two, is their utter ignorance of technology and technology products. A tip that many professionals such as myself and others( mutual fund managers and hedge fund managers) is that pay close attention to business trends. You can find these clues in most business magazines from time to time. We made a killing shorting Panera Bread, after reading about the upcoming Low-Carb (American Demographics magazine)craze a good year and half before the diet became popular. You don't have to be a genius to make money in the market, you just have to be observant.
My only dissent I have of those two, is their utter ignorance of technology and technology products. I think until just recently that WB did not own a PC, probably thinking that a $1000 was a lot to spend to replace a $50 typewritter that still worked.
