The Investment Scientist

A client of mine came to me very worried because at this time last year, his account was $1.35mm and now it’s only $1.19mm. That’s a “loss” of nearly 12% in one year. “At this rate, am I gonna lose everything in 8 years?” he asked. 

I showed him a number buried deep in his statement, and he immediately regained confidence that he is not losing, he is, in fact, gaining. What number did I show him? Just stop reading for a minute to think about that. After one minute you can read on.

….

Here are your answers to the survey question: “What You Learn The Most From Warren Buffett and Charlie Munger?” Most people pick “They are patient” as their top take-away, followed by “They are value-oriented”.

If I had been asked the same question ten years ago, I would have picked these two as well. However, today I want to discuss the point that came in third, that they stay alive and sharp.