Thursday, 16 May 2013

The importance of reading to get smarter

picture borrowed from an aussie paper
Just found this really nice article on a blog I hadn't previously heard of called Farnam Street. It's an easy read so won't take up too much time in your life, but has quite a few salient points.

The Buffett Formula — How To Get Smarter

My take from it:

- Nothing is easy in life. You don't get to become some of the wealthiest people in the world without a lot of work.
- Reading and continuing to read is the source of their knowledge. Munger and Buffett don't have supernatural investing powers, they just have a capacity to read vast amounts to gain knowledge.
- Read the facts not the opinions of others on those facts.
- Find the time to read even if it means sacrificing something that you gain pleasure from or might otherwise derive some greater short term value from. It's the long term that counts.
- Using that knowledge wisely is what separates them from others.
- Surround yourself with smart people