We're working on a watchlist for you - an investment method proposed by Charlie Munger
Apr 11, 2021As you might have seen on Twitter we've shared some glimpses of how we are doing in the stock market. We haven't shared much on the blog yet, but we will try to get more personal in the future.
A few of you might have seen one of the last tweets we did about the long term investment results we have made. We are two buddies who share the same ideas when it comes to investing well long term, and we manage our own portfolios separately right now. They are both doing pretty well.
Our own portfolios had this track record over the last four and five years. You can see the results in the pictures below. The yellow graph is the Dow Jones World Index, while the top graph is our own result, which has outperformed the market. The compounded annual return the last five years is a bit more than 22% at the moment.
Many investors may show you a month or a year of their results, but few show that they are beating the market over longer time periods. And that's of course because it's pretty hard to do. But we've been lucky when it comes to picking stocks.
This is not to brag, but to show you that the ideas we tell you about work well for us, and we believe we can teach you to get similar results, if you have the following. You need to have the right temperament when it comes to investing, and it is wise to follow the ideas of the best investors out there.
In our latest free eBook we shared a few ideas that we believe are helpful, as well as some books and great investors worth studying.
You can get your eBook by subscribing to us. You'll find a link on the main page of our website.
One of the best ideas we will share with you here is that it's far better to invest in wonderful companies at fair prices than in fair companies at wonderful prices. In order to do that it helps to have a list of great and wonderful companies that you have already identified. And if you monitor a list of them you can track when one of the companies is priced fairly. If you are going to do well investing another good idea is to learn to be patient. Really great stocks are usually priced quite high and even expensive. By paying too much you can turn a great stock into a lousy investment.
Right now we are working on setting up a service for you which will give you a watchlist of companies we believe are very good candidates for being wonderful companies. And we'll give you tools that can help you monitor a list of them. In addition we'll give you educational content mostly on a monthly basis that will update you with company research. That can help you to know the companies on the watchlist better and be prepared to do your own research and investing later.
We have followed this method ourselves, and we've gotten pretty good results by staying disciplined and following our list of wonderful companies.
Charlie Munger has the following to say about the idea:
"One person said to me, 'I have a list of 300 potentially attractive stocks, and I constantly watch them, waiting for just one of them to become cheap enough to buy.' Well, that's a reasonable thing to do. But how many people have that kind of discipline? Not one in 100."
If your interested in getting a subscription offer when the watchlist will be published, feel free to sign up on our site here!
We look forward to get the service up and running!