#4 Weekly update
Charlie Munger, Robert Vinall, Terry Smith, Elon Musk and more
Dear Subscribers,
I am making an exception to make a post today instead of the usual Monday post as I wanted to make my tribute to the legendary investor Charlie Munger. Hope you guys will enjoy today post.
Charlie Munger
It saddened me to hear the news that one of the GOAT in investing has passed away at the age of 99. However, his legacy will stay with us for a long long time. My friend, The good investors, has wrote a great tribute on Charlie Munger and I wanted to share it with my subscribers. Click here to read more.
As for me, there is nothing more I can do other than sharing a nice article that talks about Charlie Munger by Forbes: The not so silent partner.
A thank you note to my Investing Hero:
To Charlie Munger,
“The best thing a human being can do is to help another human being know more.”
This quote will serve as the foundation of TQI capital and I hope that my works will continue to benefit to anyone that is interested to learn more about quality investing. It is Charlie Munger that nudged Warren Buffett into quality investing universe and I would want to continue his legacy through my humble blog.
Articles
Mistakes of Omission by Robert Vinall
If any of you don’t know him, he is the founder of RV capital. I think his most controversial trade is Carvana. When the company dropped by 99%, he continues to average down as he believes that he understand the company as well as believing in the management. This show his conviction in the company. (Carvana has 6x from its bottom) There is a good podcast that he explained his thoughts on Carvana by Good investing.
Enough of introduction on him. The main focus will be the content he posted in 2014. The slides could be posted long time ago by Rob Vinall but the ideas remain timeless. He explains that the mistakes of omission is far worst than mistakes of commission as Buffett often alluded to when asked by its fellow investors.
Then, it is follows by how to determine value trap to great business in a simple and yet effective ways. He classified them in Mr. Value trap, Mr. Value stock, Mr. Growth stock, Mr. Good business and Mr. Great business. He ends it with the lessons below which I think it is very important lessons for investors aspire to be high quality investors. Be sure to go through his slides.
Estimated reading time: 5 minutes
Terry Smith (Fundsmith Equity): "Interest rates? Companies are our focus" by Fundsmith
I cannot emphasize enough that my investment style is highly influenced by Terry Smith. His most famous mantra: Buy high quality companies, don’t overpay and do nothing truly speaks to my heart. We should keep investing as simple as possible and there will be more posts on Terry smith and the lessons from him.
In the article above, he talks about Nvidia, Tesla, IDEXX, etc and what is his rationale for investing or not investing in them. It is always great to listen to his thesis and why investing should be kept easy and focus on company fundamental instead of focusing on interest rate direction which we most likely has no ability to focus.
“There are only two types of people: those who can’t market time, and those who don’t know they can’t market time.” – Terry Smith (Fundsmith)
Estimated reading time: 8 minutes
Podcast
I am an avid listener to Business breakdown, a podcast that analyze companies. Wex: Fleet cards was the latest episode that I listen to.
Most of us might not know what is a fleet card but basically, it is a business that offer trucking businesses special credit cards which help secure advantaged rates on fuel among many other things. It is similar to a Visa or Mastercard but it exists in the trucking world and expanded into other areas. It is a surprisingly profitable business and hope you guys enjoy their content.
MBI, another great professional stock analyst also wrote about its competitors, FleetCor: Far from Fleeting recently and you could use these as resources for further research. (It is paywalled by MBI)
Estimated listening time: 1 hours
Book
Elon musk by Walter Isaacson
This book probably no need more introduction as Elon Musk is probably one of the most known person on Earth with his companies like Tesla, Space-x, etc. Walter Isaacson did a very good jobs in telling the stories on Elon Musk without being bias. I would say that his story is super interesting and probably one of the craziest among the entrepreneurs. Building cars in parking lot to meet deadline? Who would have thoughts that.
It is a book that I highly recommend to my subscribers. It could be quite lengthy but it is certainly something that is worth spending time.
Estimated reading time: 40 hours
Disclosure: I am not affiliated to any of the authors or writers and didn’t receive any monetary compensation. It is merely for education purpose and my passion to investing. Cheers!!!