Beware of SBC, should be removed from FCF.
I wish! All I have is just 46 inch 4K monitor!
However, this is nice setup, looks cool !!
Just put 4 of your 46" monitors vertically and you are done.
The lure of getting rich fast versus the near certainty of getting rich slow.
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围棋 Go. Two distinct styles (grab corners early or form a huge encirclement). Pros and Cons are similar to trading and investing.
Investing rules 
Main reason is 100% all in all the time.
Making 100% on 1% position is identical to 1% on portfolio.
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Doesn’t Buffet have more years of compounding working for him? Time is probably the most important variable. Also, Buffet is famous for how much cash he keeps. He’s nowhere close to all-in all the time.
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Cash is from insurance premium and sub companies.
They could invest it and choose not to invest, because they can’t find attractive valuations.
Is impossible to be 100% invested since cash keeps pouring in. Because of the huge sum, DRIP doesn’t work well.
You realize that would go 100% against what Buffet does. He holds cash and waits for a discount. Then he buys. He’s timing the market. He just does it with a long-term perspective. If being 100% invested was most important, then he’d never let accumulate a huge cash position. He’s willing to wait years for the right valuation.
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As I said, is impossible to be 100% invested because of the huge sum of money involved and regular huge cash inflows. So technically is not 100%. But is 100% invested in all intents and purposes.
WB talks one thing but does another. The real message he’s conveying is that because you are never as good as him you should stay in your lane and don’t do what he’s doing.
He says just invest in S&P and not try to beat the market. He does the opposite. He says hold long term and never sells but most of his positions he only holds short term. Latest example is TSMC. He says don’t time the market but he’s holding billions of cash waiting for opportunities. He says so many times.
In order to go 100% invest and win, we need to have 100% perfect timing as market is always fluctuation with “Mean reversion Concept” and also momentum based on fundamentals.
It is practically possible to 100% invest with DRIP, but the investor growth (or their AUM) will unlikely grow faster than indexes, winning chances are less, esp after years pass by. John Kelly, AT&T engineer, proved a theory in 1956 (IIRC) “Kelly Criterion” for big funds to increase the chances of winning. Almost all funds are following such rules.
When AUM is high multi-billions, funds struggle to grow as they need to properly develop portfolio allocation and balance taxation with growth and drawdown issues. Lot of analysis and timings are important for winning exceptional growth.
I think you have read his statements in news papers, not watched him in youtube or his videos. Watch his videos, he will justify his statements.
Invest in S&P => He says this is for common retailer (like his wife) who does not have any knowledge about stocks or market, but not for experts.
For experts or someone who is good at analysing fundamentals, he says read “Intelligent Investor” and invest in individual stocks than S&P.
Regarding timings, he is super good on timings by his long years of experience, but he is methodical.
He is actually aiming for long holds, but when he foresees growth or future growth issues, he is flexible enough to sell immediately. To be a right investor, someone should not be adament, but flexible enough to change the course. Otherwise, he can not grow as that will result into disaster.
This is kind of stop loss concept, he did that for airlines and ORCL too.
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Willing to admit you are wrong and change course is the hallmark of a good investor and a good trader. Is a must.
The goal is to grow your wealth steadily… faster than inflation. Historically, S&P grows about 1-2% (if memory didn’t fail me) faster than inflation.
Technically, nobody is able to do 100% invested, is an intent.
Intent of BRK cash is not 100% for investing… some are for insurance + re-insurance claims.
Way off…historical inflation adjusted i.e. ‘real’ return of S&P is more like 7%.
Sound very good… thought 7-11% is nominal.
Nominal is 10 or 11% including dividends but before taxes or inflation.
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Normally, The insurance GEICO (and others) will have its own profit, loss, claims and reserve separately.
BRK has almost 336 holding companies and most of them gushing the cash in flow as they are holding very long.
The cash 128B is BRK owned and mainly to absorb any new takeovers or future investments, most of them held at Treasuries.
All big hedge funds, for operational efficiency purpose, must have cash 20%-30% or hedges. BRK is too conservative, they normally keep cash reserve.
Like he holds all BAC bought in 2008. BRK cost was 5% and now yearly they get 18% dividend returns (similar to your AAPL). They do not need to sell it, but they get high cash flow in for holding period.
Most of the challenges for big funds are coming from taxes or change in tax laws. BRK or similar companies, even if they are not selling, they need to pay taxes over investment growth (obama period tax laws changed like this)!