Charlie Munger said that reading was the main reason for his success in life.

As a generalist, he reads about all kinds of topics.

I’m sure a List of Charlie Munger’s Book Recommendations is among the top 1% of lists you can get.

So here it is👇🏼

Peter Cundill might be the least known Superinvestor of the last century.

The Cundill Value Fund he managed achieved a little over 15% compounded return over 33 years.

This is more than 100x on your initial investment.

This is his Investment Philosophy👇🏼

1. A Whole Lot Of Patience

Cundill’s most important trait is patience.

Great ideas often come early to you.

Reality is complex and things take time to play out.

The worst mistakes are made when investors decide to sell these great ideas because they fear opportunity costs.

2. Always Change A Winning Game

Never change a running system, but always change the game.

Nothing wins forever.

Create an investing framework and stick with it but change where you apply it.

Things that outperformed will eventually stop doing so and the other way around.

3. Be International

Great opportunities exist in all kinds of markets.

As discussed above, changing where you play can be important to stay on top.

One way to change your playing field is to expand into different countries.

4. Great Poets Borrow

Decades ago, Cundill already emphasized on the importance of what many call “cloning” today.

To find investment ideas, looking at what other successful investors own can be helpful.

Ideally, you build a network of investors you gather ideas from.

“How do you know?”
You never know!

In investing, you have to act on incomplete knowledge.

I came across a great article by @honam lately.

In it, he discusses his decision-making under the condition of an unknowable future.

I think the learnings are worth sharing 👇🏼

“The truth is, in the beginning, we never knew how things would turn out.” - Ho Nam

When you analyze a company, you (hopefully) come up with an investment thesis at the end.

But it’s nothing more than that - a thesis.
The future is yet unwritten thus unknown.

Sequoia’s Mike Moritz has beautifully described an initial investment as a “giant step into the unknown.”

That’s why your work isn’t done after the decision to buy.
Investing is a journey.

You have to reevaluate your investments constantly.

Ho Nam’s article offers four questions (we’ll discuss three) that can help you do that and decide whether you should hold, sell, or double down.

Although they’re primarily VC (Venture Capital) focused, I believe we can all learn something from them.

1. Does the company generate cash?

Especially in the VC world, but also with bigger and more established companies, it’s not a given companies make money.

There’s a tendency to overpay for vision and underpay for value at the moment.

But Cash-Flow is a form of safety.

There are only a handful of investors with high-teen performance over decades.

Walter Schloss is one of them.

He achieved a 20% annualized return over 47 years.

$10,000 would've turned into over $50 million.

Here's how he did that👇🏼

1. Little Background

Walter Schloss learned investing from Benjamin Graham, just like Buffett.

Buffett also mentioned Schloss in many letters and in his article on the Superinvestors of Graham and Doddsville.

Accordingly, Schloss followed a value investing philosophy.

However, like every great investor, he also did things differently than Buffett or other peers.

Today, we will analyze the most critical points and the things that differentiate Schloss.

In the end, there’ll also be an Investing Checklist by him and his son.

2. Correctness of Judgement

More important than the predictions of analysts or experts is your own judgment.

And it’s your responsibility to make sure it’s correct.

Most people fail to test their judgment and decisions regularly.

How you approach upcoming news on your investments is critical for a correct judgment.

Being skeptical is much more helpful than trying to fit news into your thesis.

You shouldn’t need to convince yourself of an investment.

It should be convincing because of the facts.

Li Lu is a well-known Superinvestor who has achieved a compounded annual return of about 30% since 1998.

He is also known for managing the money of his good friend Charlie Munger.

Today, he turns 56 years old, and on this occasion, here is some of his timeless wisdom👇🏼

1. Why Value Investing Works

The market isn’t created for value investors.

It is built in a way that increases the urge to speculate.

That’s why businesses are so often misprized in the short term.

Value investors can benefit from this circumstance.

2. Understand Who You Are

You’ll be more interested in some industries/topics than in others.

And in investing, you can choose in what industries you’ll look for opportunities.

Investors should use this advantage and be sure about their circle of competence.

3. Be a Journalist

Being an investor is a lot like being a research journalist.

You have to dig into the company on a level that journalists do when they research their stories.

You also need to clearly articulate your thesis and research and bring it to paper.

4. Find the Truth

A journalist also has to find the truth before he publishes a story.

Same goes for an investor. It could be fatal if he makes a decision before he knows “the truth” about a company.

Thus, he has to avoid all sorts of biases and misleading influences.

7 Books that Changed My Life:

- Winning
- Atomic Habits
- The Behavior Gap
- The Millionaire Mind
- How to Become a Rainmaker
- The Subtle Art of Not Giving a F*ck
- Mindset: The New Psychology of Success

What books changed your life?

How to spend 80% less time in the gym and get BETTER results for building muscle than you're getting now (SERIOUSLY)

Backed up by science.

Thread 👇

First mistake:

Doing too many exercises.

All you need is:

- A squat or similar movement
- A hip hinge
- Vertical push
- Vertical pull
- Horizontal push
- Horizontal pull

Add in some calf work and ab work.

You don't need multiple exercises for each muscle group.

Some people do 3 or 4 different exercises for each of the above, e.g. a flat bench press, a decline bench press, a pushup, an incline dumbbell press... this is a waste of time.

All of those are using the same muscles and fall into the "horizontal pull" category.

All you need to do is pick ONE for each category and lift to failure with good form.

Reaching failure (or close) creates the stimulus for adaptation.

Adding more work does not increase this stimulus, it just adds more muscle damage that you've got to recover from.

The other mistake is that people do too many sets.

You've all seen the bros in the gym on chest day...

HAMMERING the chest with 5 sets of flat bench press, 5 sets of incline, 3 sets of decline, 5 sets of flyes...

This is just cutting into recovery and making results worse.

If you want to give yourself a personal MBA, read these 10 books:

Zero to One
by Peter Thiel

Subject: Strategy and Positioning

Lessons:

• Last can be first
• Rivalry causes us to copy the past
• Progress comes from monopoly, not competition

Expert Secrets
by Russel Brunson

Subject: Marketing

Lessons:

• Maintain absolute certainty
• The riches are in the niches
• Convince with emotion first, then logic

$100M Offers
by Alex Hormozi

Subject: Sales

Lessons:

• Create grand slam offers
• Find the starving crowd
• The fundamental equation of value

Deep Work
by Cal Newport

Subject: Productivity

Lessons:

• Embrace boredom
• Create daily rituals
• Find your work-style
• Treat work like a craft

21 lessons learned in 2021:

Engineered Serendipity

I believe that some of what we call "luck" is actually the macro result of 1,000s of micro actions.

Your daily habits can put you in a position where "luck" is more likely to strike.

Increase your serendipity surface area.

Engineer your own serendipity.

Pessimists Sound Smart, Optimists Get Rich

Pessimists look at the future and see the doors that are closed.

Optimists look at the future and see the doors that are open—and probably kick down the closed doors, too.

Surround yourself with optimists. The future is bright.

The Exponential Growth Challenge

Human brains cannot fathom the insane power of exponential growth. We consistently underestimate its impact.

When you're on an exponential growth curve—stop trying to set specific goals.

Strap in, keep your head back, and enjoy the ride.

Work Like a Lion

Most people are not wired to work 9-5.

Modern work culture is a remnant of the Industrial Age—long periods of steady, monotonous work.

If your goal is to do inspired, creative work, you have to work like a lion.

Sprint when inspired. Rest. Repeat.