Security Error | Columbia Business School

everybody agrees that stores have value in an online world. Even if you make no money in a store, it lowers your online cost of acquisition. This is the reason all these DTC brands are opening stores. Stores have value.

To this day, the Peter Lynch process where if you like the product, you're going to like the stock – that is powerful.

My baseline assumption is that I'm wrong, which makes it easier to change my mind.

Warren Buffett has said he doesn't do due diligence. This was a statement about Precision Castparts which is one of his largest acquisitions ever. And everybody just ignored that comment, but it was a profound comment. And what he meant by it was that he didn't need to do due diligence. He had been reading every 10-K published by Precision Castpart... See more

Expose yourself to as many different philosophies and processes as possible because you have got to find one that fits your own emotional make up and that helps you be rational when you’re wrong. And do not be a philosopher. Do not be a high priest of investment religion. Be a practitioner.

Understanding the meta is part of your job and integrating that with these timeless principles from Buffett is important.

Will Danoff taught me the value of being optimistic and open-minded while also playing in the present. The ability to balance conviction and flexibility is hard. It’s one of the things that makes investing an art. And it is the reason why you must find a philosophy that suits your temperament so that you can find the right balance between the two.

Yeah, so the meta, or the game within the game, is always changing in investing. 20 years ago in the NBA, three pointers were undervalued, statistically. Going for it on fourth down was undervalued in the NFL. And I would say that 20 years ago, understanding ROIC was undervalued in the market.

If I need to do a deep dive, we are not going to invest. You can think of my investible universe as the companies where I don't need to do deep dives because I have been doing due diligence on them for many years or even several decades.