Mistakes are part of investing. There’s no way around it. So you might as well expect mistakes eventually, learn from it, and move forward. Just make sure that those mistakes don’t set you back so much that you can’t move forward.

Being properly diversified is one way to do that. In other words, you can make a few mistakes but your other investments make up for it and more.

Margin of safety is another. Leaving room for error goes a long way in reducing losses.

After the this year’s Daily Journal Annual meeting, Charlie Munger stuck around for more questions (a transcript of that Q&A session in the Library). He was asked how he handles learning from mistakes, which led to another question on Dexter Shoes. Here’s what he said: Continue Reading…

I’m in the middle of transcribing Charlie Munger’s unofficial Q&A session after the recent DJCO meeting. He was kind enough to stick around afterward for pictures and questions and someone was nice enough to record some of it.

Charlie shared a lot of interesting thoughts and I wanted to quickly share a bit of it here. The transcript will be available in the Library once I finish.

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Question: Charlie, do you think businesses are becoming more fragile with technology and transparency? Continue Reading…