73 Reds

Mistakes? In my younger days far too many mistakes to even recall, LOL. Tried all sorts of techniques, market timing, options & derivatives, newsletters, etc... Then I met someone who had lived in Omaha and who had actually met Buffett, sometime in the late 1970s. Opened up a whole new way of thinking, which wasn't hard because I lost money as fast as making it every other way. The irony is, buying the first share of Berkshire was not easy - in those days brokers charged a 5% commission on odd lot trades and I couldn't afford to buy more than a share or two at a time so in the back of my mind was always the notion that the share price would have to go up by 5% just to get even. It took a while for such thoughts to fade. Today I mostly invest in real estate and add to existing stock positions when they look inexpensive. Fairfax is by far my most recent addition, bought initial shares for me, the wife and kids in early 2021 - thanks to Viking on this board, who I believe also posts his thoughts on SA where I first read his thoughts on the company. As an older person with a crusty mindset, a stock literally has to jump out as something begging to be owned before I will buy. If that same company is unsuccessfully targeted by the government for anti-trust violations, all the better.

Yeah, high share price was always the reason or excuse given but today one can easily buy fractional shares. The other issue is two classes of stock but some of us remember when there was only one class and they weren't so expensive. Not that Buffett would give a sh-t one way or another; in fact he probably prefers to be excluded for the same reason why Groucho Marx would never be a member of a club that would have him.

Is there an argument to be made that Fairfax won't get an invite due to the Watsa family control of the company? Similar to why Berkshire is not in the Dow 30?

Like many of you, it is hard to discern anything more about Berkshire's future than what Buffett has told us. But future management will (should) have to earn the deference now paid to Buffett by shareholders. It will be interesting to see how long the honeymoon period lasts.

No one would want to own a lousy business in perpetuity. Just like no one would care to own a rental property that is a money pit in a declining neighborhood with problem tenants. Imagine if every successful entrepreneur sold their business the first time someone came along with a heightened offer. IMO, value investing involves much more than an attempt to squeeze every penny out of an investment dollar. Is it possible to find a higher returning investment than those that you own? The answer, of course is always. But that is not the same question as whether it is wise to try to do so. Management plays such an important role in stock selection. How many public companies are out there where you trust management implicitly? My guess (and it is only a guess) is that most folks who owned stock in such companies in the past and sold those stocks for the purpose of reinvesting in something else ultimately regret their decision.

What about taxes? A good value investor understands the value of money lost. Just as some folks would not sell a valuable piece of rental property just because its value has risen, why sell a stock when the business continues to do well? As Buffett has often said, selling requires two decisions. It also requires more time and effort to learn and evaluate a new business. When you look at some of the great wealth that has been created, it often is the result of sticking with one or a few winners.

Thanks to all for your kind words. @dealraker, fear of failure has always been in the back of my mind - hence a conservative approach to investing. With stocks in particular, I'll only invest in highly dominant (near-monopolistic) companies with superior management, great balance sheets, and a history of successful capital allocation, innovation and profitability in most any economic cycle. Rarely will I venture into anything else. Starting in the early 1980s and for many years I owned only 2 stocks - BRK and MO. At the time both seemed to represent the perfect investment. IMO, one still does.

I only worked for others long enough to learn my craft(s). The retirement account was from the last 5-year period of employment 30 years ago. After that I needed non-tax deferred liquidity in order to build a business and invest with no restrictions. In hindsight it probably would have been better to set aside sums each year in tax deferred plans but a desire for unrestricted liquidity always trumped what looked like wealth that could only be enjoyed too far out into the future. I've always been a prolific saver and lived well below my means - another lesson learned at a younger age by observing others close to me who did otherwise. Initially I'd use only as much debt as needed to acquire real estate but then pay it off as quickly as possible. Young folks here probably don't remember or even realize that mortgage rates were often much higher than they are now. Once it became unnecessary to finance anything, I simply didn't. Ironically, as difficult as the period between 2009-2011 was for most folks, it was a boon for those with cash and no debt. Again, hindsight taught me I could have done much more even in those years but in truth, my lifestyle would not have changed regardless of how much more money could have been made. Inaugural post, after guiltily monitoring this board for quite some time. There are truly some amazing posters here who generously share their time and ideas. And of course, thanks to Sanjeev. As an almost pure Buffett disciple, my goal has always been to invest in stocks and other assets that can eventually be passed down to heirs. More than half of my net worth is in fully paid for real estate. Other investments include a highly concentrated stock portfolio. Largest holdings are BRK, AAPL, HD, MSFT and lately FRFHF. Outside of a small retirement account (less than 3% of net worth), no stock sales since the end of last century, when I liquidated a longstanding position in MO. The retirement account satisfies a recurring itch to "do something", though it has far under-performed other long-standing investments. Since youth I have no debt - buy everything including real estate for cash. (I watched debt ruin one too many people). Will gladly trade an extra few % of return for a good night's sleep. It took a good chunk of a lifetime to reach the point of not having to worry about money but the ride has been well worth it. Comments, suggestions or criticism is welcome - that's one reason why I am here.

Inaugural post, after guiltily monitoring this board for quite some time. There are truly some amazing posters here who generously share their time and ideas. And of course, thanks to Sanjeev. As an almost pure Buffett disciple, my goal has always been to invest in stocks and other assets that can eventually be passed down to heirs. More than half of my net worth is in fully paid for real estate. Other investments include a highly concentrated stock portfolio. Largest holdings are BRK, AAPL, HD, MSFT and lately FRFHF. Outside of a small retirement account (less than 3% of net worth), no stock sales since the end of last century, when I liquidated a longstanding position in MO. The retirement account satisfies a recurring itch to "do something", though it has far under-performed other long-standing investments. Since youth I have no debt - buy everything including real estate for cash. (I watched debt ruin one too many people). Will gladly trade an extra few % of return for a good night's sleep. It took a good chunk of a lifetime to reach the point of not having to worry about money but the ride has been well worth it. Comments, suggestions or criticism is welcome - that's one reason why I am here.