And so, what he did is he went and really figured out the laws of investing that have been revealed by Buffett and his partner Charlie Munger, really by just reading and then going for 20 years running to the Berkshire Hathaway annual meeting. This idea of actually reverse engineering what people who are wiser and smarter than us have already figured out, instead of trying to reinvent the wheel, is incredibly powerful.
All of these great investors that I interviewed are people who have beaten the market by a mile. And most of them end up saying,"Yeah, most people should buy index funds." There's great strength in being self-aware enough to ask, am I wired to win this game? Do I have the informational advantage.
Look, if think you're someone who can win this game, there are principles in my book where I show you how people like Buffett, Pabrai and Munger do it. But for most of us, it's very wise to just invest in index funds in a fairly diversified way.Depending on your age, I think it's especially important to focus first on preserving your capital instead of taking wild risks by speculating too aggressively, which could easily put you further behind.
SAFEMOON