Great digest from From Poor Charlie's Almanack:
- Measure risk - All investment evaluations should begin by measuring risk, especially reputational.
- Be independent - Only in fairy tales are emperors told they're naked.
- Prepare ahead - The only way to win is to work, work, work, and hope to have a few insights.
- Have intellectual humility - Acknowledging what you don't know is the dawning of wisdom.
- Analyze rigorously - Use effective checklists to minimize errors and omissions.
- Allocate assets wisely - Proper allocation of capital is an investor's No. 1 job.
- Have patience - Resist the natural human bias to act.
- Be decisive - When proper circumstances present themselves, act with decisiveness and conviction.
- Be ready for change - Accept unremovable complexity.
- Stay focused - Keep it simple and remember what you set out to do.
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