#15 The 25 Year Portfolio, Why Is Rolex a Luxury Item, and other things
Vietnam, Berkshire, and mindfulness
I took a break from writing and it was well worth it. Spent the last week and a half of April in Vietnam with friends. We had some amazing new experiences. From flying in the A380 business class to doing local food tours, we did create lot of memories.
Why Are Rolex Watches Given So Much Importance?
The best way to create demand for any product is to create scarcity. This is exactly what most luxury brand products do. Create scarcity. It sells. There is always more demand than supply. This is the story of Rolex that was founded in 1905. Initially, the brand focused on making the best possible products and somewhere after 4-5 decades, they got an opportunity to create a luxury brand. Interesting story.
The Focus On Being Mindful
Entering monk mode is hard. I hope you get what I mean. Focusing on doing the one thing. Doing things you actually enjoy and not just for the heck of it. Taking a step back sometimes helps. I think about this regularly but the addictions are so hard that I just fail. However, the only thing I do successfully is switch off completely when I travel. From home, from social media.
Notes From The Berkshire Meeting
The AGM of Berkshire Hathaway just concluded last week. Sharing some of my favourite nuggets from the meeting -
At Berkshire we have a very simple estate planning: just hold the goddamn stock.
Berkshire will always hold a boatload of cash. It gives flexibility at inconvenient times.
If you want to know how to live your life, write your own obituary and reverse engineer it.
Your best defense against inflation is your own earning power, your skills.
Write your obituary and then try to live your life to achieve what you write. Don't make investment mistakes that take you out of the game.
10 Charts That Capture How The World Is Changing
I like charts, especially those that can capture long term trends in a single image. Refer this post where the author shares some interesting changes in the world. I enjoyed looking into this one.
Picking Stocks For 2048
I love people who invest for the long term. The ones who buy and then do nothing. There are way too many success stories. Tom Gayner, who all appeared on the Richer, Wiser, Happier podcast and the book, is funding university students to create a portfolio of stocks that will remain untouched for 25 years. At the end of 25 years, half of the proceeds will be used for scholarship and balance will be reinvested. Amazing!
Other Interesting Things
Morgan Housel at his best in his latest post - Some things I think. Some interesting nuggets -
The fastest way to get rich is to go slow.
Most financial debates are people with different time horizons talking over each other.
My jealousy of dogs: They can sit for hours doing absolutely nothing, appearing perfectly content.
There is an “ideal” net worth for everyone, when money not only stops bringing pleasure but becomes a social liability.
An unusual episode by William Green where he talks about health rather than wealth. I learnt a lot :)
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