Tuesday Musing: Sometimes your best investments are the ones you don't make.

“Sometimes your best investments are the ones you don't make.”



This is one of my favorite quotes, it applies to every investment choice I will make over my lifetime.

If you follow Warren’s Buffets and Charlie's Mungers, investment careers they have both cited many times that the best way to achieve investment success ( acceptable returns and preservation of capital) is to bet big and swing only at a fat pitch.

As humans we have this need to constantly be doing something, if we are not ‘making moves’ then we are not earning our keep.  That mindset in the field investing is suicide. If we are in a 2009ish situation,and their are many ideas that's one then, but those types of events only happen about every 20 years or so. So what do you do in the meantime?

You wait for that fat pitch. Unlike real baseball there are not strikeouts for just waiting. Plant your feet and wait, if it doesn’t smell right, if you don’t understand everything about the business, if it's not cheap enough don’t swing.

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