Two for Tuesday - Vol. 4

You've been waiting a whole week for this.

ONE

Ignore all short-term market prognostications.

This post from Mark is the simple truth. There is no secret formula or algorithm. There is nobody on Earth that knows what is coming next.

We just have to steer the boat with the information we have at hand, and usually the most important information is the timeline with which we will need/want to use our cash. Meaning, long-term money belongs in long-term (sometimes volatile) investments, and short-term money belongs in short-term (usually more stable and very liquid) investments.

Henry Singleton knew the truth.

TWO

When we are investing capital in our WCP fund, one qualitative factor we love to dive into is who is on a company’s board of directors. We love to see material common equity ownership, reasonable board compensation, and board members who are dialed in with the company. Better yet, they use their own capital to buy shares in the open market.

The Kingswell.io Substack recently covered the latest Berkshire Hathaway proxy statement. In it, Warren Buffett covers who Berkshire aims to build its board with:

“Individuals who have very high integrity, business savvy, an owner-oriented attitude, a deep genuine interest in Berkshire, and have had a significant investment in Berkshire shares relative to their resources for at least three years.”

Fitting with Buffett, this is a simple description of who they want. Simple, straightforward, and exceedingly logical. Just like their investments.

Hope your week is great! Now go and invest well!