2023 Annual Letter

“I realized that the essence of mountain climbing is to keep putting one foot in front of the other, and that it takes all your concentration. Like so much else, all you have to do is keep one step ahead, but it’s hard to do.”

– Bill Russell (1979)

“Well, yes, you climb as hard as you can by just advancing one inch at a time. That’s the secret of life.”

Charlie Munger (2023)

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Q3 2023 Letter

“Yet we cannot avoid the conclusion that the most generally accepted principle of timing--viz., that purchases should be made only after an upswing has definitely announced itself--is basically opposed to the essential nature of investment. Traditionally the investor has been the man with the patience and the courage of his convictions who would buy when the harried or disheartened speculator was selling. If the investor is now to hold back until the market itself encourages him, how will he distinguish himself from the speculator, and wherein will he deserve better than the ordinary speculator’s fate?” – Benjamin Graham & David Dodd

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Q2 2023 Letter

“Often when a young coach comes to see me to ask for advice, I tell them to imprint their vision of the game and not to forget that the game itself is a good coach and that observation is often as effective as talking. During a match, there are billions of possible combinations, and that’s what makes football the wonderful, rich, surprising sport that it is. A player is constantly adapting his technique to the situation. He cannot act just on reflex. He has to prepare, correct himself, find his place, decide: All this is something he acquires, he works on, he builds on. But he will need to be innovating constantly as he makes his decisions because the situation will never be exactly the same as whatever he experienced in the previous scenario, in the previous match. Our sport depends on three criteria: ball control, decision making, and the quality of execution.” – Arséne Wenger

“Rather than being told which tools are available for which ends, it is more useful to invent your own tools.” – Richard Serra

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2022 Annual Letter

“The King asked his wise men for some single thing that would make him happy when he was sad, but sad when he was happy. They consulted and came back with a ring engraved with the message ‘This Too Will Pass.’” – Kim Stanley Robinson

“This is the third time that Warren and I have seen our holdings in Berkshire go down, top tick to bottom tick, by 50%. I think it’s in the nature of long-term shareholding, with the normal vicissitudes and worldly outcomes in markets, that the long-term holder has his quoted value of the stock go down by say 50%. In fact, you can argue that if you’re not willing to react with equanimity to a market price decline of 50% two or three times a century, you’re not fit to be a common shareholder and you deserve the mediocre result you’re going to get.” – Charlie Munger

“A further comforting thought is that since no one knows what the future holds, all of us are entitled to guess about it. We should not forget, though, that an informed guess has an edge over a wild one.” – Thomas Phelps

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Q2 2022 Letter

Yes. You can short civilization if you want. Not a bad bet really. But no one to pay you if you win. Whereas if you go long on civilization, and civilization (therefore) survives, you win big. So the smart move is to go long. Go long. – Kim Stanley Robinson

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2021 Annual Letter

“But with enough reinforcement, players may even find themselves asking the same question in the real world, where the choices are less clearly defined. In the right context, a game is not just a vehicle for fun, but an exercise in self-determination and confidence. Good games teach us that there are tradeoffs to everything, actions lead to outcomes, and the chance to try again is almost always out there.” – Sid Meier (2020)

“Executives often resist making tradeoffs for fear they will lose some customers. The irony is that unless they make tradeoffs and deliberately choose not to serve all customers and needs, then they are unlikely to do a good job of serving any customers and needs. Clarity about what you don’t do, then, is the best way to succeed at what you do choose to do.” – Joan Magretta (2011)

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Q3 2021 Letter

“Mediocre people don’t like high achievers, and high achievers don’t like mediocre people. So, if everybody doesn’t buy into the same principles and values of the organization at the same high standard, you’re never going to be successful. Just like our spring practice right now. You know what my goal with spring practice is? Get the right guys on the bus. Get them in the right seats. And get the wrong guys off the bus.” – Nick Saban

“They're a rotten crowd,” I shouted across the lawn. “You're worth the whole damn bunch put together.” – Nick Carraway

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Q2 2021 Letter

“I venture that ‘current trends’ will no longer hold. That’s because ‘current trends’ always look linear while history’s full arc almost never does. […] Life is like the Mississippi. It flows. It meanders. Zoom in close enough, and you may find a straight edge, but the whole landscape is a restless and ever-curving thing.”
– Ben Orlin, Change Is the Only Constant

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Q1 2021 Letter

“Each crisis also has its unique individual features – the nature of the shock, the object of speculation, the form of credit expansion, the ingenuity of the swindlers and the nature of the incident that touches off revulsion. But if one may borrow a French phrase, the more something changes, the more it remains the same. Details proliferate; structure abides.”
– Charles P. Kindleberger and Robert Aliber

”The gods are just, and of our pleasant vices / Make instruments to plague us.”
-
King Lear (5.3.162-163)

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2020 Annual Letter

“I might go on discussing this subject at great length, but after all is said, done, and written, my own book of experiences will best show what these obstacles are, and how I managed to overcome them to some extent.”
– Marshall “Major” Taylor (1928)

But experience has taught me that you cannot value dreams according to the odds of their coming true. Their real value is in stirring within us the will to aspire. That will, wherever it finally leads, does at least move you forward. And after a time you may recognize that the proper measure of success is not how much you’ve closed the distance to some far-off goal but the quality of what you’ve done today.”
– Justice Sonia Sotomayor (2013)

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Q3 2020 Letter

“Newton’s patience was limitless. Truth, he said much later, was ‘the offspring of silence and meditation.’ And he said: ‘I keep the subject constantly before me and wait ‘till the first dawnings open slowly, by little and little, into a full and clear light.’”
– James Gleick, Isaac Newton (2003)

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Q2 2020 Letter

“It’s important therefore to know who the real enemy is and to know the function, the very serious function of racism, which is distraction. It keeps you from doing your work. It keeps you explaining, over and over again, your reason for being. Somebody says you have no language and so you spend twenty years proving that you do. Somebody says your head isn’t shaped properly so you have scientists working on the fact that it is. Somebody says that you have no art, so you dredge that up. Somebody says you have no kingdoms, so you dredge that up. None of that is necessary. There will always be one more thing.”
– Toni Morrison (1975)

“But over the years, no amount of wealth, education or prestige has distracted me from the discrimination, prejudice and segregation of opportunity that America’s communities of color endure. In my years on Wall Street, I have been doubted, discounted and judged reflexively on the basis of my skin color. The past few months have exposed our societal failures even further. We must heed the call to dismantle the inequality that makes careers such as mine the exception — rather than the rule.

“In finance, firms owned by white men manage 98.7 percent of the $69 trillion managed by the U.S. asset management industry. Similarly, 88 percent of senior fund managers are white and even analysts and associate managers, more junior positions, are more than 70 percent white. When it comes to the Federal Reserve, the State Department, the legal profession or myriad other fields, extraordinary qualifications are required for blacks to compete at the same level as their white colleagues.”
– Eddie Brown (2020)

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Q1 2020 Letter

I wish it need not have happened in my time,” said Frodo.
“So do I,” said Gandalf, “and so do all who live to see such times. But that is not for them to decide. All we have to decide is what to do with the time that is given us.”
J.R.R. Tolkien, The Fellowship of the Ring (1954)

“I tried to look ahead by decades rather than by quarters, and to rebut economists who contended that the advanced economies were doomed to subpar growth for a long time. I told the graduates, ‘Both humanity’s capacity to innovate and the incentives to innovate are greater today than at any other time in history.’ In short, I tried to convince them that the New York Yankees Hall of Famer Yogi Berra was wrong when he said that the future ain’t what it used to be.”
– Ben S. Bernanke (2015)

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2019 Annual Letter

“‘The prize ring lost a good man in you,’ he said, laughing. ‘You were getting a licking but you hung on. That’s what you always want to do. You know how you feel and maybe you feel pretty bad. But you don’t know how the other fellow feels. Maybe he is worse off than you are. A fight is never over until one man is out,’ he emphasized. ‘As long as you ain’t that man you have a chance. To be a champion you have to learn to take it or you can’t give it.’” – Bernard M. Baruch (1957)

“Don’t call it a comeback. I’ve been here for years.” – L.L. Cool J (1990)

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Q3 2019 Letter

“‘Let me taste the dish,’ said Brillat-Savarin, ‘and you can spare yourself the rhetoric on how well you cook.’” – As paraphrased by Rosser Reeves in Reality in Advertising (1961)

“Real G’s move in silence like lasagna.” - Lil Wayne

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Q2 2019 Letter

“Your opportunity here and beyond this campus is huge, demanding, and vital. You are singularly able more than previous generations; not because you are smarter (although you may be) or because you have tools your predecessors lacked, but because you have time. Time is on your side, as is a chance to fashion an amazing future. Relish it. Use it. Revel in it.” – Toni Morrison

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Q1 2019 Letter

“I was lucky to come off no worse than I did. None of this would have happened if, as I wish I had done, I had asked myself beforehand, ‘If you do this, what do you want to happen?’ and ‘If you do this, what do you think will happen?’ I wouldn’t have liked either answer. These two questions became valuable guides for me in the future.” – Ed Thorp

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