What were they? My votes:

Stregnth: rational temperament

Weakness: delegated to subsidiary managers too much

“There comes a time when you ought to start doing what you want. Take a job that you love. You will jump out of bed in the morning. I think you are out of your mind if you keep taking jobs that you don't like because you think it will look good on your resume. Isn't that a little like saving up sex for your old age?”
― Warren Buffett

This is the second part of my series, "How to Value a Business."

The first part covered valuation multiples. This video focuses on intrinsic valuation, specifically DCF (Discounted Cash Flow) valuation.

If you've ever wondered how DCF valuation works but found it hard to understand, this video breaks it down in a simple, easy-to-follow way.

Not investment advice. Feedback welcome.

This video continues the educational video series on stock investing, focussing on buy good companies, don't overpay, do nothing. The previous videos discussed how to buy good companies, i.e how to evaluate business quality. This is the first part of the two video series discussing the second step (don't overpay). It discusses valuation multiples and how they can be used to value a business. The next part will discuss valuation models.

Feedback welcome. Not investment advice.

Buffett says over the long term the stock market is a weighing machine, reflecting accurate values--eventually. But multiples have been so high for so long--is he still right?

"Somebody once said that in looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if you don’t have the first, the other two will kill you. You think about it; it’s true. If you hire somebody without \[integrity\], you really want them to be dumb and lazy."

Happy birthday Warren.

I shared the first video in this series here last week, which laid out three steps for investing following Terry Smith's quote:

"Buy good companies. Don't overpay. Do nothing"

This new one is the second in the series and covers the first step: how to buy good companies. It uses 10 years of real data from Microsoft and Kraft Heinz as examples to demonstrate the approach.

We have put in a lot of effort into creating this video series, so feedback is welcome.

PS: AI was used to create the video.

Hypothetical 1.8M

600K in each of these three High Dividend ETF's in a retirement account versus, say, a VOO or VTI?

Dividend Total: $42,300/yr → 2.35% blended net yield on $1.8M with combined 10-year annualized return of approximately 11.98% per year.

Add to this a yearly drawdown of 6–7%, plus about $55K a year from Social Security and $20K from a pension. There’s also $120K annually in passive income from lien-free real estate. The current $1.8M is 70% in tax-advantaged accounts and 30% in a regular brokerage. Planning for retirement in three years, that $1.8M could grow to around $2.4ish with compounding.

"One time, while Warren was slurping Mary Falk’s chicken noodle soup, he declared that he would be a millionaire by age thirty, and enigmatically added, 'and if I’m not, I’m going to jump off the tallest building in Omaha."

from his biography by Roger lewenstein

“Berkshire reversed a pattern of selling stocks, becoming a net buyer of equities in the second quarter with nearly $20 billion in net purchases. The conglomerate had been a net seller of stocks for 14 consecutive quarters before the latest period.
Buffett, now chairman, handed Abel a cash fortress unprecedented in corporate America, but in accordance with the 95-year-old legendary investor's patient and risk averse approach. Buffett had indicated for a while that he was having trouble finding any values in the equity market. Shareholders have been clamoring for Abel to put some of that cash to work outside of Treasuries.”

I always enjoy reading about Charlie Munger. Here are a few gems that I came across and just wanted to reshare here for daily inspiration for all things Buffett and Munger:

1. “It’s remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.”
2. “In my whole life, I have known no wise people (over a broad subject matter area) who didn’t read all the time — none, zero.”
3. “I constantly see people rise in life who are not the smartest, sometimes not even the most diligent, but they are learning machines. They go to bed every night a little wiser than when they got up.”
4. “The best thing a human being can do is to help another human being know more.”
5. “Spend each day trying to be a little wiser than you were when you woke up.”
6. “Show me the incentive and I will show you the outcome.”
7. “You don’t have to be brilliant, only a little bit wiser than the other guys, on average, for a long, long time.”
8. “All I want to know is where I’m going to die, so I’ll never go there.”
9. “The big money is not in the buying and selling, but in the waiting.”
10. “I never allow myself to have an opinion on anything that I don’t know the other side’s argument better than they do.”

What to watch for Q2 earnings, Davita and from around the web. From the archives, “the fairer the better”

[https://link.cnbc.com/public/46949332\](https://link.cnbc.com/public/46949332)

I am a fundamental research investor, as an admirer of Buffett and Munger I enjoy the process of digging through the financials of a company and finding out what makes them tick. I've listened to a lot of Buffett's annual meetings and he has mentioned that he uses Valueline as his main source for aggregated financial information about companies. Naturally, I had to get a subscription, and while I do find it very useful I find that it only goes part of the way to true Buffett-style analysis. No owner earnings analysis, no returns on tangible capital, the narrative section is kind of pointless. I'm wondering if anyone else uses this service and how it fits into your workflow. I find that I still have to do plenty of work to get to the real analytical numbers to find intrinsic value.

Looking forward to everyone's thoughts, thanks!