I am continuously amazed at the extent of humility that I see in the value investors that I so much admire and learn from. When one reads / hears their words, one gets the distinct impression that they are genuinely aware they couldn't have been so successful without the assistance of others. They are forever declaring how lucky they are, how fortunate and grateful they are etc. They do not attempt to convince their investors that they can out-guess or time the market, and they are able to say 'I have no idea'. Their humor is self-deprecating and they do no hesitate in admitting their investment errors, or their infallibility.
Here's some examples of Warren Buffett's humility and gratitude:
"Charlie and I are extraordinarily lucky. We were born in America; had terrific parents who saw that we got good educations; have enjoyed wonderful families and great health; and came equipped with a “business” gene that allows us to prosper in a manner hugely disproportionate to other people who contribute as much or more to our society’s well-being. Moreover, we have long had jobs that we love, in which we are helped every day in countless ways by talented and cheerful associates. No wonder we tapdance to work."
"The odds for me to have been born in the US were 1 in 50. I won the ovarian lottery. If I had been born in Bangladesh, the chances are that I would not have had such great opportunity. Bill Gates says that if I had been born 1,000 years ago, I would have been some animal's lunch."
"Charlie shoved me in the direction of not just buying bargains, as Ben Graham had taught me. This was the real impact Charlie had on me. It took a powerful force to move me on from Graham's limiting views. It was the power of Charlie's mind. He expanded my horizons."
It occurred to me that there is a direct relationship between one's level of gratitude and one's ability to succeed as a Value Investor. But before I share this observation, I think I should first give thanks myself:
Here's some examples of Warren Buffett's humility and gratitude:
"Charlie and I are extraordinarily lucky. We were born in America; had terrific parents who saw that we got good educations; have enjoyed wonderful families and great health; and came equipped with a “business” gene that allows us to prosper in a manner hugely disproportionate to other people who contribute as much or more to our society’s well-being. Moreover, we have long had jobs that we love, in which we are helped every day in countless ways by talented and cheerful associates. No wonder we tapdance to work."
"The odds for me to have been born in the US were 1 in 50. I won the ovarian lottery. If I had been born in Bangladesh, the chances are that I would not have had such great opportunity. Bill Gates says that if I had been born 1,000 years ago, I would have been some animal's lunch."
"Charlie shoved me in the direction of not just buying bargains, as Ben Graham had taught me. This was the real impact Charlie had on me. It took a powerful force to move me on from Graham's limiting views. It was the power of Charlie's mind. He expanded my horizons."
It occurred to me that there is a direct relationship between one's level of gratitude and one's ability to succeed as a Value Investor. But before I share this observation, I think I should first give thanks myself:
First and Foremost, I am extremely thankful for:
My wife Einat, who allows me to be me. From the onset you have been supportive of and willing to join me in doing things differently, in not being pressured with what is conventionally expected of us, and of holding a long term view. Our children could not want for a more amazing mother. I could not want for a more amazing partner. And you're one hell of a cook!
My daughters – Alma and Shira – you are my greatest teachers. I am in constant awe of you both, and of the role of parent. I can only hope I won't let you down.
My parents – who placed education above all. By example, you taught us the value of a strong work ethic and the importance of integrity.
And especially to my father, who put that first book 'How to Buy Stocks' (by Louis Engel) into my hands at age 12. I still have that paperback copy (1977 edition), its pages tattered and the color of a macchiato. Since then, I have been captivated by financial markets, and constantly seek to outwit 'the crowd'.
I am also very thankful to (in no particular order):
Oded Kraizel – My very own 'abominable no-man', he is the real impetus behind this blog. In the short time that I have known him, he has had a major positive influence. He has an eagle-eye when it comes to financial statement analysis, despite having no formal accounting training and is a committed Value Investor. And he makes the world's best Tahini!
Tony Holley – who first struck up a conversation with me at a bus stop in Sydney's financial district, and then proceeded to explain how my methods for investment analysis were all wrong. In the space of a couple of weeks you placed The Intelligent Investor into my hands, introduced me to the world of Buffett, and convinced me to abandon technical analysis and adopt the precepts of Value Investing. Ever since then, you continuously ensure that I am reading great books – even when the distance between us is thousands of miles.
Larry Shein – who was the raw definition of courage. I am forever grateful for the laughter and hours of philosophy, and for the chance to say goodbye.
Lisa Wade – who despite living on a different continent to me for most of the last 15 years, remains one of my closest friends. She was the first person that suggested that I become an equity analyst.
Hamish Petrie – who I have had the wildest of times with, and who dragged me from Sydney to San Francisco to set up our first company. He is one of the greatest salesmen I know. Watch out for his close – it's lethal!
Danny Marcus – who is committed to remaining young at heart. I miss diving with him, his friendship and humor, his worldly wisdom, and his insistence that I learn from his experiences.
Dave Shein, Nathan Cher & ComTech Communications - my years at ComTech had a major influence in shaping the way I view business strategy, management structures and accounting principles. I was the company's 4th employee, working part-time whilst still in highschool, making and testing networking cables in the Erskine Street basement. I financed my university years by working in the company's dispatch center and later in the PROM testing lab, before becoming the company's assistant accountant. There is much to write about what I learned at ComTech, and I hope to devote an entire post to it.
Prof. Yehezkel Dror – Recipient of the Israel Prize. I was fortunate to work under his steadfast tutelage during my first years in Israel. I will be forever grateful to him for introducing me to the world of futurist studies, and long-term scenario and trend analysis.
Shlomo Nir – who is always there and generous with advice on all matters, from parenting and marriage, to car engines and problems with the plumbing.
Illana McKinstry and Dezy Devai – the twin sisters that have been like my own. They have been there, unconditionally, for as far back as I can remember.
Paul Israel & The Australia-Israel Chamber of Commerce - for his untiring dedication to promoting bilateral trade between the 2 countries. Onya Paul!
Jon Boock and the Israel Funds Observer team - In an industry that does not possess a modicum of a long-term perspective, they are the lone voice committed to bringing to the Israeli Market a level of rationality and depth of analysis that did not exist previously. Watch for their analysis and commentaries - they will no doubt separate the wheat from the chaff!
Oren Shemesh – because you can't be lucky enough to have great neighbors!
My students - past and present - you are a constant source of challenge, fulfillment, learning and inspiration.
And I could not see what I see, nor do what I do, were it not for my teachers:
I am grateful to my teachers: Warren Buffett, Charlie Munger, Benjamin Graham, Philip Fisher, Mohnish Pabrai, and Joel Greenblatt.
I have yet to come face to face with any of you, and we have never exchanged a word, but you continue to share your knowledge generously. You answer questions that are too intelligent for me to pose, and you have blazed a bright and burning trail that has been easy to follow.
You see, I am really nothing more than the sum total of the cumulative influences of the individuals that I have deeply associated with, and from the books that I have read. The only credit I grant myself is in surrounding myself with people far more intelligent and talented than I am, my willingness to be open to new ideas, and for earning their friendship and affection. When you surround yourself with people that you admire and that you can learn from, you are left with little choice but to improve yourself. They force you to be the best you can be.
The relationship between Gratitude and Successful Value Investing
It is easy to feel genuinely grateful for one's situation when one is critically honest with oneself, and is not tainted by ego. One views things more clearly and has a greater appreciation of all the factors that have lead to the present moment.
Successful Value Investing begins with the ability to appraise an asset accurately – to see it clearly for what it is – without all the market noise. To appreciate something is to know its worth or value – to appraise it accurately - and so dear reader, it should be no surprise that the world's most successful value investors are also the most grateful.
And I could not see what I see, nor do what I do, were it not for my teachers:
I am grateful to my teachers: Warren Buffett, Charlie Munger, Benjamin Graham, Philip Fisher, Mohnish Pabrai, and Joel Greenblatt.
I have yet to come face to face with any of you, and we have never exchanged a word, but you continue to share your knowledge generously. You answer questions that are too intelligent for me to pose, and you have blazed a bright and burning trail that has been easy to follow.
You see, I am really nothing more than the sum total of the cumulative influences of the individuals that I have deeply associated with, and from the books that I have read. The only credit I grant myself is in surrounding myself with people far more intelligent and talented than I am, my willingness to be open to new ideas, and for earning their friendship and affection. When you surround yourself with people that you admire and that you can learn from, you are left with little choice but to improve yourself. They force you to be the best you can be.
The relationship between Gratitude and Successful Value Investing
It is easy to feel genuinely grateful for one's situation when one is critically honest with oneself, and is not tainted by ego. One views things more clearly and has a greater appreciation of all the factors that have lead to the present moment.
Successful Value Investing begins with the ability to appraise an asset accurately – to see it clearly for what it is – without all the market noise. To appreciate something is to know its worth or value – to appraise it accurately - and so dear reader, it should be no surprise that the world's most successful value investors are also the most grateful.
You see, the process of wealth generation seems to begin by realizing how wealthy we already are. I think this is what Rabbi Ben Zoma meant when he said: "Who is rich? He who is happy with that he has." Pirkei Avot (Ethics of the Fathers). It is also an interesting coincidence that this same quote appears in Benjamin Franklin's Poor Richard's Almanack. Benjamin Franklin is Charlie Munger's hero. Charlie is Warren Buffett's partner.
A Gratitude Meditation
If you woke up this morning with more health than illness, you are more blessed than the million who will not survive this week.
If you have never experienced the danger of battle, the loneliness of imprisonment, the agony of torture, or the pangs of starvation, you are ahead of 500 million people in the world.
If you can attend a church / synagogue meeting without fear of harrassment, arrest, torture or death, you are more blessed than 3 billion people in the world.
If you have food in the refrigerator, clothes on your back, a roof over your head, and a place to sleep, you are richer than 75% of this world.
If you have money in the bank, in your wallet, and spare change in a dish someplace, you are among the top 8% of the world's wealthy.
If you have ever made a phone call, you are ahead of 50% of the world population that never has.
And if you are reading this blog - and have access to the internet then you are ahead of 90% of the world population that does not have access to the internet.
Next Post - "Who is this Warren Buffett Dude Anyway?"
Signing off for now: "May you always possess the wisdom to see what the market does not, and the courage to act on it."
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