Twitter, SEC, Warren Buffett discussed on Invested: The Rule #1 Podcast
Matrix. Is that related there with mental the external and mental quadrant No i mean. I would call that more internal mental like i know like i wanna know if the filters that i have in my head and i'm using or helping you're hurting me and so like for me. A very common one is Let's say like leverage too much debt. The company i'm i am conservatively wired in such a way that like i'm very hesitant to take on a company that has a lot of leverage. I can't tell you for certain whether that helps or hurts my results yet. Like i don't have enough. Data built up in that in that that usage case. Eventually i will though. Because i'm keeping track of that and eventually be able to tell you as an entire reference class highly levered companies that i rejected helped me get better results. Or maybe the converse. And it's just as likely i'm not sure actually hurt my results like i was being too conservative and i. I don't know the answer to that yet but it. I think it's every single reason why you would reject a company should be put to the test of whether it actually helped or hurt you over the long term and then therefore make adjustments after that like. That's how you learn. Yeah that's the only way to learn the only way to make intelligent adjustments. Otherwise we're doing based on what we feel what we remember so tell me then about signal versus noises as the external plus mental quadrant. Well that's that's really you know. How do you spend your time like know. What are you allowing to blast your senses. Swith right and it's very easy to you know i. I like to think about as sort of food related and you know going on an information diet And not not eating too much of the junk food which you kind of know and you're eating junk food right But it feels good right and it's it's it's interesting and maybe it's a little controversial but it's not gonna help you create a better investment process and i think if you were really diligent You would actually keep track of your time and how you spend it in the investment process. Like how much time did i spend reading. Sec filings versus. How much time did i spend cruising twitter for you. Know an investment someone else's thesis on it So external and mental is the stuff coming in the twitter the social media all the way down to the sec filings. All the information that comes from the outside about what you're looking at and then the internal versus mental is really the structure in the process. The go through to analyze that information would that be fair right. Yeah how you manipulate all of that information. Really all of that data to create information that you then act on so i think then that brings us to the physical and the external which is the environment that you have for your investing process and this is a hugely fascinating area for me because i find my environment so influential that when i first started learning about investing new new had never met. You never heard about any of this. That was the very first thing that i thought about. What kind of environment do. I need to even be able to start this project. How do you what do you look for. How is your own. Investing environment set up. Yeah i think this is very idiosyncratic to everyone. You have your own individual environment that is probably optimized for you and i would encourage you know just like health stuff to be self experimenter in this this field trying things out seeing how it feels you feel sharp. Do you feel distracted so for me. And this was much easier. Pre work from home and doing home schooling with kids Which has really impacted a lot of my ability to do like sustained long-term deep work on home interesting. Yeah i feel opposite anyway. Well no my office is is very quiet. And it's i'm surrounded by but berkshire and warren buffett paraphernalia and for me that is just this constant reminder of what would buffet be working on right. Now what would he think is important. What would What would he be telling me that. I should do at this just this juncture and trying to have that sort of conversation with one of your heroes. Even though he's not there if you read enough about someone you probably have a pretty good idea what he'd be telling you at this point so i tried to like. I can't hide from warren right. He's he's always around one of those actually like you know like become fat headline posters like the life-size posters. Okay so i have one of those. But it's tough it's head and it's like it's probably two feet by two feet and it's up on the wall and he's he's staring at me all day. No you do not have sure jake. That's that's another level. You have a giant poster of buffets head and you have it so that his eyes are staring right at you. It's not so intense directly at me but he's he's watching watching he's watching. That's what i was just gonna go. Is he benevolently watching you or is he sort of a nanny schoolmaster type of way. What depends on. If i've been a naughty boy or nine could go either way co either way. What else is in your investing environment So i'd also like to have a lot of books around partly for reference material. If something that i want to like look up again real quick. I know the book is and And i just like being around books. Such just like my little sickness that i have The smell of a paper book. Yeah i i can't get into the reader at this point i've tried and there's just something for me about like physically writing in the margin alia of a book it just sticks better into my mind so i i I hate it. Because i feel like god. I'm trashing the environment by buying so many books and you can have it on an ear reader and it's you know but to me it's just not the same experience but i couldn't agree more. I'm also trying to get into it. Because i don't live in the. Us i live in a non english speaking country. The best easiest way for me to get english books is online. And it's amazing that i can just press a button and get a book but that means most of my books. Now are on my kindle and it's just not it doesn't pull me in the same way and it's actually something i truly struggle with and have been thinking about in my investing practice because there are many investing books that i just haven't really gotten to because they don't pull me in the same way i think there's something to be said about the medium and how it will how how much like gravity it has in kind of penetrating into your brain and for me the reader you know kendall doesn't have the same penetration as a physical book. I totally agree. I don't know why i don't know why either. But i completely agree. And there's something about being able to write in the book an underlying it that highlighting with my little pen on the screen just doesn't fulfill in the same way.