You don't grow a company from a standing start to $500 billion without the possession of a few superpowers. Unlike the Marvel world, Warren and Charlie's superpowers can be learned and are obviously transferrable. So why not try?
After spending my annual weekend in Omaha, I wrote down this quick list.
- A long time horizon–very, very long preferred.
- Doing nothing.
- Understanding that investing is not a formula.
- Avoiding competition.
- Avoiding the appearance of impropriety.
- Avoiding stupidity.
- Zero FOMO.
- Strong principles implemented better over time.
- Never needing the money.
We want companies we own to have these superpowers. Apple is great at doing nothing. They haven't convinced themselves to buy Netflix or 20th Century Fox or some other synergistic expensive acquisition. They sit in Cupertino and do what they do.
Markel most definitely believes that investing is not a formula. Tom Gayner (Trades, Portfolio) uses the prose of an English major to describe investing in Disney, Facebook, Google and CarMax. He may have spreadsheets, but he makes decisions on the whole picture, not just the value in cell R87.
As I look at my portfolio, my companies are pretty darn good at these superpowers. Not perfect, but they check a lot of the boxes. I've decided to add a new "Superpower Checklist" to the end of my investing process. I think it is a great catch all when you're evaluating a business. It is especially good to gauge the depth of my knowledge on new opportunities. There a few names on the shortlist currently, where I don't have a strong point of view on a few superpowers. Guess I have to keep reading.
But, you see, there is a much better use of this list. These superpowers are a guide to a happy life (especially, if you substitute the word life for investing in No. 3). The good news is that we're all going to fail to achieve the Berkshire ideal. You don't just get to have superpowers just because you know they exist. I'm owning that now. I'm no Warren, and there will never be another Charlie. But just by having these superpowers as a north star, we'll improve our habits day by day. We'll be better friends, have lower stress levels and have a greater impact on what matters. Most importantly, we'll all enjoy our minutes on this planet as much as Warren and Charlie have.
P.S. I highly recommend listening to the Berkshire Hathaway Annual Meeting Podcast that Yahoo releases. It's like being there without the dull headache that comes from waking up at 4:00 a.m. to get a spot in line.
Disclosure: Berkshire Hathaway, Markel and Apple are my three biggest holdings currently.
About Ryan Dolan
Ryan Dolan is a regular guy who got interested in Warren Buffet at business school a decade ago. He launched the Mighty River in 2017 to share investing wisdom, hard-earned mistakes and his general approach to applying Warren and Charlie's values to life. He likes to call it the guide to getting rich slowly.
