A Quote We Love – Smart and Patient Wins Again
Podcast guest and personal finance author Morgan Housel recently wrote a piece warning of the dangers of trying to take the “fast” approach to investing. Housel’s “Too Much, Too Soon, Too Fast” tells the story of what happened to the third, lesser-known, investing partner of Warren Buffett and Charlie Munger.
Here’s an excerpt:
Everyone knows the investing duo of Warren Buffett and Charlie Munger. But 40 years ago, there was a third member, Rick Guerin. The three made investments together. Then Rick kind of disappeared while Warren and Charlie became the most famous investors of all time.
A few years ago, hedge fund manager Mohnish Pabrai asked Buffett what happened. Rick, Buffett explained, was highly leveraged and got hit with margin calls in the 1970s bear market.
Buffett told Pabrai: