The first book that I read this year and inspires me a lot is Richer, Wiser, Happier by William Green. My friend recommended this book to me. William Green talks about super investors’ life, thought, principles that guide them both in investing and life. This thought and principle can be applied by us too. According to William Green, one of the best reasons to study the investors spotlighted in this book is that they can teach us not only how to become rich, but also how to improve the way we think and reach decisions.
There are so many great investors with great result consistently beat the market. I'll share two of them here. We start from Monish Pabrai which is known as WB India. He method is copycat investing by picking the best idea of successful investor and apply it himself. He was raised in India and had no background in finance and investing field. After high school, Pabrai has the opportunity to study at Clemson University, in South Carolina. There where he knew the stock market for the first time. After college, he took a job and then launched a technology consulting company. After some time, he has saving and start to invest by reading One Up on Wall Street by Peter Lynch. By that book, Monish Pabrai starts to notice Warren Buffett and his magic of compounding. There are three core concepts that Pabrai learns from Buffett:
Buying stock means purchasing a portion of an ongoing business with underlying value
Market is a voting machine not a weighing machine which is frequently fail to reflect the true value of stocks and its underlying business
Margin of safety
By applying Buffett’s approach, Pabrai hedge fund returned 1,204 percent versus 159 % for the S&P
500 index from 2000 to 2018. What an awesome result!
After Monish Pabrai, let’s learn from Sir John Templeton. The famous quote from Sir John Templeton is “It is impossible to produce superior performance unless you do something different from the majority.” Templeton’s investment record is wonderful. He had average return of 14.5 % over the thirty –eight years. What makes Templeton successful is his willingness to be lonely which comes from strong inner conviction. What makes Templeton interested in investing world is his years at Yale. After Yale, Templeton enrolled at Oxford majoring in business management which is considering ‘garbage’ at that time. In 1937, Templeton spent three months at a Wall Street brokerage firm called Fenner & Beane. He made bold bet and won. Just like Buffett, he was dare to take the risk when the potential upside was much greater than the downside.
There are the two successful investors that are wrote by William Green. There are still many other superior investors which you can find and read in his book. Not only Monish Pabrai and Sir John Templeton have the great result of investing, but also, they share the same spirit in the world of philanthropy. Pabrai focuses on helping not lucky enough but smart student to have the good education while Templeton oversee his charitable foundation and focus on philanthropy.
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