“Make friends with the eminent dead.”- Charlie Munger

Investing is incredibly difficult, and the competition is fierce. Most people hope to get rich quickly with little work—of course, they do. Investors sometimes hear about some stock that folks have made money on and buy it blindly, hoping to get in on whatever the gold rush of the day is. Stories of great success in the stock market keep people coming back, but the people who make real money over time tend to focus on a fundamental question: who is running the business I own a stake in? Are they competent? Do they have a good plan? Who has got my money, and what do they plan to do with it? This seems simple, but far too many investors ignore this essential analytical lens.

 The perennial swinging of the pendulum between fear and greed continues through whatever the issues of our modern time are. Also perennial and above any catalyst of the day is being able to evaluate what management is telling you soundly. So, when you’re feeling fresh and looking at a complicated graph and surmising which securities you think will do best, ask yourself: What do you know about this company and the people that make it up? Too many firms can attract capital with buzzwords and promises. There are a lot of ways to judge CEOs....
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