My value investment rules:
1, investment return != investor return
Do you think my brother Warren got rich by investing in stock like KO, Washington post which give me 3-4 % above inflation a year? No! He actually used his insurance company to get super high leverage which will never give margin call even when his company stock drop by 40% in the 2008 GFC.
2, don't forget the first rule
Even investor Richard Li sold tencent he bought at $1.5 and sold at about $7 when the investment grew to $1100 ($220 after 1-5 split). Tencent early share holder Naspers is a much better stock picker then my brother.
My two rules probably explained 99% of the people who got rich in the market, from little property investors to my well-known rich brother.
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