Sit-on-Your-Ass Investing
Charlie Munger · 2005
"Outstanding investment returns are generated not through hyperactive trading, but by cultivating the extreme patience required to hold exceptional compounding machines for decades."
Munger's own term. Most of the finance industry is built to reward activity — trading, rebalancing, reacting to news. Munger argues almost none of that creates wealth. Once you've found a genuinely great business at a fair price, the highest-value action is to make a real, concentrated bet and then do nothing for decades. Every year you don't sell is a year you don't pay trading costs and don't trigger capital gains tax — and that deferred tax bill, left compounding instead of being paid out, is worth far more than most people realize.
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Waiting for the Fat Pitch
"Investing has no called strikes. Buffett borrows Ted Williams' 77-cell strike zone to argue that returns come from swinging only at pitches in your best cell — and that the hardest discipline is standing at the plate for years with the bat on your shoulder while the crowd screams at you to swing."