The Education of a Value Investor
Farnam Street stashed this in Books
One lesson that Guy reinforces is that your environment matters to the decisions you make.
“It’s important,” he writes, “to discuss just how easy it is for any of us to get caught up in things that might seem unthinkable—to get sucked into the wrong environment and make more compromises that can tarnish us terribly.” While we think that we change our environment, it changes us.
Part of the problem (of working on Wall Street) was that the competition was so fierce. This led to the belief that, if I wasn’t willing to do something, someone else would quickly step in to do it. This kind of environment is perfectly designed to get people to push the boundaries in order to succeed. It’s a pattern that’s repeated again and again on Wall Street. Through ambition, greed, arrogance, or naïveté, many bright, hard-working people have strayed into grey areas.
One non-intuitive way to improve your environment is to choose the right teachers that have already discovered the truths you want to learn.
There is wisdom here that goes far beyond the narrow world of investing. What I’m about to tell you may be the single most important secret I’ve discovered in all my decades of studying and stumbling. If you truly apply this lesson, I’m certain that you will have a much better life, even if you ignore everything else I write.
What I stumbled upon was this. Desperate to figure out how to lead a life that was more like his, I began constantly to ask myself one simple question: “What would Warren Buffett do if he were in my shoes?”
I didn’t ask this question idly while sitting in a coffee shop sipping a cappuccino. No. I sat down at my desk and actively imagined that I was Buffett. I imagined what the first thing would be that he would do if he were in my shoes, sitting at my desk.
Self-help guru Tony Robbins calls this “modelling” our heroes. “The key,” Spier writes, “is to be as precise as possible, picturing them in as much detail as we can. A related technique that he teaches is called matching and mirroring, which might involve changing the way you move or even breathe to match the other person’s movement or breathing. In my experience you start to feel what they feel and you even start to think like them.”