Wisdom from the wisest around us!

Here are some incredible insights from the wisest folks around us.

Warren Buffett on Jack Bogle, creator of index investing and founder of Vanguard

“If a statue is ever erected to honor the person who has done the most for American investors, the hands down choice should be Jack Bogle.

For decades, Jack has urged investors to invest in ultra-low-cost index funds. In his crusade, he amassed only a tiny percentage of the wealth that has typically flowed to managers who have promised their investors large rewards while delivering them nothing – or, as in our bet, less than nothing – of added value.

In his early years, Jack was frequently mocked by the investment-management industry.

Today, however, he has the satisfaction of knowing that he helped millions of investors realize far better returns on their savings than they otherwise would have earned. He is a hero to them and to me.”

Howard Marks (Oaktree Capital) on why envy makes us make wrong decisions:

From the book "The most important thing":

" I know of a nonprofit institution whose endowment earned 16 percent a year from June 1994 to June 1999, but since its peers averaged 23 percent, the people involved with the endowment were dejected. Without growth stocks, technology stocks, buyouts and venture capital, the endowment was entirely out of step for half a decade. But then the tech stocks collapsed, and from June 2000 to June 2003 the institution earned 3 percent a year while most endowments suffered losses. The stakeholders were thrilled.

There’s something wrong with this picture. How can people be unhappy making 16 percent a year and happy making 3 percent? The answer lies in the tendency to compare ourselves to others and the deleterious impact this can have on what should be a constructive, analytical process."

Li Lu's (Himalaya Capital) investment checklist

“My checklist is.. is it cheap?, is it a good business?,?who is running it?, and what did I miss? I go through all the checklist. When I go to ‘what did I miss?’?.. it is hugely important to understand psychology and human cognition.”?Li Lu

Morgan Housel author of "Psycholgy of Money" - Rich Man in a car paradox

When you see someone driving a nice car, you rarely think, “Wow, the guy driving that car is cool.” Instead, you think, “Wow, if I had that car people would think I’m cool.” Subconscious or not, this is how people think.

The paradox of wealth is that people tend to want it to signal to others that they should be liked and admired.?But in reality those other people bypass admiring you, not because they don’t think wealth is admirable, but because they use your wealth solely as a benchmark for their own desire to be liked and admired.

Have a great weekend!