WEBVTT - The Key Characteristics of Great Investors #563 0:00:00.040 --> 0:00:02.920 Welcome to How the Money. I'm Joel and I am Matt, 0:00:03.040 --> 0:00:26.599 and today we're discussing the key characteristics of great investors. Yeah, boie, 0:00:26.840 --> 0:00:30.440 this should we start an episode with me saying, yeah, boy, 0:00:30.520 --> 0:00:32.640 yes we should. It's okay to do that occasionally. If 0:00:32.640 --> 0:00:35.320 we did that every single episode, I think folks would 0:00:35.320 --> 0:00:37.800 not like it drop off. But to me, it's more 0:00:37.840 --> 0:00:41.840 of a Scrubs throwback for anybody who's never seen didn't 0:00:42.080 --> 0:00:44.000 j D or Turk one of them. I feel like 0:00:44.040 --> 0:00:46.080 one of them used to always say, yeah, boy, don't 0:00:46.120 --> 0:00:49.240 those guys have a podcast to uh with? I heart actually, 0:00:49.320 --> 0:00:51.159 or they used to where they would they're going back 0:00:51.280 --> 0:00:54.400 kind of reliving glory days. I didn't either, even though 0:00:54.440 --> 0:00:58.200 I loved Scrubs, that sitcom. It was a salad show, fantastic. 0:00:58.240 --> 0:01:00.400 I definitely enjoyed watching that one in college. But that 0:01:00.480 --> 0:01:02.880 is not what we're talking about today. We are dedicating 0:01:02.880 --> 0:01:06.560 an entire episode to investing. You know, like every episode 0:01:06.640 --> 0:01:09.240 we touch on investing a little bit, but we felt 0:01:09.280 --> 0:01:11.880 it was necessary that it was time to do a 0:01:11.920 --> 0:01:15.560 deep dive into the realm of investing and specifically kind 0:01:15.560 --> 0:01:18.560 of some of the things that go on internally that 0:01:18.640 --> 0:01:21.319 make the best investors out there. And these are things. 0:01:21.680 --> 0:01:23.920 Some of these things might may become more naturally to 0:01:24.040 --> 0:01:27.840 people than others, based on your personality type or your inclination. 0:01:28.280 --> 0:01:30.160 But I think all the things we're gonna mention here 0:01:30.240 --> 0:01:32.920 you can also develop, like you can become better at 0:01:33.319 --> 0:01:34.920 and so as we kind of point these things out, 0:01:34.959 --> 0:01:37.399 you might be like, I'm not naturally a patient person, 0:01:37.720 --> 0:01:39.760 but it's something we can we can all work on. 0:01:39.800 --> 0:01:42.480 You're given away the goods already. All right, that's all 0:01:42.800 --> 0:01:45.920 no more until we'll get there. Sure, But first we 0:01:45.920 --> 0:01:49.080 we need to continue the So you've talked about your pixel, 0:01:49.680 --> 0:01:51.840 your your new phone. It's it's sort of like a 0:01:51.880 --> 0:01:55.400 saga here, this this epic journey of your phone. And 0:01:55.520 --> 0:01:58.480 you've got a little update. Uh well, do I okay 0:01:58.560 --> 0:01:59.920 sharing this? I thought you were going to share it 0:02:00.000 --> 0:02:03.760 for me because I'm too bashful, because we've got to 0:02:03.800 --> 0:02:08.480 talk about this. So I have. I finally got a 0:02:08.480 --> 0:02:13.800 case because but it was too late, Yeah, too little, 0:02:13.800 --> 0:02:15.240 too late. I did the steps out of order. I 0:02:15.280 --> 0:02:17.160 cracked the screen and then got the case, and I 0:02:17.280 --> 0:02:19.040 really should have done it the other way around. I 0:02:19.040 --> 0:02:22.440 have learned my lesson point typically for a lot of years. Man, 0:02:22.520 --> 0:02:24.560 I didn't crack my screen. I was pretty good and 0:02:24.639 --> 0:02:27.160 not having a case. We came into work a couple 0:02:27.160 --> 0:02:29.800 of days ago, I saw your phone and had the 0:02:29.840 --> 0:02:32.200 crack screen, and I was so pissed you. I was 0:02:32.240 --> 0:02:34.320 pissed for you. I was just like, no, we literally 0:02:34.400 --> 0:02:37.560 just shook your head, like you idiot, you just got 0:02:37.600 --> 0:02:40.200 that phone. It's just it's been a few weeks. But 0:02:41.000 --> 0:02:42.840 I think it's fair to share it because like we 0:02:42.880 --> 0:02:45.040 share wins that we have, and I think it's it's 0:02:45.040 --> 0:02:47.480 good for folks to know that we're human. Sometimes we 0:02:47.840 --> 0:02:50.240 make dumb mistakes. Uh, And I think you would categorize 0:02:50.280 --> 0:02:52.519 this as a as a dumb mistake. Yes, And unfortunately 0:02:52.600 --> 0:02:54.960 it's only in a small corner and it doesn't really 0:02:55.040 --> 0:02:57.880 affect until you drop it again in that one crack. 0:02:58.720 --> 0:03:01.520 But that's why I got the case. Now the case, 0:03:01.600 --> 0:03:04.680 I'm even gonna give screen protectors. Get that screen protector there. 0:03:05.080 --> 0:03:07.560 It should act as like like glue. Let hold it 0:03:07.600 --> 0:03:09.640 all together. That's the goal. There. We're going from getting 0:03:09.639 --> 0:03:12.720 worse and my wife, she's like, one, just go get 0:03:12.760 --> 0:03:16.320 another screen, and I'm too cheap. Yeah, you just paid 0:03:16.320 --> 0:03:18.720 for this, No, no, I am such an idiot. I 0:03:18.800 --> 0:03:22.680 must like walk around with this crack screen for years 0:03:22.680 --> 0:03:24.880 to kind of walk of shame, just to remind myself 0:03:24.880 --> 0:03:27.600 of how much dummy I am. So I'm gonna I'm 0:03:27.600 --> 0:03:29.440 gonna leave it as is, but I'm gonna have the screen, 0:03:29.440 --> 0:03:32.600 get the screen protector, and hopefully it will stay just 0:03:32.919 --> 0:03:37.160 a small crack. And obviously that's absolutely the most affordable, cheapest, 0:03:37.200 --> 0:03:40.120 easiest thing that for folks to do to protect their phones, 0:03:40.200 --> 0:03:43.120 as folks might be upgrading getting new gadgets this fall, 0:03:43.480 --> 0:03:46.880 get that, get that case. I think the screen protectors 0:03:46.880 --> 0:03:49.120 are like five for nine dollars or something like that, 0:03:49.200 --> 0:03:51.720 so the the expenses minimal. You don't necessarily need an 0:03:51.720 --> 0:03:54.040 insurance policy. I didn't have an insurance policy that I'm 0:03:54.040 --> 0:03:55.360 not I'm not going to do that. That's a that's 0:03:55.360 --> 0:03:57.680 a waste of money. We're not crazy self insure, right, 0:03:57.760 --> 0:04:00.840 and the cheapest self insurance is a case. I realized 0:04:00.880 --> 0:04:03.160 that I just kind of thought it was poppy cock 0:04:03.240 --> 0:04:05.480 and thought I was above the law. So I thought 0:04:05.520 --> 0:04:07.200 you were better than me because I got was it 0:04:07.560 --> 0:04:09.400 last week or two weeks ago? I got a case 0:04:09.520 --> 0:04:11.960 or got the screen protector on there kind of mentioned 0:04:11.960 --> 0:04:14.720 it as an aside, but how did you drop your phone? Like? 0:04:14.760 --> 0:04:16.479 How did it happen? Had it? Literally I said it 0:04:16.520 --> 0:04:19.080 on the night table and it like slipped off like 0:04:19.200 --> 0:04:21.760 or something. Yeah. I was like what, No, And it 0:04:21.880 --> 0:04:23.640 was a short drop. I just assumed that it was 0:04:23.640 --> 0:04:25.880 gonna be okay, but it wasn't. Oh my gosh, when 0:04:25.920 --> 0:04:28.400 did Well you've got concrete floors in that room. Uh, 0:04:28.560 --> 0:04:32.839 They're like, aren't they there? There? No, that's tile, okay, 0:04:33.279 --> 0:04:39.160 hard hardwoods on a cross space or a basement where 0:04:39.240 --> 0:04:42.120 there's a little more bounced to. Well, sorry to hear that, dude. Hey, 0:04:42.160 --> 0:04:45.600 all right, I'll be okay. It's a minor inconvenience really 0:04:45.600 --> 0:04:47.599 when it comes down to it. But for everyone else 0:04:47.600 --> 0:04:50.720 out there, this is your warning. Don't be like me. 0:04:51.120 --> 0:04:53.279 All right, let's move on. Let's mention the beer we're having, Matt. 0:04:53.320 --> 0:04:56.800 This is October Fest by Dry County Brewing. They are 0:04:57.279 --> 0:04:59.520 right around the corner from where we live now, so 0:04:59.520 --> 0:05:01.640 I figured should try that. And it's gonna be that 0:05:01.680 --> 0:05:04.599 time of year where October Fests are on the shelves again, 0:05:04.960 --> 0:05:07.960 so let's let's drink one of these. September, though, Joel 0:05:08.080 --> 0:05:11.240 I know, but still you're like pumping spice Lotte guy, 0:05:11.240 --> 0:05:13.200 where you're like jumping the gun. You're like, okay, it's 0:05:13.240 --> 0:05:17.120 still summer, you're sweating, You're it's only not okay in July, right, 0:05:17.200 --> 0:05:19.240 So that's that's when I start to get annoyed. But 0:05:19.320 --> 0:05:21.920 October Fest beers, it's it's May now, is it okay 0:05:21.920 --> 0:05:24.400 to dream? Right? Not cool? Or they have the pumpkin 0:05:24.480 --> 0:05:26.320 beers are on the shelves obviously in full force at 0:05:26.320 --> 0:05:27.880 this point in time too. I think it's okay to 0:05:27.880 --> 0:05:31.280 start for taking in September if you start drinking in yeah, 0:05:31.400 --> 0:05:35.520 July or even early August. Sorry too soon? Fair enough, 0:05:35.560 --> 0:05:37.359 looking forward to enjoying one of these. And this is 0:05:37.520 --> 0:05:40.640 we've never had a beer by Dry County on the show, 0:05:40.680 --> 0:05:42.719 so looking forward to talking about them here at the 0:05:42.800 --> 0:05:44.960 end for sure. All right, well, let's get to the 0:05:44.960 --> 0:05:47.880 topic of hand. We're talking about the key characteristics of 0:05:48.080 --> 0:05:51.200 great investors, and Matt, there's been this, uh, I don't 0:05:51.240 --> 0:05:53.279 know if you've noticed. I think everyone's noticed this mass 0:05:53.320 --> 0:05:57.440 proliferation of micro transportation devices in recent years. I think 0:05:57.480 --> 0:05:59.320 That's what I'm gonna call it, at least, And there 0:05:59.360 --> 0:06:02.480 were the Bird scooters. I think they were maybe at 0:06:02.520 --> 0:06:05.640 least the most popular um of these micro transportation vices 0:06:05.720 --> 0:06:08.080 to show up in cities, and then all these competitors, 0:06:08.160 --> 0:06:10.400 Lime and all these other companies just sprung up and 0:06:10.400 --> 0:06:14.360 started putting hundreds in thousands of scooters in different cities 0:06:14.680 --> 0:06:16.200 and kind of got out of hand. A lot of 0:06:16.279 --> 0:06:20.320 them got became electronic litter on the sidewalks that people 0:06:20.320 --> 0:06:22.040 stopped using. A lot of them ended up just kind 0:06:22.040 --> 0:06:25.440 of thrown thrown in the trash sadly. But segways that's 0:06:25.440 --> 0:06:27.600 another one, right, they kind of make like a nerd. 0:06:27.720 --> 0:06:32.200 I feel like the actual Segways, the actual site Joe Blue. Yes, 0:06:32.680 --> 0:06:36.320 they're the nerdiest of the micro transportation devices, and I 0:06:36.320 --> 0:06:39.200 think mostly only used by downtown tourists at this point. Uh. 0:06:39.400 --> 0:06:44.400 Electric true electric skateboards. They're another interesting transportation to Actually, 0:06:44.400 --> 0:06:46.240 I'm pretty fascinated in those because those look like a 0:06:46.240 --> 0:06:48.960 ton of fund Like the ability just to go carbon 0:06:49.200 --> 0:06:50.880 down a hill like or not not even down a 0:06:50.960 --> 0:06:53.560 hill like. That's the fun on a regular skateboard is 0:06:53.800 --> 0:06:55.200 having to find a hill to go down, but the 0:06:55.240 --> 0:06:57.960 ability to be on flat ground and leg and do 0:06:58.040 --> 0:06:59.720 it do some carbon like, that's like a lot of 0:06:59.720 --> 0:07:01.520 fun of the one of the other really cool micro 0:07:01.560 --> 0:07:04.400 transportation devices is the one wheel, Like those things are 0:07:04.480 --> 0:07:07.160 kind of taken off. Well, I gotta be honest, right, 0:07:07.520 --> 0:07:09.800 there's some really cool stuff out there, but none of 0:07:09.840 --> 0:07:13.240 these newer transportation inventions holds a candle to the old, 0:07:13.320 --> 0:07:16.480 ultimate classic, to the bicycle. It's we talked about bikes 0:07:16.480 --> 0:07:18.040 all the time. I see where you're going. It's and 0:07:18.080 --> 0:07:20.440 it's not that bikes haven't improved in the past hundred years, right, 0:07:20.480 --> 0:07:23.960 they certainly have, but those iterations have been relatively minor. 0:07:24.440 --> 0:07:27.440 Yet bikes continue to reign supreme as the number one 0:07:27.480 --> 0:07:30.760 personal transportation device, at least in our opinion. Bicycles were 0:07:30.840 --> 0:07:33.160 the o g They were the one point of personal 0:07:33.200 --> 0:07:37.600 transportation vehicle for sure. And similarly, our world, it changes quickly, right, 0:07:37.800 --> 0:07:40.560 There's always something new that were supposed to be considering. 0:07:40.600 --> 0:07:43.560 There's new diets, there's new kids toys. I was shocked 0:07:43.600 --> 0:07:46.040 at the latest toy that probably got that like makes potions, 0:07:46.400 --> 0:07:50.120 and it's there's never an end to the iterations on 0:07:50.200 --> 0:07:52.720 kids toys. There's always something fancy or knew that they want. 0:07:52.880 --> 0:07:55.040 There's new gurus out there, pitching new products. I mean, 0:07:55.720 --> 0:07:58.200 our world is constantly changing and there's always something new 0:07:58.280 --> 0:08:01.640 to grab our attention, and there's also new investments. But 0:08:02.040 --> 0:08:04.600 is the new stuff better than the old stuff? Almost 0:08:04.600 --> 0:08:07.400 always answers no. And so today we're going to discuss 0:08:07.440 --> 0:08:09.840 how to be a great investor, and particularly in a 0:08:09.880 --> 0:08:12.680 world where there's so many new fangled offerings, there's so many, 0:08:12.800 --> 0:08:14.640 there's so much more for us to choose from. How 0:08:14.680 --> 0:08:17.320 do we stay the course and make good decisions when 0:08:17.440 --> 0:08:19.800 everything around us is changing? What what seems like all 0:08:19.800 --> 0:08:22.240 the time. That's right. Even though there are all those 0:08:22.280 --> 0:08:25.680 new forms of micro transportation, fact is, we both still 0:08:25.720 --> 0:08:29.720 have our leg powered bikes that are set up here 0:08:29.760 --> 0:08:32.760 on the walls in our office. Um, And it's not 0:08:32.800 --> 0:08:35.480 that technology or like the advanced advancements that we've seen 0:08:35.480 --> 0:08:37.360 in our world. It's not that it's all bad. Right, 0:08:37.400 --> 0:08:40.080 And in particular when we're talking about investments, there have 0:08:40.240 --> 0:08:42.320 certainly been some like there are there are some pros 0:08:42.559 --> 0:08:46.160 to things changing and things evolving. Accessibility that folks have 0:08:46.240 --> 0:08:48.520 not to be able to invest is great. Uh, you 0:08:48.520 --> 0:08:50.680 don't have to know somebody, You don't have to hop 0:08:50.679 --> 0:08:52.760 on the phone and call up the brokerage and actually 0:08:52.760 --> 0:08:55.200 place in order. Those advancements are good. Uh. The fact 0:08:55.240 --> 0:08:57.199 that fees don't exist, like, that's a good thing as well. 0:08:57.559 --> 0:09:00.120 But like, there really are a lot more crap your 0:09:00.120 --> 0:09:02.760 investments out there though. Uh. And there's also been a 0:09:02.760 --> 0:09:07.319 proliferation of not so awesome investment advice as well. It's 0:09:07.320 --> 0:09:10.160 a constantly changing space. Uh, there's a wider range of 0:09:10.200 --> 0:09:12.800 options available to us. We actually discussed this back in 0:09:13.120 --> 0:09:17.240 episode four forty six, where we talked about investing in farmland, 0:09:17.280 --> 0:09:20.960 investing in wine, investing in art and whiskey. And that's right. 0:09:21.600 --> 0:09:23.800 I prefer to drink it and not invest in it. 0:09:24.000 --> 0:09:26.400 There's a way you can do both it. But these 0:09:26.400 --> 0:09:29.600 new fingled like they're sexier options, right, but they can 0:09:29.600 --> 0:09:32.720 throw us off our game, and it's difficult to address 0:09:32.760 --> 0:09:35.160 every single product that's out there. We like, we certainly 0:09:35.160 --> 0:09:38.480 weren't able to cover all of the alternative investment products 0:09:38.480 --> 0:09:40.480 out there on that episode. I'm sure there's a bunch 0:09:40.640 --> 0:09:42.440 that we haven't even heard of, and I know that 0:09:42.480 --> 0:09:45.440 there are plenty more that will be invented in the future, 0:09:45.640 --> 0:09:48.160 and so we wanted to make sure that you are 0:09:48.200 --> 0:09:52.200 able to cultivate and then embody the characteristics of what 0:09:52.280 --> 0:09:54.920 it takes to be a great investor so that you'll 0:09:54.920 --> 0:09:58.440 be able to make wise decisions with your money, even 0:09:58.480 --> 0:10:01.520 in an era where there are our potential investment options 0:10:01.559 --> 0:10:03.960 at your disposal. We want you to know why it 0:10:04.040 --> 0:10:06.160 is that you are investing, because in the fact is 0:10:06.200 --> 0:10:08.080 like Joe and I were doing the show, but we 0:10:08.120 --> 0:10:10.800 may not always be here for you. There might come 0:10:10.800 --> 0:10:14.719 in a day. That's why we have life insurance like 0:10:14.880 --> 0:10:17.480 a policy genius. But we're planning to be here and 0:10:17.520 --> 0:10:19.760 we want to be able to continue to to be 0:10:20.040 --> 0:10:23.600 sort of like your partner as you advance along, as 0:10:23.600 --> 0:10:26.440 you travel down the personal finance path, as you're seeking 0:10:26.520 --> 0:10:28.880 financial freedom. But we may not always be there. That's 0:10:28.880 --> 0:10:32.079 all I'm saying. It's true, it's true. That's the ultimate reality. 0:10:32.120 --> 0:10:34.840 But the I want to say what this episode isn't, Matt, 0:10:34.880 --> 0:10:36.880 because I think you might read the title and you 0:10:36.960 --> 0:10:39.120 might say, well, the key characteristics of great investors. They're 0:10:39.120 --> 0:10:42.559 going to talk about the individuals who are great and investing. 0:10:42.600 --> 0:10:45.720 The greats we can replicate what they did and know 0:10:45.840 --> 0:10:47.360 the goal of this episode is not to turn you 0:10:47.400 --> 0:10:50.120 into the next warm buffet, the next Charlie Munger or 0:10:50.160 --> 0:10:51.840 the next Peter Lynch. And you might say, I don't 0:10:51.840 --> 0:10:54.079 know who any of those people are, and that's okay, 0:10:54.240 --> 0:10:57.880 I don't need to. But those are individuals who have, 0:10:58.080 --> 0:11:01.240 over a long time span, out performed the market, even 0:11:01.280 --> 0:11:03.559 though that's really really hard to do. If we were 0:11:03.559 --> 0:11:06.280 to create some sort of mount rushmore of greatest investors 0:11:06.320 --> 0:11:08.520 like those, those three guys would probably be on it. 0:11:08.679 --> 0:11:10.960 I don't know who else we would include necessarily, but 0:11:10.960 --> 0:11:12.839 it's widely accepted that those are three of the greatest 0:11:12.880 --> 0:11:15.360 investors to have ever lived. And you know, most of us, 0:11:15.400 --> 0:11:18.040 we've got jobs, we've got families. We're just not interested 0:11:18.080 --> 0:11:20.920 in nor are we even equipped to start competing on 0:11:20.960 --> 0:11:23.200 their level, to even seek to rival what they've done. 0:11:23.520 --> 0:11:26.120 But the good news is that's not necessary for us 0:11:26.120 --> 0:11:28.440 to achieve our financial goals. That there are certain key 0:11:28.480 --> 0:11:31.360 things we can learn from folks like them and we 0:11:31.400 --> 0:11:34.520 can implement into our own lives, increasing the possibility that 0:11:34.559 --> 0:11:36.880 we're able to get out of our own way in 0:11:36.960 --> 0:11:39.600 order to watch our investments grow over the years and 0:11:39.640 --> 0:11:41.360 over the decades. But I just want to mention that 0:11:41.360 --> 0:11:44.520 we don't necessarily need to be exactly like these folks, 0:11:44.520 --> 0:11:47.480 we don't necessarily need to become professional investors, but we 0:11:47.480 --> 0:11:49.040 would say there's still a lot that we can learn 0:11:49.040 --> 0:11:51.360 from the way they go about their jobs. Sure, there's 0:11:51.360 --> 0:11:53.840 a way that you can continue living your life and 0:11:53.840 --> 0:11:56.280 the life that you want to lead and live without 0:11:56.559 --> 0:11:59.400 you know, becoming a total nerd, which is what it 0:11:59.400 --> 0:12:02.880 takes to be uh, the very very best investor. But 0:12:02.920 --> 0:12:05.800 one of the characteristics that we think is really important, 0:12:06.040 --> 0:12:07.800 body is that you need to be hungry to learn 0:12:08.240 --> 0:12:10.760 and specifically learning from others. That is one of the 0:12:10.760 --> 0:12:14.040 biggest keys to success. You don't need to reinvent the 0:12:14.040 --> 0:12:17.560 wheel if you can pattern your investing game after the 0:12:17.600 --> 0:12:19.520 best folks out there, you know, and not the ones 0:12:19.559 --> 0:12:22.160 who who say that they're the best, like on YouTube 0:12:22.160 --> 0:12:25.319 and TikTok. Those platforms are full of those folks. A 0:12:25.360 --> 0:12:26.880 lot of a lot of big heads out there, man 0:12:27.000 --> 0:12:29.240 telling people that you've got to follow their plan in 0:12:29.360 --> 0:12:32.240 order to succeed, and that's pop Yeah. And we're also 0:12:32.240 --> 0:12:34.520 not saying twice this episode, I think so, yeah, you've 0:12:34.520 --> 0:12:39.160 already hit your one poppy cock per episode limit. Uh, 0:12:39.200 --> 0:12:42.200 And like we're also not talking about just finding a 0:12:42.240 --> 0:12:45.200 single individual, right like like a guru and following them 0:12:45.240 --> 0:12:47.120 to the ends of the earth. That's more cult like 0:12:47.200 --> 0:12:49.719 behavior that we are not in favor of. What we're 0:12:49.760 --> 0:12:52.760 talking about is using time tested wisdom that has accumulated 0:12:52.800 --> 0:12:55.599 over the decades and over the centuries um. And it 0:12:55.880 --> 0:12:58.560 can also be helpful to find a group of folks, 0:12:58.640 --> 0:13:01.920 right like a hive mind of individuals who are dispensing 0:13:01.960 --> 0:13:05.040 information that you can trust on a regular basis that 0:13:05.080 --> 0:13:08.000 tends to work together in order to inform sort of 0:13:08.160 --> 0:13:11.520 a cohesive strategy. We think that that will make a 0:13:11.559 --> 0:13:14.560 massive difference for you moving forward as well. It makes 0:13:14.640 --> 0:13:16.959 I mean, specifically, we talk a lot about the how 0:13:16.960 --> 0:13:19.800 the money Facebook group, the ability for folks who share 0:13:19.840 --> 0:13:23.720 a lot of common goals, right like, the actual ends 0:13:24.040 --> 0:13:27.400 that they're seeking after might vary slightly, but the means 0:13:27.440 --> 0:13:30.400 to get there are oftentimes very similar. And that's what 0:13:30.440 --> 0:13:32.760 I love about personal finances, that we we all can 0:13:32.800 --> 0:13:35.839 take a very similar path, a similar strategy, even if 0:13:35.920 --> 0:13:38.360 our end goals are slightly different. Yeah, and even if 0:13:38.400 --> 0:13:40.600 our particular situations look a whole lot different, if our 0:13:40.600 --> 0:13:43.280 income is differently, if we live in opposite parts of 0:13:43.280 --> 0:13:45.960 the country or even different different countries like, there are 0:13:45.960 --> 0:13:48.240 a lot of similar principles that we can adopt and 0:13:48.360 --> 0:13:51.320 put into practice. And so, yeah, Matt, you mentioned basically 0:13:51.360 --> 0:13:53.960 the first characteristic is being hungry to learn or being 0:13:53.960 --> 0:13:58.040 thirsty for knowledge, right, because information builds on itself and 0:13:58.440 --> 0:14:00.520 we're all indebted to those who have gone but for us, Right, 0:14:00.640 --> 0:14:02.800 I'm thankful that that we can iterate based on the 0:14:02.840 --> 0:14:05.720 discoveries and the inventions of others without having to start 0:14:05.800 --> 0:14:09.160 over from square one, because the reality is knowledge really 0:14:09.200 --> 0:14:11.560 can get lost over time if we're not vigilant, Like, 0:14:11.720 --> 0:14:13.400 is there anybody out there who knows how to build 0:14:13.440 --> 0:14:15.679 a pyramid these days? Uh? Like one of the great 0:14:15.880 --> 0:14:18.760 Egyptian pyramids? No, Like nobody knows how to do that. 0:14:18.760 --> 0:14:21.240 That knowledge has actually been lost, like it wasn't transmitted 0:14:21.280 --> 0:14:24.760 down to future generations. And that's a really important thing 0:14:24.800 --> 0:14:27.680 to realize, Like, we're fortunate the level of information we 0:14:27.760 --> 0:14:30.640 have available to us as investors, Like it can be overwhelming, 0:14:30.720 --> 0:14:33.600 but we should also be pretty thankful because there is 0:14:33.640 --> 0:14:35.560 a whole lot that we can learn in less time 0:14:35.560 --> 0:14:38.200 than ever because of what's at our fingertips, and that 0:14:38.320 --> 0:14:41.360 maybe real quickly we should discuss our biggest influences because 0:14:41.880 --> 0:14:43.520 we've actually been able to have a lot of them 0:14:43.520 --> 0:14:45.960 on the show. Sadly, Warren Buffett still hasn't responded to 0:14:45.960 --> 0:14:48.160 our emails, but a lot of the other folks who 0:14:48.240 --> 0:14:50.320 have come on the show, we would we would say 0:14:50.360 --> 0:14:55.520 they're worthy of you listening to regularly reading, reading their 0:14:55.560 --> 0:15:00.680 books or blog posts or whatever. Morgan Household, Clark, Howard, A. L. Collins, 0:15:00.720 --> 0:15:02.920 Ben Carlson. There there are a few of our favorite 0:15:02.920 --> 0:15:05.600 money writers and thinkers. We've had the good fortune of 0:15:05.640 --> 0:15:08.040 having each one of them on How the Money. That's right, 0:15:08.280 --> 0:15:11.120 Warren Buffett and Jack Bogle they are from there, from 0:15:11.120 --> 0:15:13.200 an even more distant generation. So those guys have been 0:15:13.200 --> 0:15:15.880 around for decades and decades and we haven't had them 0:15:15.880 --> 0:15:17.640 on the show, and sadly Jack Bogol is no longer 0:15:17.680 --> 0:15:21.720 with us. But their thoughtfulness about investing has been invaluable 0:15:21.800 --> 0:15:25.240 to informing how we view investing. We haven't created these 0:15:25.280 --> 0:15:27.040 concepts out of thin air like Matt and I. We 0:15:27.080 --> 0:15:31.400 didn't just stumble upon our own investing philosophy through self actualization. 0:15:31.760 --> 0:15:35.280 This is really has been a project of many years 0:15:35.360 --> 0:15:38.440 of reading and learning from the wisdom of others. Yeah again, 0:15:38.520 --> 0:15:41.760 you don't have to reinvent the wheel, right because chances are, like, 0:15:41.800 --> 0:15:43.960 if you wanted to, you could self actualize your way 0:15:44.000 --> 0:15:48.280 into a winning strategy. Perhaps there is a chance that 0:15:48.320 --> 0:15:51.640 things don't pan out very well, uh, depending on your 0:15:51.920 --> 0:15:54.720 proclivity to learn and to make the right decisions. But 0:15:54.760 --> 0:15:56.880 if you're a smart individual, if you're willing to not 0:15:57.000 --> 0:15:59.480 make decisions based on your emotions, there is a chance 0:15:59.520 --> 0:16:02.760 that you could just isolate yourself, look at the data, 0:16:02.880 --> 0:16:06.560 and make the right decisions. But why like, why would 0:16:06.600 --> 0:16:09.440 you be off in the corner by yourself kind of 0:16:09.480 --> 0:16:11.560 spending your wheels when you can just look at these 0:16:11.600 --> 0:16:15.240 proven methods, these proven paths that are well worn that 0:16:15.520 --> 0:16:17.600 I mean millions of people have taken in order to 0:16:17.600 --> 0:16:19.920 grow their wealth. That's why it's important to to be 0:16:19.960 --> 0:16:21.720 able to learn from others. Well, maybe you read that 0:16:21.840 --> 0:16:24.040 Robert Frost poem and you're like, I'm gonna want to 0:16:24.040 --> 0:16:26.720 go the road less traveled, and in some cases that 0:16:26.880 --> 0:16:28.560 is the way to go in life. But when it 0:16:28.560 --> 0:16:31.800 comes to patterning your investing decisions, like, you don't necessarily 0:16:32.320 --> 0:16:34.480 want to go the road less traveled, Exactly, it's gonna 0:16:34.480 --> 0:16:38.040 be boring. Is better to be the route for misery exactly. Yeah. 0:16:38.080 --> 0:16:39.920 And you know, not only should we learn from history 0:16:39.960 --> 0:16:42.760 and the experiences of others, we think it pays to 0:16:42.760 --> 0:16:45.840 be constantly curious as we're looking to learn from everything 0:16:45.840 --> 0:16:48.080 around us. We want you to be like a sponge 0:16:48.280 --> 0:16:51.560 that's constantly soaking up the nuggets of wisdom that you 0:16:51.720 --> 0:16:54.560 encountered every day. But not only is it important to 0:16:54.640 --> 0:16:57.560 learn and understand what's going on in the world, but 0:16:57.680 --> 0:17:01.920 understanding yourself is just as important. Increasing yourself awareness is 0:17:01.920 --> 0:17:05.119 a vital part of increasing your knowledge, where you know, 0:17:05.200 --> 0:17:07.840 you're recognizing that they're they're gonna be limits to what 0:17:07.880 --> 0:17:10.000 you can know, to what you can do. It's it's 0:17:10.000 --> 0:17:12.440 not difficult for us to begin to think that we're 0:17:12.560 --> 0:17:15.760 smarter than than we actually are. But the reality is 0:17:16.040 --> 0:17:18.480 that the more you learn, the more you realize that 0:17:18.560 --> 0:17:21.000 you don't actually understand. I remember people saying that when 0:17:21.000 --> 0:17:22.159 I was in my early twenties, and I was like, now, 0:17:22.160 --> 0:17:23.479 I'm pretty sure I'm gonna learn a lot and I'm 0:17:23.480 --> 0:17:25.960 gonna know it at all. And it is true, though, 0:17:26.000 --> 0:17:27.959 the more you learn, you're like, wow, there's still a 0:17:28.000 --> 0:17:30.680 lot to be It almost like heightens your sense of 0:17:30.760 --> 0:17:33.920 humility because you realize how much you don't understand. Sure, 0:17:33.960 --> 0:17:35.560 it's it's sort of like you're walking along with a 0:17:35.600 --> 0:17:38.399 torch and like when you're younger, you think that, oh no, 0:17:38.520 --> 0:17:41.560 when I specifically, I'm thinking of like the old school Zelda, 0:17:41.640 --> 0:17:43.440 because like you create the map, you know, like as 0:17:43.480 --> 0:17:46.080 you go into these certain areas. Um. But it's it's 0:17:46.119 --> 0:17:48.200 as if you think in your earlier years that once 0:17:48.240 --> 0:17:51.480 you discover the boundaries of the level, or you know, 0:17:51.600 --> 0:17:53.680 once you figure out where all the walls are, then 0:17:53.880 --> 0:17:55.360 it's all you gotta do is just kind of fill 0:17:55.359 --> 0:17:58.120 in the gaps, right, But in reality, instead of there 0:17:58.119 --> 0:18:00.560 being walls, there's just more doors there. There are always 0:18:00.560 --> 0:18:04.480 going to be more doors and more arenas or industries 0:18:04.520 --> 0:18:06.840 that you could learn more about. I'm so glad you 0:18:06.960 --> 0:18:09.800 brought a Zelda reference. It's here, I mean this episode 0:18:10.400 --> 0:18:12.520 reference before. I don't know, but that was one of 0:18:12.520 --> 0:18:15.680 the classics. Man, it really was the gold the gold cartridge, 0:18:15.720 --> 0:18:18.080 that's right. Remember you had always like blow on it 0:18:18.119 --> 0:18:20.800 in order to if it wasn't working, that does build up, 0:18:20.880 --> 0:18:23.600 blow like it, run your finger across it. Yeah, I 0:18:23.600 --> 0:18:25.200 don't know the last time I played the video games 0:18:25.320 --> 0:18:27.160 all the tricks. I don't even know how they work 0:18:27.280 --> 0:18:29.680 or what games are hot these days. But the reason 0:18:29.720 --> 0:18:31.919 I mentioned that mention this is because it's actually a 0:18:32.000 --> 0:18:36.359 helpful realization. Obviously, by you realizing that you don't know everything, 0:18:36.400 --> 0:18:37.880 this is going to keep you from trying to make 0:18:38.000 --> 0:18:40.760 investing decisions with hubris. And you know, we're kind of 0:18:40.760 --> 0:18:43.480 talking about humility here, which we feel is is another 0:18:43.600 --> 0:18:46.840 great characteristic to possess when when you know yourself better, 0:18:47.200 --> 0:18:50.680 you can be humble. Um And and not only is 0:18:50.760 --> 0:18:53.720 it important to realize what it is that you don't know, 0:18:54.000 --> 0:18:57.919 but it's important to understand your natural inclinations and how 0:18:57.960 --> 0:19:00.159 it is that you behave. And the reason I and 0:19:00.200 --> 0:19:02.000