Daniel Bakalarz

The global economy has undergone a substantial change in the past few decades, with intangible investmentsnow dominating tangible ones. But our financial statements and traditional valuation techniques struggle tocapture these changes. Thoughtful investors go the extra step to understand what expectations are priced intoa stock and whether the... See more

One sidelight here: it is extraordinary to me that the idea of buying dollar bills for 40 centstakes immediately to people or it doesn’t take at all. It’s like an inoculation. If it doesn’t grab aperson right away, I find that you can talk to him for years and show him records, and itdoesn’t make any difference. I’ve never seen anyone who became a... See more

On Models: Mathematics:  The Fermat/Pascal system is dramatically consonant with the  way that the world works.  So you have to learn in a very usable way this very elementary math and use it  routinely in life—just the way if you want to become a golfer, you can't use the natural swing that broad evolution gave you. You have to learn—to have a... See more

On stocks:Over the long term, it's hard for a stock to earn a much better return than the business  which underlies it earns. If the business earns 6% on capital over 40 years and you  hold it for that 40 years, you're not going to make much different than a 6% return— even if you originally buy it at a huge discount. Conversely, if a business... See more

make a point of reading material you do not necessarily agree with. Find a thoughtful person whoholds a view different than yours, and then read his or her case carefully. This contributes to being activelyopen-minded.

Almost everyone starts as a value investor. It’s funny, that's where Buffett started. And then Buffett in the early '90s became a growth investor. And so just be open-minded.

You may have noticed  students who just try to remember and pound back what is remembered. Well, they  fail in school and in life. You've got to hang experience on a latticework of models in  your head.  What are the models? Well, the first rule is that you've got to have multiple models—  because if you just have one or two that you're using, the... See more

If I need to do a deep dive, we are not going to invest. You can think of my investible universe as the companies where I don't need to do deep dives because I have been doing due diligence on them for many years or even several decades.