Daniel Bakalarz

Accounting is the language of business and you need to understand it to appreciate economic value and to assess competitive positioning. Investors face a slew of psychological challenges. Perhaps the most difficult is updating beliefs when new information arrives. Position sizing and portfolio construction still do not get the attention they... See more

Expose yourself to as many different philosophies and processes as possible because you have got to find one that fits your own emotional make up and that helps you be rational when you’re wrong. And do not be a philosopher. Do not be a high priest of investment religion. Be a practitioner.

the ability of  accounting numbers to represent economic value is severely limited. Next, he emphasized that competitive  strategy analysis and valuation should be joined at the hip. The litmus test of a successful strategy is that it  creates value, and you can’t properly value a company without a thoughtful assessment of its competitive ... See more

Thefirst is a fundamental understanding of how a company makes money. The idea is to distill the business tothe basic unit of analysis.  The second dimension is gaining a grasp of a company’s sustainable competitive advantage. A company has a competitive advantage when it earns a return on investment above the opportunity cost of capitaland earns a... See more

On scale advantages, occasionally, scaling down  and intensifying gives you the big advantage. Bigger is not always better.

Of the fifty-odd biases discovered by Kahneman, Tversky, and their successors, forty-nine are cute quirks, and one is destroying civilization. This last one is confirmation bias - our tendency to interpret evidence as confirming our pre-existing beliefs instead of changing our minds.

Investors should always keep in mind that the most important metric is not the returnsachieved but the returns weighed against the risks incurred. Ultimately, nothing should be moreimportant to investors than the ability to sleep soundly at night.

You can pretty much, I think, get an organization and a  team through almost any challenge as long as you can maintain good cohesion.