Top Highlights

• Be patient and selective, saying no to almost everything. Exploit the market’s bipolar mood swings. Buy stocks at a big discount to their underlying value. Stay within your circle of competence. Avoid anything too hard. Make a small number of mispriced bets with minimal downside and significant upside.
• There are no prizes for frenetic activity. Rather, investing is mostly a matter of waiting for these rare moments when the odds of making money vastly outweigh the odds of losing it. As Buffett
• But what resonated most profoundly for Pabrai was the sense that Buffett was true to himself—that he lived in extraordinary alignment with his own personality, principles, and preferences.
• Buffett manages every aspect of his life in ways that mesh with his own nature—from his childish diet (which consists largely of burgers, candy, and Coca-Cola) to how he runs his business. For example, he made it clear that Berkshire’s decentralized structure was never designed to maximize profits: it simply suited his character to oversee Berkshir...
• “Munger says he doesn’t care about being rich. What he really cares about is having independence. I fully endorse that. What the money gives you is the ability to do what you want to do in the way you want to do it.… And that’s a tremendous benefit.”