In one sentence: A short year-end chat in which Phil and Danielle prefer intentions to resolutions, tell listeners to use 2020 to prepare for the next sale, and argue that good sleep and low stress improve investing decisions.
Key ideas
- Think long term, not yearly. Phil prefers asking what you want for your family over the long run, not setting a goal for 2020. Both dislike resolutions and prefer a few promises kept. [01:00–03:00]
- One simple method. Find businesses you understand, with a durable advantage and good management, and buy when on sale. [02:00–03:30]
- Sales were rare in 2019. Phil says bargains were hard to find in that market, but that they will come, so treat 2020 as preparation. [03:00–04:00]
- Protect your consciousness. Danielle's first intention is deep, unmedicated sleep, citing Matthew Walker's Why We Sleep. Phil likens fatigue to coloured glasses: you don't notice the tint until it's off. [04:00–07:00]
- Better rest, better decisions. They add yoga, meditation, prayer and walking as stress relievers and tie them to better investing. This is their opinion. [06:00–07:30]
How it maps to RuleOne
- Preparation means a list: the watchlist on /stocks/ with fair values already worked out, so a sale can be acted on. See 243 for why waiting in cash is fine.
- No agent or screen feature relates to sleep or stress.
Buffett, Munger and Graham links
- The "wait for the fat pitch" idea comes from Buffett's baseball analogy in his 1997 Berkshire letter and Munger's emphasis on patience; neither is quoted on the show.
Words to know
- Intention: a direction you hold rather than a pass-or-fail goal.
Try this
Write one promise for 2020 about your investing practice (for example, "value one company a month") and add three names to your list at /stocks/.
Check yourself
- Why does Phil treat 2020 as a preparation year?
Answer
He found few bargains in 2019 and expects sales to come, so you should be ready. - Why did Danielle put sleep first?
Answer
She finds rested thinking more creative and sharper, which helps decisions.
Short quotes
"Use 2020 as your preparation time." (Phil, ~03:50, auto-transcribed)