Finding Compounders

My favorite Buffett investment: Delta Duck Club. - $2.8 million market cap (4x earnings). - 13% dividend yield. - Oilfield remained active for 50+ years.

Sequoia Fund - Top 10 holdings Source: Q2'26 letter

Warren Buffett invested $488 million in PetroChina after only reading their annual report . No site visits and no calls to management. A shareholder then asks him if just reading an annual report is enough to make an investment Listen to his answer

Li Lu sharing some investing wisdom Munget taught him: "Munger's fifth point is that investing is like fishing: you have to fish where the fish are. The two rules of fishing are: Rule number one, fish where the fish are. Rule number two, never forget rule number one." "You don't need to understand the entire macro economy, nor do you need to figure out all 100,000 lakes in Minnesota... You just need to know your own small pond, which pond has the fish you can catch... The best scenario is that you're the only one fishing there, and nobody else even knows about it. That guarantees you'll catch the most fish." Alpha is generated by avoiding efficient arenas entirely and building a monopolistic understanding of a niche where mispricing is guaranteed.

Peter Thiel:

Highest earning celebrities in 1998.

Compare to this to the Buffett Partnership Holdings in 1962

What a joke Buffett was. 53% in one stock? Survivorship bias.

Holding losers is easier than holding winners because losers always look cheap.