I have been a value investor for over a decade.
My overall aim is to reduce the number of mistakes I make while investing. To achieve that, knowledge of the different subject and their interrelation is essential in my view. Hence, I spend a lot of time reading about different subject matters like accounting, business, maths, strategy, behavioral science, history and last but not the least company annual letters.
Reading helps me find what other people have already figured out, so I do not have to reinvent the wheel as Seneca put it eloquently “Men who have made these discoveries before us are not our masters, but our guides.”
When asked – How much to read, Warren Buffet said “ I just sit in my office and read all day“. When asked how to get smarter, Buffett once held up stacks of paper and said “read 500 pages like this every day. That’s how knowledge builds up, like compound interest.
I constantly see people rise in life who are not the smartest, sometimes not even the most diligent, but they are learning machines. They go to bed every night a little wiser than they were when they got up and boy does that help, particularly when you have a long run ahead of you.- Charlie Munger