My Time

Saturday, December 15, 2007

Simplicity is the secret to investing

I'm reading the book, the Dhandho investor, by Mohnish Pabrai, and it states:

Simplicity is a very powerful construct.
Henry Thoreau recognized this when he said, "Our life is frittered away by detail... simplify, simplify."
Einstein also recognized the power of simplicity, and it was the key to his breakthroughs in physics.
He noted that the five ascending levels of intellect were, "Smart, Intelligent, Brilliant, Genius, Simple."
For Einstein, simplicity was simply the highest level of intellect. Everything about Warren Buffett's investment style is simple.
It is the thinkers like Einstein and Buffett, who fixate on simplicity, who triumph. The genius behind E=mc squared is it's simplicity and elegance.

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