Striking Hard at the Fat Pitches

GREELEY, Colo. (AFPN) — outfielder Dale Kasel had his finest baseball game as a Falcon, going 3-for-4 with three runs and three RBIs. The Air Force Academy baseball team (5-14) split a midweek doubleheader with the University of Northern Colorado (13-8) on March 16 at Jackson Field here. Photo by Danny Meyer.

We have this investment discipline of waiting for a fat pitch. – Charlie Munger

For investing, I remember having an epiphany, realizing that to be very very honest about my Circle of Competence, that there was only one company where I was really comfortable in concentrating a majority of my wealth invested in.

And that company was Berkshire Hathaway – I simply knew its management, business model, competitive advantages, financial health and valuation extremely well compared to any other company in the world.

Just as Charlie Munger compares every investment opportunity to Wells Fargo, I now compare every investment opportunity to Berkshire Hathaway.

And that’s important, because knowing Berkshire Hathaway very well means that when the Fat Pitch comes, I know when to hit it extremely hard.

For other non-Berkshire Hathaway investments, demanding an even higher hurdle rate on top of Berkshire Hathaway’s prospective returns means that if I were to venture beyond my true Circle of Competence, the large margin of safety would truly insulate me from grave dangers as long as I stuck to Wide Moat stocks.

For relationships, I wrote a checklist 6 months ago of 18 things that I look for in a potential partner. I wasn’t looking for a romantic relationship at the time and I even planned to be single for life, but I figured it would be a tragedy if one day a 10 passed by that would change my mind and I wasn’t able to recognize it and let the opportunity to connect slip.

Those 18 items were:

  • Instant chemistry
  • Consistent
  • Honest
  • Speaks up (Doesn’t play mind games)
  • Humanitarian at heart
  • Thinks critically on how to solve the world
  • Comfortable in her own skin
  • Makes me comfortable in my own skin
  • Good listener
  • Enjoys comedy/humor
  • Materialistic minimalist
  • Enjoys and respects personal space
  • Open to idea of no marriage and no kids
  • Smart
  • Kind
  • Reliable
  • Understands what I mean in English
  • Accepts an absurdist (me) that thinks the world has no inherent meaning yet rebels against it

Deep inside of me though, I was very skeptical. There’s no way in hell anyone could fit all 18 things I look for in a potential partner.

Until I did.

Sensing an once in a lifetime opportunity of meeting a 10, I just knew I couldn’t let this opportunity slip lest I end up on my death bed regretting letting a great opportunity slip because I didn’t have the courage to go for it, so I chose to be very honest and direct with initiating the relationship the moment I confirmed I met my 10.

And as an extremely lucky guy, when I confessed my feelings to her, she also reciprocated.

So at this stage of life, I’m grateful I know what I want in opportunities such as investing and relationships, am patient when no great opportunities show up, and to have the gumption to strike hard at the Fat Pitches when they do pass by.

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