The 20 slot investment card

Charlie Munger regularly shares a powerful story about Warren Buffet’s investment advice.

When Warren lectures at business schools, he says, “I could improve your ultimate financial welfare by giving you a ticket with only 20 slots in it so that you had 20 punches—representing all the investments that you got to make in a lifetime. And once you’d punched through the card, you couldn’t make any more investments at all.”

He says, “Under those rules, you’d really think carefully about what you did and you’d be forced to load up on what you’d really thought about. So you’d do so much better.”

“Fewer things done better” is one of those ideas that is 3 things at once – 1) broadly applicable, 2) nearly always great advice, and 3) so bloody hard to actually execute on.