Last night I had a dream that Charlie Munger was giving me putting lessons. We were on a putting green – I remember trying a little too hard on my first putt and pulling it just to the left of the cup. I felt embarrassed that I missed my putt in front of Charlie Munger. I can’t remember Munger’s exact words but they were something about mechanics and focusing on a relaxed stroke – that putt went in and I woke up.
This is what you get for reading Berkshire Hathaway’s annual letter right before bed.
My interpretation: Investing and golf are remarkably similar. Your main focus needs to be on process and mechanics. Take whatever the market/course throws your way and stay disciplined – apply your process, think about your shots, do not take too many of them, focus on the things you can control (yourself), don’t be overcome by psychology. You will make bad shots / investments – it’s part of the game, don’t let it ruin your round. If you’re in a rut clear your mind – stay focused on applying your process to the next shot, the next opportunity.
I could go on but you get the idea.