 Part one of the Manger series, General Investing Wisdom. The first quote, if you have competence, you pretty much know its boundaries already. To ask the question is to answer it. So really invest in your circle of competence. That's essential. The more you know about something it could be where you work in, the lower is the risk of investing and the higher are your investment returns. Or take the time to really learn before you invest in a sector market or something like that. Second quote, rationality requires developing systems of thought that improve your betting average over time. So investing should be rational, which means that you have to understand that everything can happen and you have to assess everything in probabilities. That's the only way to achieve sustainable investment success. Third quote, Graham didn't want to ever talk to management. So don't listen to what the management is saying about the company. You might miss out on some stocks, but you won't be misled. You have to be the one that analyzes the facts and makes your own opinion about the facts. Look at sector analysis, look at what's going on, look at different opinions, but try not to listen to management. Never trust the management. Very important quote, what the whole enterprise would sell for if it were available for a private owner. So that's a margin of safety. What would somebody pay to own the whole company? If the stock price is lower than that, then you buy. For a security to be mispriced, someone has to be a fool. It might be a bad day for the world, but a good day for Berkshire. Markets are completely irrational. Mr. Market offers any kind of stocks, any kind of prices. Those go up and down every day in cycles. So really take advantage when others are full and sell you a dollar for 20, 40 cents. Focus on the margin of safety. To quote, the idea of a margin of safety, a Graham precept will never be obsolete. The idea of making the market your servant will never be obsolete. The idea of being objective and dispassionate will never be obsolete. So never be passionate. Always be rational. So Graham had a lot of wonderful ideas. Warren worshipped Graham. He got rich starting accessually from zero, following in the footsteps of Graham. They kept changing the definition of bargain so that they could keep doing what they always done. And this worked out pretty well. Well, Buffett Graham were buying cigar bets in the 1930s and 1950s. However, when Munger came working with Buffett, they started to buy good companies at cheap prices, so not more cigar bets. Who knows what will be the next definition of a bargain. So we have to evolve as the times evolve. Perhaps it will be number of customers, number of subscribers, or who knows what. The great bulk of the money has come from great businesses. So really, where did Buffett and Munger make the money? Great businesses. Try to find a great business as a fair price and that's how you succeed in investing. It's not the bad ideas that do you in. It's the good ideas that get you. You can't ignore it and it's easy to overdo it. So bad ideas, we avoid it as investors. But if there is a good idea that you think it's good, and that idea can trick you. So don't be too optimistic. Always assess everything. Even the best ideas. Look at what can go wrong. Munger concludes with look for high returns of capital over long periods of time. So companies that can produce good returns, a lot of cash that don't need a lot of investments are the best investments because you can enjoy that cash and you can get that cash back.