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Peter your investing philosophy is often summed up as buy what you know and there's some truth to that and it's also often way over simplified can you explain what you did mean by that and and what you didn't mean well I it bothers me that people are very dangerous when they invest this word play the market that's a dangerous term but if you do some work do some research know what you own look at the resech look at the balance sheet you if you could add eight and8 get fairly close to 16 you find out this company has lots of debt no cash they're in trouble shouldn't own it so a little bit of research people are careful they buy a refrigerator careful they take a vacation and they they'll put 5 $110,000 some stock to hear on the bus or a party that's dangerous So when you say buy what you know you also thought that the regular investor might be able to get an inside Advantage by sticking to an industry he's familiar with or seeing something that she realizes this is a great product I'm imagine if you were in a mall the last 50 years you would have seen Gap when it was hot you seen lemon was hot we seen what was not hot we seen when they were starting people weren't excited about Gap anymore or or then you do some research say well gee there's a lot of limited stores but we're only 20 you know they can go to 400 so you you you see a company I did really well Dunkin Donut it's a local company I do well with Stop and Shop but people can see that this is really some people showing up or guess the Sunglass Hut no one's there anymore so I mean that's research that's fundamentals so but you don't leave the mall though and buy that day you have to do some more work that's the important Point yeah so today uh there's so much information everywhere information overload does that make it harder for active investors the indexers say everyone's got access to the same information at the same time you can't beat the market well the way you beat the indexes you you avoid the stocks to go down you avoid the steel companies and the oil companies and Sears and Penny and where the companies are deteriorated I mean companies are Dynamic the behind every stock there's is a company these are not lottery tickets so you're trying to find the companies within the s&p500 that are doing better they're going from crappy to semi crabby to good that might take a couple years or they're going to grow for a long time and you're trying to avoid the companies that are going south that's how you beat them or you find some companies outside the sv500 that are that are great comies Cara was not in the sp500 that went up 200 fold there a lot of comes that enter and a lot of their Great Performances before they go in now a lot of people when they're lucky enough or smart enough to a company that's going up they then they take their profits and and you made the case in a book that you should actually hang in there with the really great stocks and you even got a call from Warren Buffett as a result yeah 1989 I'm at home the phone rings and thought one of my friends one of my daughters think six-year-old Andy picked up and said see gu there's a Mr Buffett online I said this got to be a joke I pick it up and this Warren Buffett from om Nebraska you know I read your book my inter rep do two weeks I use a line he said it all about 7 seconds and I said that's great I'd love to do it what what's the line he said I love this it's been waiting to do this when you sell your great companies and add to the losers it's like watering the weeds and cutting the flowers he said I want to put it in he said if you ever come to Brass you don't call me you'll be mud all over Nebraska so did he call him oh yeah SE several times we play bridge together we've had several meetings great guy another point you've made and this is I think particularly relevant 10 years into a bull market is that I think you said more money has been lost anticipating a downturn than actually in the downturn can you explain well obviously the Market's Market's gone up tfold since I stop run mellan so you make more money in the upside the market going be a lot higher than 10 years from now 20 years from now 30 years from now trying to predict the market is really a waste I don't know what it's going to do it can go down when I ran mellin 13 years declined 10% or more nine times the market wow I had a perfect record I went down more than 10% every time whatever the market went down I went down more but over the long term the upside is more than the downside so you're going to say yourself do I need the money in the next month do I need the money in the next year do I have kids going to college do I have a wedding coming up then you're a bad investor if you can keep putting money in you have 5 10 15 20 25 year
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