The fourth helpful notion is that the best and most practical wisdom is elementary academic wisdom. But there is one extremely important qualificatio… - Charlie Munger

limited partnerships that do some combination of the following: unleveraged investment in high-tech corporations in their infancy; leveraged investments in corporate buyouts; leveraged relative value trades in equities; and leveraged convergence trades and other exotic trades in all kinds of securities and derivatives.

It’s not possible for investors to consistently outperform the market. Therefore you’re best served investing in a diversified portfolio of low-cost index funds [or exchange-traded funds].

For example, buy Walmart when Sam Walton first goes public and so forth. A lot of people try to do just that. And it’s a very beguiling idea. If I were a young man, I might actually go into it. But it doesn’t work for Berkshire Hathaway anymore because we’ve got too much money. We can’t find anything that fits our size parameter that way. Besides, we’re set in our ways. But I regard finding them small as a perfectly intelligent approach for somebody to try with discipline. It’s just not something that I’ve done.