3 Quick Snippets on How You Can Succeed As an Investor Today and For the Future – Part 2

Insights about how we can invest successfully for the future can come from snippets from interviews of great investors.

In here, I’d be covering useful portions of interviews from a trio of investors who have demonstrated outsized performance over long periods of time.

I shared the first snippet yesterday and it came from Francois Rochon, the founder and portfolio manager of Giverny Capital.

In here, let me share the second snippet, which is from Jean-Marie Eveillard. Eveillard was the fund manager for First Eagle Global Fund from 1979 to 2004. Over his multi-decade tenure, his fund generated returns exceeding 4,393%, or 15.8% annually.

Let’s jump into some wise words from Eveillard:

“Besides, some of the best analysts I have dealt with have enjoyed explaining complicated situations and how a company could turn itself around and so forth.

I always tell them that they are smart, but the most complication they try to read into the story, the higher the probability that they will make a mistake. I tell them that there is nothing wrong with making money through simple investment ideas.

After all, that’s what Warren Buffett has done for years.”

In this snippet, Eveillard warned against being too clever with our own investment theses. He believes that investing is not about showing how smart we are, but about finding easier ideas that we can take advantage of.

Crucially, he pointed out that Warren Buffett also did the same.

As one of the best investors of our time, Buffett’s approach could be described as “skipping seven foot bars, and stepping over one foot bars.” The concept is about finding a business that we can easily understand where the odds of a good reward outweigh the risks involved.

Again, a smart thesis might not mean better investment returns for us. If we like Buffett’s long term returns, we may want to consider Eveillard’s simple advice as well.

And so concludes the second snippet. Read on for the third tomorrow.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.