So $5K per month in present value should be more than enough for retirees who have no dependents to support.
“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie MungerWarren Buffett famously ran a partnership for a small group of investors before turning Berkshire Hathaway into his investment vehicle of choice. He produced extraordinary results for himself and his investors.
"I’ve been through a number of down periods. If you live a long time, you’re going to be out of investment fashion some of the time.”
"This great emphasis on volatility in corporate finance we regard as nonsense. Let me put it this way; as long as the odds are in our favor and we’re not risking the whole company on one throw of the dice or anything close to it, we don’t mind volatility in results. What we want are favorable odds.”
"Each person has to play the game given his own marginal utility considerations and in a way that takes into account his own psychology. If losses are going to make you miserable – and some losses are inevitable – you might be wise to utilize a very conservative patterns of investment and saving all your life. So you have to adapt your strategy to your own nature and your own talents. I don’t think there’s a one-size-fits-all investment strategy that I can give you.”
"Does that mean you should be in an index fund? Well, that depends on whether or not you can invest money way better than average or you can find someone who almost surely will invest money way better than average. And those are the questions that make life interesting.”Regardless of your strategy, Munger makes it clear that having a long-term orientation with minimal activity can be a huge advantage:
"There are huge advantages for an individual to get into position where you make a few great investments and just sit back. You’re paying less to brokers. You’re listening to less nonsense…If it works, the governmental tax system gives you an extra one, two, or three percentage points per annum with compound effects.”A relentless reader, Munger believes that any good investor should spend the bulk of their time in the pursuit of knowledge and understanding:
"I don’t think you can get to be a really good investor over a broad range without doing a massive amount of reading.”
It’s simple, but never easy."Berkshire’s assets have been lovingly put together so as not to require continuing intelligence at headquarters.”