Friday, June 20, 2008

Joseph Frankel Rosenfield

Very interesting read. Thanks goes to Nathan.

http://money.cnn.com/magazines/moneymag/moneymag_archive/2000/06/01/280366/index.htm

The Best Investor You've Never Heard Of FROM A NONDESCRIPT APARTMENT IN DES MOINES, JOSEPH ROSENFIELD--A LONGTIME PAL OF WARREN BUFFETT--HAS TURNED $11 MILLION INTO $1 BILLION. WHO IS HE, AND HOW DID HE DO IT?

Rule Breaker

Rosenfield has broken rules right and left. First of all, he's never had any use for a committee to make investment decisions.

Finally, Rosenfield did as little as possible, seldom buying and almost never selling. In fact, he considers selling to be indistinguishable from error.

And instead of spreading his bets, Rosenfield doubled down.

Lessons to Take Away

Do a few things well. Rosenfield built a billion-dollar portfolio not by putting a little bit of money into everything that looked good but by putting lots of money into a few things that looked great.

Sit still. If you find investments that you clearly understand, hold on.

Invest for a reason. Rosenfield is a living reminder that wealth is a means to an end, not an end in itself.

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