The key insight is that permanent capital changes your relationship with time. You're not managing to a fund life; you're managing to the life of the business. That means you can make decisions that are bad for the next quarter, bad for the next year, but right for the next decade.
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Most people overestimate what they can do in one year and underestimate what they can do in ten years. But the deeper error is that they plan in one-year chunks at all — the unit of compounding is decades, not quarters.
Jeff Bezos — Amazon Shareholder Letter
You've probably been told that better choices come from more data or sharper reasoning, but neuroscience shows us that our choices are fundamentally emotional. Our feelings are the underlying 'context-setters' on which our rational brain acts. When we avoid certain emotional states, our solution set becomes constrained in ways we may not even be aware of.
Joe Hudson
Leverage is the only way a smart person can go broke. You really can do smart things and have it end in disaster if you introduce time pressure and debt into the equation.
Charlie Munger — Poor Charlie's Almanack