How does your typical day-to-day and work week looks like ?

I replied the following as an answer to the question on the post title:

Hi G.,

My workday is dedicated mostly to read. Mainly information about the companies I own: SEC fillings; conference calls; investors presentations; company reports; news; blogs… I sometimes email with a group of other investors and friends with whom we once in a while share ideas and information. I also monitor what other relatively famous investors I admire are doing. But there are just a handful I take seriously and I never make investing decisions without investigating by myself.

I mostly focus on the companies I own and where I have more doubts and continually reassess if I should keep on holding them. The good companies I have take care of themselves alone so I mostly focus on the ones that have the higher probability of having permanent capital losses.

I pass quite some time on companies that have had decreases in their share price. If I see that the company is doing Okay and the price fall is not justified I generally add, specially if I consider it to be quite undervalued. That’s the way I have added or bought several of the companies I have. A good company with good return on equity, financially solid and with honest management will probably do well in the future no matter how cheap you bought it. Since I focus on quality companies I do not spend much time thinking about what to sell, if a good company does not get grossly overvalued I just keep it. That saves me time. I don’t have to think so much about what to sell as about what to buy. I therefore focus on trying to find good value and trying to eliminate the positions that are at risk.

I pass long periods of time reading books. Mostly related to economy or investing. That entertains me a lot and makes me improve by leveraging on the experience of others.

I do not dedicate all my time only to investing activities. I sometimes pass days away from investing. In some periods like now after new year, when my kids are in vacation and the river and the weather is great I go swimming with them. Or I just lay on the garden in a hammock and look at the sky and the trees and sleep. Or I cook, or I make jewelry, a new hobby I have, or I play chess (seldom lately because I have the tendency to get addicted by it), write on the blog, etc… I never leave investing completely alone, at minimum I dedicate 3 hours a day to it, it just comes natural, I can not help it nor want to.

Then again most other weeks I pass the whole day just reading about investing with small breaks to the kitchen to eat. Specially during market extremes or when I get obsessed with a company I like. Fortunately my wife supports me with all the practical daily activities. If I did not have her it would be much more difficult to dedicate as much time to it.

Finally I also read about companies I do not have, in part because I enjoy it and also in order to be prepared to buy them if one day they get cheap enough. If you get a couple of good companies a year at good entry points you should do Okay. Companies in average have a lot of volatility in a given year. The difference between the year high and year low is around 50% or more. Therefore if you regularly study and are patient; reasonable; well informed and keep some cash available then you should be able to spot nice companies at good prices, at least sometimes a year, unless the market is too overvalued.

Cheers!
jrv

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About jrv

I was born in Spain and lived in Belgium, Chile, France, USA, Argentina among other places. Currently I am trying to settle down in a wild place. I am "retired", even though now I dedicate more hours "working" for my investments than I ever worked in the real labor market where I used to work in IT and Banking. I am a family man, I have a lovely wife, several sons and one step daughter. I have humble tastes, I like to stay home and read about companies and investments. I started investing at 25 before the internet bubble exploded. I did not know much about investing and liked technical analysis so my results were pretty bad. Fortunately I did not have much to lose. Some years later in 2006 bored of doing only real state investments and with quite a lot of money saved I opened an account in a cheap and excellent online broker and started again. This time I did not want to commit the same mistake, so I decided to follow a model. I heard that Warren Buffett was the best at making money via stocks so I started by reading a lot about him, all of his shareholders letters and several of the books that he recommended. I learned a lot, started applying his investing principles and reading a lot of 10K's. Digested news from lots of different sources. Basically I started buying very good and cheap companies and holding them for ever if possible and if nothing changed fundamentally. When the housing crisis started I was more than 75% cash. At that time I identified good companies at incredibly cheap prices so I invested most of my savings in stocks. In less than I year I doubled. By the second semester of 2009 I turned my software company into an investment vehicle and dedicated myself full time to it. My wife and I decided to change our lifestyle and moved from Belgium to the beach in a wild country. The goal was to keep fixed costs low in order to be able to live with a minimum 6-8% yearly return but specially to move away from the inhuman life of civilization and to have finally some peace and sunny weather to concentrate better on investing. Now I can think and study about companies 60 hours a week and I am doing great. I can finally do what I want full time and can proudly say that I have never been so happy, specially also with my just born 4th son, my other great kids and my sweet wife who supports me fully while I study most of the day and patiently wait for the opportunity to make a swing ! You can learn a bit more about my portfolio by viewing it at www.kuchita.com/view/sumo.php or you may learn more about me and my family by following the link "Author's site" from the menu above.
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One Response to How does your typical day-to-day and work week looks like ?

  1. Cesc says:

    Jrv, I discovered your blog and it’s so great, sometimes I read your comments at sites like Guru focus and Seeking Alpha and really like them.

    I follow long term investing since 2007/8, my favourite investors are Warren Buffett, Peter Lynch, Monish Pabrai, Donald Yacktman and the likes.

    I try to learn everyday, and I think your blog it’ a great site for doing so.

    Your typical day sounds good, you are my hero lol! congrats for your 4th son.

    All the best and keep on writting.

    Cesc

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