You Have to Fish Where Fish Are - And US Pond Seems Empty (This Was My Biggest "Ahaa" Moment In Investing)!

Listening to some older Li Lu’s podcasts and speeches I hear one of the quotes that seem so simple and straight forward that gets taken for granted and overlooked..

This one came from Charlie Munger who said: “Investing is like fishing, you have to fish where the fish are. The two rules of fishing are: Rule number one, fish where the fish are. Rule number two, never forget rule number one.”

In my head, I was like “yeah, makes sense” but I just continued listening without really realizing that was exactly what I was looking for.

There is no point for me to be looking at overvalued US companies when I can just look elsewhere and find significantly cheaper companies, and if I do a good research they shouldn’t be lower in quality..

I know there is skepticism about other markets within the finance industry, but if we realize every investment carries risk, its just game of numbers..

If we have two exact same companies, and company A is at 30 P/E but it is in US, and company B is in China at 10 P/E, which one has more margin of safety, and which one carries higher risk?

TSM 0.00%↑ is the living proof that risk is acceptable as long as the quality is top notch..