There is a not so well known story about Warren Buffett. In the 1990’s he went to Solomon Brother’s to meet with the board during the difficult debacle the company was going through. He saw that everyone was exhausted and quickly told everyone, “to go home and get a good night’s rest. We will pick up in the morning.” Even Buffett himself recognizes the importance of a good night’s sleep.
There are some that can go without much sleep and others that swear by getting their eight hours per night. In the end, sleep is important and everyone needs it. There are some traders that wake up four times a night by alarm clock to make sure that all of their positions are okay in the foreign markets. If something is wrong, they are up the rest of the night making sure everything goes smoothly from there on. I don’t know about you, but this doesn’t seem like the ideal situation for me. Sleepy Capital does not want anyone to lose their night’s sleep over a couple of investments they made. In the end, we want simple investment approach that is disciplined, long-term, and focused on finding high-quality undervalued businesses.
This approach extends further than sleeping well. By not having to check your portfolio every ten minutes, or even daily, you have more time to do what you enjoy. You will have less worries, and will have more time to focus on your personal and professional life. Just as you simplify your investment approach, and create more time for yourself – you can simplify your life.
Warren Buffett is again another good example. Despite being worth $63 billion dollars, he lives a simple and frugal lifestyle:
- Warren Buffett today lives in the same house that he bought in 1958 for $31,500
- He’s gone to work in the same office on Farnam Street for the majority of Berkshire’s corporate lifetime as his primary holding company
- He has lived in Omaha for the great majority of his life
- He does not have a set schedule for his day. Most of his days are spent reading and talking on the phone. The breakdown is said to be reading 70% of his work day and 30% on the phone. Other days, reading dominates almost all of it.
- Buffett has been paid the same $100,000 salary for over 25 years
- He is known for his simple tastes. He enjoys Cheery Coke and McDonalds
- Take a look at Berkshire Hathaway’s website. It doesn’t get much more simple than that.
In the end, Buffett’s cares about being happy, and enjoying what he is doing. He has constantly urged for others to do the same. Now, we are not all like Warren Buffett. We have different tastes and preferences (and different brains for that matter), and have different goals. We may not be able to match him in investment success or financial wealth, but simplicity in life, happiness and enjoying what we are doing is all within our immediate grasp. Buffett’s example is something we should all adhere to.
Sleep and invest well.