peace of mind

shuiming: The market is down big today, S&P 500 −300 points. BRK.B and AMZN are holding; TSM went down with the other chip stocks. In the past I would feel bad like everybody else. Today I feel happy: better entry points for my 401k and TSM.

CC: For a net buyer, falling prices are good arithmetic. Buffett's 1997 letter: net buyers should cheer a falling market. It holds as long as the buying continues and nothing has to be sold at the bottom.

shuiming: Zero margin, no leverage, solid companies. No more than that.

CC: Without debt, a falling market can lower prices but can't take the shares away. Munger: "Take a simple idea and take it seriously."

shuiming: 20 years looking back, that is the only thing that matters.

CC: Including dividends, the S&P 500 was positive over every 20-year period since 1926; the worst, 1929–1948, returned about 3% a year. That record belongs to the index. A single company has to earn its own 20 years.

shuiming: That is the secret of why Warren and Munger lived so long. Peace of mind is the most important element of health, according to 内经.

CC: 素问·上古天真论：恬惔虚无，真气从之，精神内守，病安从来。是以志闲而少欲，心安而不惧，形劳而不倦。 Few desires: Munger's list of no envy, resentment, revenge or self-pity. The spirit kept within: Buffett's inner scorecard. The body works but does not tire: Buffett still tap-dancing to work at 96.

shuiming: That is why both 内经 and Buffett's letters are on my 天书 list.

CC: Two sources two thousand years apart, one from medicine and one from money, arriving at the same line: 心安而不惧.