Money Mistake made by Warren Buffet’s 3rd (little known) investment partner

In the 1960s and 70s, Warren Buffet and Charlie Munger had an investment partner Rick Guerin and this investing trio used to interview CEOs together.

In the 1970s, Rick borrowed a ton of money to invest, he was going into debt so he could buy stocks — it’s called margin debt leverage.

During a bear market in the 70s, when the stock market fell a lot, he got wiped out because if the stock market goes down 30, 40, 50%, you’re done, you’re completely wiped out.

Rick was just as smart and talented as Charlie and Warren, but the two always knew that they would get rich so they were not in a hurry.

Warren said Rick was just kind in a hurry to get there so he wanted to borrow money to speed up the process and it blew up on his face.

I would love to get rich overnight but it’s just not how it works. That’s why these get rich quick schemes you just couldn’t trust them ever.

Morgan Housel, Author of New York Times bestseller “The Psychology of Money”