10 things I have in common with Luis Barsi
Have you read the Barsi Letters on the Suno Research website?
Well, that did not read there goes the link: https://www.sunoresearch.com.br/cartas-luiz-barsi/
I think many here know very well who is Luis Barsi.
Barsi is one of the biggest individual investors of bovespa (Brazilian Stock Exchange) and is one of the most famous in Brazil along with Lírio Parisotto.
One of the big differences of the two is that Lírio owns an industry, VideoLar, and I think he got rich through Videolar and not just investing in the financial market. Lírio Parisotto is a medical doctor and was born in a large and poor family in the interior of Rio Grande do Sul and has an incredible biography.
Barsi accumulated a fortune (about U$ 2 billion) by investing in the stock market (this began in the 70’s of last century), so the guy has his merits, he invested in the hardness there in the hall, the voice, stayed in the aquarium, “read the tape”, gave orders there Heat of the crowded lobby of sellers, buyers, brokers, thieves, crooks and journalists.
Nowadays you invest alone in the comfort of your PC and your peace to decide what you are going to buy, it is quite different, you do not listen to cries and comments and hot tips all the time, you do not see sad people, you do not see people Broken crying on the sidewalk, do not see nobody breaking into options and losing everything he had in life right in front of you, those were the old days of bovespa, as some “golden times” would say, And we know that resisting the impulse of the moment in the heat of physical contact is MUCH MORE DIFFICULT. Yes, EUFORIA and DEPRESSION are contagious, and Barsi has also gone through all this.
But what do I, a common poor, almost a handyman, have in common with Barsi?
1 . STOCKS GUARANTEE THE FUTURE
This is the subtitle of the cards. Barsi believes and LIVES it, he already LIVES in his future, which he created, bought, invested and built. Barsi does not depend on the crap of the government, nor the INSS (social insurance), nor the family’s help to retire, he has a lot of money still to live another 8,000 years.
At point 1 I have a lot of agreement with him that STOCKS GUARANTEE THE FUTURE. And this is not a joke, this is very serious.
2. I BELIEVE THAT IT IS POSSIBLE TO BE RICH INVESTING IN SHARES
Barsi believed, worked hard and invested decades and decades (remember that he was not rich), he graduated in Economics (which was never a course that would traditionally leave students rich). He believed and bought the fight, put a face to it and survived for more than 3 decades in a wild and melee market.
I have hit this key here in the blog since forever. NO DISCIPLINE IT IS VERY DIFFICULT to achieve something lasting. Finance is training, training, training, training, training … it’s an eternal workout. If you stop reading books, study your companies, make monthly purchases, Of studying your portfolio (which is actually your retirement being set up bit by bit), everything may go back a little, until you get the guts to fix it again. It’s no use wanting to make money TOMORROW.
The Market was made to take money from the hurried ones and pass it on to the PATIENTS. This is a phrase from Buffet, that Barsi lives very well. If you are an anxious person, go treat yourself, go to sports, go to therapy with a psychologist or psychiatrist, do something to calm down and better, just do not enter the Exchange, because STOCK MARKET IS NOT A CASSINO.
It has a lot to do with discipline, with mental control, with optimism, with a vision of the future, with confidence in what you are doing, with confidence in your choices and waiting for PASSAGE OF TIME.
Being impatient in the stock market and/or investments will only drag you down, lose money, and take bigger steps than your leg. Who is impatient will want to give GREAT HITS. And believe me, the stock market is not poker, an All In can put years of your work in the GARBAGE. STOCK MARKET IS NOT A PLACE FOR LARGE HITS, is slow and always. Quick wealth is an illusion, to deal with derivatives to get rich? It will take GREAT IRON, GREAT.
5. BUY AND HOLD
Barsi is a pure Buy and Hold guy. No clownery with money, derivatives, mini-contracts, whatever. NOTHING. He buys companies to be a PARTNER, something that the wise BASTTER also speaks. The Barsi enters to be PARTNER of the company, to live along with her a project of perpetuity, growth, and remuneration.
Buy and Hold buys the good company and stays in it for decades if it is still good, hardly a true Buy and Holder sells a business, even if it has gotten a little worse or is in a difficult situation. The holder is not sardined to go around selling a company on the first bad news, this is an amateurish thing. And if you are selling your companies based on news, like the recent cases of Petrobras or BR FOODS I have bad news for you.
Barsi, just like any mature person, knows that government retirement, commonly called INSS, sucks. The motivation is: How will I retire in life? Have you ever asked yourself that question? I have.
Who has the right to good retirement in Brazil? Judges, tax auditors, politicians, judges, and senior military officers. The rest of it gets screwed. If you are not in any of these professions, the sky of your future is black and gloomy. How to escape this sad realization? You will have to assemble and execute your plan to retire. The motivation not to screw into the misery of old age should be worth it.
But it is not only to escape a future of hunger, disease, abandonment and helplessness. It is also to build a life of peace, joy, financial security and personal fulfillment. And this you can achieve by investing your money well.
7. CAPACITY TO SAVE
Without saving you will never get far, and the savings have to be monthly. You have to live a SIMPLE AND FRUGAL life to reach your goal.
“Everything I did not use in my personal expenses was directed to the capital market, I always poured with consistency, Fate only lent you some people such as fathers, mothers, brothers, friends, and spouses, BUT ANY OF THEM MAY BE DRAWN FROM YOU AT ANY TIME. Nothing else. So if you are responsible for your old age, treat it well and leave money saved for it, after all, you may become ill and will no longer be able to work a day for logical reasons.
9. DO NOT BE A SPONSOR
If there are two cars for you to buy, which are basically the same thing, with the difference being the only status, one is worth 50,000 and another is worth 80,000 if you buy the 80,000 you are sponsoring Of the company that sells it. This is very easy to see. Two shirts almost equal, one of 50 and another of 100, Will it lead to 100’s? Because? Because you want to sponsor the factory of that company. Two nice and cool watches, one costs 400 and another costs 2500. Will it take 2500? You are a natural sponsor. The government thanks to the almost 1000 who will win only on the tax of this designer watch. And so it goes.
I gave 3 examples, but we know that there are MILLIONS of possibilities, from your toothpaste to your home (yes there are people who like to sponsor a designer building buying an expensive apartment when there are others at 1/3 of the price on the same street and the same pattern). I live in a set of residential buildings where most of the people who live are very low CLT, many workers, low-level civil servants, private sector employees such as salesmen, drivers, taxi drivers, PMs … Yes, these are my neighbors.
10. REINVEST THE GAINS
I’m almost 4 years in bovespa. REINVEST ALL I GOT. Of course, spending the dividends is going to go awry. Dividends are not gifts, they are the part of your wallet that eventually comes out of the giant cake to dribble in your account, just to give the air of grace, must be TOTALLY REINVESTED, nor see, if it falls into the account of the brokerage house I hope to fall my salary , I make a wire transfer, next to the salary with the rest of the dividends that have there and I buy more thing.
To give you an idea, almost 46% of the return on the German index for the last 25 years was due to the reinvestment of dividends. That is, if you spend the dividends here in Brazil, maybe your portfolio will lose even for inflation and you will lose money. This March I will receive almost R $ 5,000 in dividends, what am I going to do with them? Throw a party? Make a barbecue? Travel for 8 days? Buy branded clothes to show that I’m rich there at work? NO!
I will reinvest. Yes, I do. It hurts, the Matrix wants to see you spending and being a slave. Dividing is no joke, without it reinvested you are nothing. If you need money even for an emergency, TAKE THE EMERGENCY FUND, it may be in the savings of your bank or in a CBD with daily liquidity there, yes I know that it yields little, but the function of that there is not “render” is Be your EMERGENCY RESERVE.
Okay, guys, I’ve summarized Barsi’s fortune in 10 small topics to make it very educational for you. There is no secret. The secret is to be simple, economical, disciplined, study your portfolio and your companies, be optimistic and expect the best. No one needs to invent the wheel to get rich, it is possible!
Good luck to all and good investments, Frugal.