Common stock tailwinds are so strong, you don't want to fool around with getting in and out of the market. Stay invested.
And you can do well even with a "relaxed" philosophy without technical knowledge. As Ben Graham said, the main point is to have the right general principles and the character to stick to them. We're just trying to add something worthwhile to that result (at least five or ten percentage points/year).
Of course, war can ravage business values in losing countries - the US has had an unbroken run - barring that.
1:06:45 Fair value through profit and loss
Agree with Buffett that marking stocks to market via the P&L statement has rendered the P/E ratio of those companies meaningless. That's part of the appraisal process, not the income for the year - those movements should go through other comprehensive income ('OCI') onto shareholders' equity.
Focus on operating earnings to evaluate the business.
3:25:15 Rendering dead horses
Always love this Munger anecdote. The prosperous man at the Omaha Club drinking at 10 AM rendered dead horses - a business with little/no competition.
Try to go where the competition is weak.
3:31:00 Gold CAGR
Is ~0.2%/year since the time of Christ. There's no comparison with productive assets such as common stocks.
Having gone through all three levels of the CFA (to figure out what the professionals are learning), there's very little of practical use for profitable investing. It's more useful for those wanting employment in the fund management industry.
The focus is more on securities' price movements rather than securities' values - it's a different mindset - one we have no use for.