Mikä tekee Buffetista mestarin?
Buffet ja hallitustyöskentely
- Spend less than you make.
- With his first loss Warren learned three lessons: One lesson was not to overly fixate on what he had paid for a stock. The second was not to rush unthinkingly to grab a small profit. And third was about investing other people's money. If he made a mistake, it might get somebody upset at him. So he didn't want to have responsibility for anyone else's money unless he was sure he could succeed.
- Valuing is not the same as predicting.
- In the short run, the market is not a voting machine. In the long run, it's a weighting machine.
- There are only three ways the stock market could keep rising at ten percent or more a year. One was if interest rates fell and remained below historical levels. The second was if the share of economy that went to investors, as opposed to employees and government and other things, rose above its already historically high level. Or, the economy could start growing faster than normal. It's "wishful thinking" to use optimistic assumptions like these.
- Although innovation might lift the world out of poverty, people who invest in innovation historically have not been glad afterward. "There were two thousand auto companies: the most important invention, probably, of the first half of the twentieth century. It had an enormous impact on people's lives. If you had seen at that time of the first cars how this country would develop in connection with autos, you would have said, "This is the place I must be". But of the tho thousand companies, as of a few years ago, only three car companies survived. And, at one time or another, all three were selling for less than book value, which is the amount of money that had been but into the companies and left there. So autos had an enormous impact on America, but in the opposite direction on investors."
- "It's wonderful to promote new industries, because they are promotable. It's very hard to promote investment in a mundane product. It's much easier to promote an esoteric product, even particularly one with losses, because there's no quantitative guideline".
- "Money could make me independent. Then I could do what I wanted to do with my life. And the biggest thing I wanted to do was work for myself. I didn't want other people directing me. The idea of doing what I wanted to do every day was important to me".
- "Be fearful when others are greedy, and greedy when others are fearful".
- Munger was always asking people, "what is the best business you've heard of?"
- Munger put not just his whole partnership, but all the money he had, and all that he could borrow into an arbitrage on one single stock, British Columbian Power.
- Buffet and Munger defined risk as not losing money. To them, risk was "inextricably bound up in your time horizon for holding an asset". Someone who can hold an asset for years can afford to ignore its volatility. Someone who is leveraged does not have that luxury - the investor may not be able to wait out a volatile market. She is burdened by the "carry" that is, the cost and she depends on the lender's goodwill.
- "It's so expensive to be rich" - Malcolm Forbes
- "Wall Street is the only place people ride to in a Rolls-Royce to get advice from people who take the subway."
- Buffet had been especially moved by the logic of Garrett Hardin, a leader of the population control movement, whose 1968 article "The Tragedy of the Commons" laid out the way that people who have no ownership stake in common goods - the air, the seas - overuse and destroy them.
- "I'm not an investor in other people's funds". He was only interested as an owner.
- "Derivatives are like sex. It's not who we're sleeping with, it's who they're sleeping with that's the problem."
- Buffet was of an age and from an era that viewed serving on boards as a quasisocial activity in which deference and politeness held sway. In 1998, that was the boardroom culture throughout America. This culture reflected the reality that the structure of corporate boards gave directors very little leeway with management. "As a director, you can't remotely tell management what to do. All this stuff you read in the press about the board setting strategy is baloney. As a board member, you can do practically nothing. If CEO thinks a director is smart and on his side, he'll listen to some degree, but ninety-eight percent of the time, he'll do what he wants to anyway. Listen, that's the way I run Berkshire."
- "I'm strictly hands-off. You guys run your own business. I won't interfere."
- Investing is laying out money today to get money back tomorrow.
- A stock is a piece of business, not a bunch of number on a screen.
- "You can't do well in investing unless you think independently. And the truth is, you are neither right nor wrong because people agree with you. You're right because your facts and reasoning are right. In the end, that's what counts."
- "If a cross-section of American industry is going to do well over time, then why try to pick the little beauties and think you can do better? Very few people should be active investors."
- "Cash combined with courage in a crisis is priceless."
- Challenged on his decision not to sell financial stocks in the spring of 2008, Buffet said he only sold when a company's competitive advantage disappear, he lost faith in management, or he needed cash.
- "The purpose of life is to be loved by as many people as possible among those you want to have love you."
- "Treat your body like the only car you'll ever own."