Oct 23rd, 2006 by Martin Lee
|I just finished watching a talk given by Warren Buffett at the University of Florida. Watch the free video above for yourself to learn some of his thinking! I have written fragmented snippets of some of the things that he talked about below.|
If you were graduating and were asked to pick someone from your class who will most likely succeed, what most of us will choose.
His thoughts on investing in Japan.
“Time is the friend of a wonderful business; but the enemy of a lousy business.”
His adversion of using leverage no matter how good the odds are.
“To risk something that is important to you for something this is not important to you is foolish. You only have to get rich once.”
His involvement in Long Term Capital Management.
“Work in a job that you love, and not something that will look good in your resume.”
He buys business that he can understand, with a moat around it and with honest and able management. If he’s unable to see them 10 years from now, he won’t buy it.
This point is worth pondering:
Everyone has a circle of competence when it comes to understanding businesses. It might be 20 stocks or 50 stocks out of the thousands of listed stocks. It is not how big your circle is, but how you stay inside the circle!
Activity versus inactivity.
What he will do if given a chance to live all over again.