Warren Buffett on Investing

If you have an hour and forty-five minutes to spare, here is a concentrated dose of investment wisdom from Warren Buffett, CEO of Berkshire Hathaway (BRK.A:NYSE), at their annual meeting on 2020-05-02.

Buffett provides a historical perspective on why it’s been a poor choice to bet against U.S. businesses in the long term, why only fools trade in and out of the market or take on debt, as opposed to buying good companies with good management (or, for individual investors, a broad-based index such as the S&P 500).

Warren Buffett is 89 years old, but you’d never know it from this video.  Investing in value (as opposed to speculating in day-to-day fluctuations of casino and rigged markets) lets you sleep at night, and living in Omaha rather than the silver towers of gamblers and grifters of Manhattan aids in maintaining perspective on what constitutes a real business with real customers in the real world.

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Author: John Walker

Founder of Ratburger.org, Autodesk, Inc., and Marinchip Systems. Author of The Hacker's Diet. Creator of www.fourmilab.ch.

2 thoughts on “Warren Buffett on Investing”

  1. I remember hearing Buffett talk about his father on C-Span. Buffett loved his father and his father was a man of integrity. Here is a quote of Warren talking about his father, Howard Buffett.

    ‘Unshakably ethical, Howard refused offers of junkets and even turned down a part of his pay. During his first term, when congressional salary was raised from $10,000 to $12,500, Howard left the extra money in the Capitol disbursement office, insisting that he had been elected at the lower salary.’ His wife said he considered only one issue when deciding whether or not to vote for a bill: ‘Will this add to, or subtract from, human liberty?’

    His father was a Republican. He lived to be 60.

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  2. Buffett provides a historical perspective on why it’s been a poor choice to bet against U.S. businesses in the long term, why only fools trade in and out of the market or take on debt, as opposed to buying good companies with good management (or, for individual investors, a broad-based index such as the S&P 500).

    I don’t disagree but current circumstances demand that you work in the short term as well. We continue to invest in our dividend stocks and boy howdy, are we happy we held on to and bought more Microsoft! months ago at $130 but I’ve taken on a little side hobby with day trading one stock and made more money in 4 months than I ever dreamed (bought at $103 as it currently trades at $162). It is a company that immediately reacted to the needs of a coronavirus infected world and yes, other companies are already in this business (FB, Google) but the name of my investment has become a part of daily patois at this point. Know this can’t last forever but I suggest taking advantage of something when it’s hot knowing that you will have to move on some day soon and be on top of it from 9-4 every trade day.

    In the meantime, I’m cautious but having a whole lot of fun.

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