I remember watching an interview with Warren Buffet on CNBC TV last night. Maybe it is an old interview but I do not remember seeing it before. I recall Mr. Buffet saying that he does not visit companies before buying them. Warren Buffet invests using financial information only. I recall some of Warren Buffet's investment rules, or perhaps they are life rules: 1) Buy a business that has a large barrier to entry. The analogy presented on TV was that of a moat. Something that prevents or discourages competition and gives the business a competitive advantage. 2) Avoid debt. 3) Save and invest. 4) Invest in business that have extremely competent owners and management. I recall Mr. Buffet referring to such managers as "400 hitters". 5) I am summarizing here: Avoid the noise and confusion of wall street. Mr. Buffet finds someplace where he can think clearly (Omaha). Mr. Buffet is looking for one good idea per year. 6) [paraphrasing] Enjoy life and make yourself happy. Be content with what you have. 7) Live below your means. 8) Buy at a good price. 9) I recall Mr. Buffet being very concerned that management be ethical and honest. Did anyone else watch the interview last night? If I missed anything or made a mistake please correct me. I am surprised by the simplicity of Warren Buffet's approach.
Yeah, I saw it too. I found it interesting that when they showed him the stack of books written about him or his investment philosophy he said that he didn't make any money off of them. I had thought that any book that used his name in the title would have had to have permission from him and probably pay a royalty. Also, the college course offered in Missouri would have been neat to have had when I was in school, just to get the picture of him whispering his advice in my ear, lol.
It's funny bumping in to him around town. Just a happy guy. His house is very modest. Buy a share of BRK(A or B) and see you in May. Great discounts for shareholders at Borsheim's and NFM to boot!
For your kids (but I would learn from it too!) http://www.tvsquad.com/2006/02/09/hey-kids-its-warren-buffett/ "The Secret Millionaire's Club" It's a series for kids that teaches them the right thinking about investing. Not the lotto ticket buying solution. He provides the voice and has story line approval. When asked if now moving to glamorous Hollywood he said, "no, there's no money in it."
probably 10% of Omaha are paid to be Warren's bodyguards. When you see Warren strolling happily through a street keep in mind that 20 "bystanders" will happily take a bullet for him.