Business Lessons From Billionaire Warren Buffett

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Complete Video Transcript

0:02develop the habits you’ve got to bring part got the energy but develop the
0:06habits a success
0:07they say
0:07change the path
0:08are too light to be felt until are too heavy to be broken
0:15generally speaking investing in yourself is the best thing you can do anything
0:19improve your own top nobody can take that away from me Megan
0:22run up huge deficits in the dollar coming come work for us
0:25you can have all kinds of things happen but if you got talent yourself
0:29I and you maximize your talent I
0:32you’ve got a terrific asset and Senate mean everybody should go to college but
0:35it does mean that anyway you find to improve communication skills are
0:39enormously important
0:40I mean I took Dale Carnegie course that might be a hundred dollars for it was
0:43worth a college degree
0:44I’m least I thought it was Ibiza
0:48you’re welcome people otherwise a
0:54learn the learning up
0:56well you you’ve all got the IQ to do well you’ve all got the initiative and
1:00energy
1:01well with me you wouldn’t be here I and most
1:05love you will succeed and and
1:08in meeting your aspirations a what in
1:12in determining whether you succeed there’s more to what
1:16and then elect energy and I’d like to talk for just a second
1:24think about it think what what can I do
1:28you can’t do now I get to work in a job that I love
1:31but I’m always working two jobs I love it when I’m I love the just as much when
1:35I
1:35when I was a big deal they made a thousand bucks and
1:38I heard you to work in jobs you up
1:44the questions about my
1:45was like how much
1:46have yeah you talk about learning from mistakes
1:50I really believe it better learn from other people’s mistakes as much as
1:53possible but
1:54what we don’t spend any time looking back
1:58at Berkshire at I got a partner Charlie Munger
2:01women pals for forty years never an argument wat disagree on things a lot
2:05but we believe but we don’t we don’t have argument about and
2:07we never look back way just and we just for you so much look forward to that
2:12there’s just no sense
2:13thinking about what we might and it did it just doesn’t make any difference
2:16and you you got only level i forward
2:23a one thousand dollar investment with Warren Buffett fifty years ago would
2:26give you over 25 million dollar return today
2:29he’s the world’s most successful money-maker 20 made it all
2:34by simply investing in the right companies some people are better P
2:38certain things and others and others lobby looks like a lot I can
2:46so I want a simple business easy to understand great economics now
2:50on a stable management and and that
2:53that I can see about in a general way where they’re gonna be ten years from
2:57now
2:57and I can see whether me 10 years not only by basically I don’t wanna buy any
3:02stock
3:03or if they close the New York Stock Exchange tomorrow
3:06for five years I won’t be happy owner i buy a farm
3:10and I don’t get a quote on for five years i’m happy for farm goes okay
3:13and i buy an apartment house don’t get a quote on providers i’m happy if the
3:17apartment house producers the returns
3:19but I expect but people buy stock in a look at the price index morning and they
3:22decide whether
3:23they’re doing well we’re not doing well that’s crazy to buy a piece of the
3:26business
3:27that’s what gramm most fundamental party above what he taught me
3:30no not biased occupy occupy a part ownership in a business
3:34you will do well if the business does well he didn’t pay it only selling price
3:37and that’s what it’s all about and
3:39got a bike doesn’t he understand just like it turbine farm got on my farm
3:43generation and that that its it’s not complicated
3:50you break one
3:52rules and investment diversification I mean everybody’s told
3:55don’t put all your eggs in one basket spread them as widely as possible
3:58you actually do sometimes the put enormous
4:02a number they have in one basket then she I stick with what I know if somebody
4:06owns 50 stocks
4:07can they really liked the one they ragas number fifty as well as the what the 1i
4:11rikers number one
4:12them a note as well I don’t think so and knowing what you do understand I don’t
4:16understand and
4:17that that is the key is to its defining what I call your circle competence
4:20and everybody’s got a different circle accomplish the important thing is not
4:24helping the circle is important thing is staying inside the circle
4:27and if that circles only got thirty companies in our
4:30out of thousands on the big board closure which 30 they are
4:34you’re okay
4:39the best way to get the thank you
4:42to be in a room with no one else in just think and if that doesn’t work nothing
4:45else is going to work
4:46I had the disadvantage being in any kind about
4:51market type environment on wall street would be the extremes that you get over
4:54stimulated
4:55you think you have to do something every day
5:01if you buy a piece of american industry and get a cross-section
5:05you going to do well over ten or twenty or thirty years but
5:08you’re not going to do it right dance in and out every day the Dow Jones average
5:12started
5:13the 20th century at 66 that ended at 11400
5:18it say how could you lose my you put back into her like that a lot of people
5:21that because they tried to dance in and out
5:23so what you’re looking for is some way to get one good idea here
5:29you know and then and then write it to its full potential
5:32and that’s very hard to do with an environment where people are shouting
5:35prices back and forth every five minutes in jumping reports under your nose and
5:39all that
5:39Wall Street makes its money on activity you make your money on an activity
5:49Indonesian you don’t need a lot of brains in this business I mean I’ve
5:52always said you gotta IQ of 160 giveaway 30 points and somebody ask you should
5:56only that investment what you do need is emotional stability
5:59you have to yeah people think independently and they have to be
6:03yet the beast when you come to a conclusion
6:06yet the really not care what other people say and and and just follow the
6:09facts and follow your reasoning and
6:11and thats that stuff for a lot of people
6:17question is large cap for small-cap at all the after that we we don’t think
6:20up we don’t we don’t care whether come as large cap dry cat metal cap small cap
6:25micro cap and the that make any difference in your question houses
6:28can we understand the business do like the people running at and is itself a
6:32price that
6:33as attractive the wonderful business yea
6:36you can figure out what will happen you can figure out when it will happen on a
6:39focus too much on when you want to focus on what
6:41that you’re right about what you don’t have to worry about one very much
6:49when you look at the future there’s also the argument made
6:52that that this is something that goes with your philosophy today
6:57get outta cash and get into assets because we don’t know what’s gonna
7:01happen
7:01to the doc well cash is always a bad investment
7:05a I it won’t be able to cash is king a year ago I met that’s crazy
7:10I’m in cash was in producing anything at was sure to go down in value over time
7:13and they always want to sure you have enough i gotchu you want your church
7:18around
7:18it okay but you don’t have it accessible modular out at that no I much rather on
7:23a good business
7:24I that have cash and it is a hedge against the dollar
7:28well because they all assets are a hedge against the dollar on a lead
7:33the all you know is that the dollar’s going to be worth less
7:3610 20 thirty years from now I say worth
7:39less not working should I i watch yeah
7:43by it will be you know I’m and that’s that’s true love
7:46almost every currency like a leg up a the question is how much
7:49it depreciates in value but
7:55so I would like to be lucky again
7:58and if I
7:58lucky than the way to do it is to play out that game in hand hand and do
8:03something you enjoy
8:04you know your life and the associated with people you like I only work with
8:07people I like
8:08I I don’t I don’t if I can make it a hundred million dollars by
8:12buying a business with some guy because my summer pitcher night say no
8:15because I say that’s just like marrying for money which
8:19probably is never a good idea ariane circumstances but very rich it’s crazy
8:23do I am NOT gonna marry for money
8:26yeah