Warren Buffett MBA-Talk
Recently I listened to this very interesting MBA-Talk with Warren Buffett (there are 10 parts):
Warren only invests in stuff that he understands He doesn’t trade, he invests! His main decision making source are Annual Reports He only buys at a “good price” He only buys things with the intention to hold them forever (no rule without exeption) He holds 8% of Coca-Cola and is absolutely certain that the value of Coca-Cola will increase substantially over the next 20 years, i.e. there is no reason to sell He only invests in simple business models (beverages, sweets, chewing gums, insurances). If he doesn’t understand the industry, he doesn’t invest. E.g. he doesn’t invest into technology/internet companies. He can make a purchase decision in 5-10 minutes. He doesn’t overanalyize companies. He doesn’t negotiate very much. When the price that is offered to him is okay, he buys immediately. When he offers a price, it’s often non-negotiable and he expects very fast decisions. He recommends not to listen to stock recommendations. If you do that, you’re playing, and not investing. He still lives in the same house he bought as a 25 year old (see also his bio)
Conclusion: I will definitely read and listen to more stuff of and about Warren! There are some very important lessons to learn! PS: The article What Warren thinks… is also quite interesting! (via Morten)