Buffett snowball by fdjerue7eeu

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									Buffett snowball
Buffett biographer Alice Schroeder, President of Beijing snowball speech


Time :2009-8-11 19:20:01 value investing forum


Moderator: Distinguished guests, ladies and gentlemen, Good afternoon! First of all,
allow me to attend the China Merchants Securities held by the "snowball
rolling wealth" Ms. Alice Schroeder Bank of China theme forum,
distinguished guests and friends to express my sincere gratitude and warm welcome,
thank you! (14: 51)
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Moderator: Let us please a "snowball" Ms. Schroeder, author of
Alice for us to do a keynote speech, Ms. Schroeder had requested! Schroeder has
served as Managing Director of Morgan Stanley, can access private files the first
person to Buffett in 2008, and Federal Reserve Chairman Ben Bernanke and Hillary
Clinton as well as Time magazine as "the most talked about figure
"Ms. Schroeder Below please! (14: 52)
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Alice Schroeder: Thank you very much, thank you for inviting me to participate with
the "snowball - Buffett's wealth of life",
"snowball rolling wealth" campaign, thanks to the China
Merchants Securities and CITIC Publishing House has given me this opportunity to
share with everyone. I and my husband came to China with Mr. Dai Weide, we come
Tuesday, we spend time in China is very happy to see us walk in Beijing found that
Beijing is very beautiful, is the first time I came to Beijing, came to Beijing, I think
Beijing is really a deserved reputation of the international metropolis, while
maintaining the traditional features and style, which is why I love reasons for Beijing.
Mr. Buffett also be my people, and Mr. Buffett's investment has its own
unique views, and Mr. Buffett's view of wealth, life investment point of
view, I also benefited, that is what I write to This book is the reason. Next, I share
with you the specific content of this book. (14: 52)
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Alice Schroeder: I May to participate in the shareholders meeting, when many
shareholders to participate in, I also mentioned in the meeting, Mr. Buffett took five
hours to share his experience, we If the search on the Internet, you can see we have
the AGM minutes and a number of specific key issues. At the shareholder meeting, we
review some previous investment experience, but also with the many discussions with
Mr. Buffett. Mr. Buffett really likes candy, especially fond of ice cream dessert, he
had also had some candy company, producing chocolate and candy, we call it milk,
ice cream candy company later. We started the morning 8:30 meeting, he brought a
box of peanut candy and chocolate, we all share a delicious dinner until 15:30, the
meeting in a relaxed atmosphere, and our office is located Building a shopping area,
there are candy companies, ice cream companies to sell their products. (14: 52)
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Alice Schroeder: I wrote this book in the time that Buffett eat peanut candy, he loves
peanut candy, peanut candy about sold out, Mr. Buffett to eat ice cream, we eat ice
cream, we follow suit, all the ice cream sold out, Buffett has such charm, he do what
we all follow suit. Jiugen to buy stocks, what stocks he bought, we all have to buy, so
many people say as long as Warren Buffett did, and I wanted to do what I do, Warren
Buffett, in the end is what kind of person what? Many people often ask me, in fact,
and television, Buffett appeared on the newspaper is the same? He seems to be
all-powerful person on the Touzi community Haoxiang all know that, but also look
like a loving grandfather, when I write "snowball - Ba Feite Fortune
life" This book, when Buffett sees not the same, but there are several
different Warren Buffett, if the strict properties and characteristics, is nothing more
than to become one of the world's richest people. Buffett also like a child,
always look for her mother's child, he also wants his family's
thoughtfulness and care, etc., so in a "snowball" the book, I
want every aspect of Buffett's character is shown by Let us see a real
Buffett. (14: 52)
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Alice Schroeder: I first met Buffett in 1998, when I was in a 佩尔瑞伯特 securities
company, the main job of the insurance, securities information, my insurance stocks
Analysts are given with the same recommendation to buy or sell, so I am more
concerned about this area, particularly as AIG's stock, as well as major U.S.
insurance companies, like Austad, Jie Nirui Re shares Jie Nirui reinsurance company
stocks that we have done in-depth analysis. Many analysts have shares in this
company were analyzed. But my advice and you are not, I suggest that you continue
to hold, including the Buffett company that the company Howett is a very complex
company. I wrote an article in the spring Hathaway's report, in the report
which I wrote a letter to Mr. Buffett, I do not know whether he will send me a letter I
mentioned in the letter, a request, if We took a group of fund managers or fund
managers or investment neutral people see him, will not see us? We propose to him
and see the side. (14: 52)
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Alice Schroeder: The results Buffett himself made a call to me and said no problem,
you are welcome to. I have never received any such important people like Buffett,
computers, communication was not very well developed, and when I returned to the
office secretary told me that Buffett to call you, I can not believe I let the Secretary of
the calls to me and really dial in the past after Buffett. We do not know his number,
you must know Buffett's private number to call him, if he does not know
who that phone number that time, it will hung out. (15: 15)
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Alice Schroeder: He was originally planned to spend an hour chat with us, and later
spent two hours with us on insurance, then he told us that he likes the insurance
industry, like We discussed with the insurance industry. He then took us to visit the
shopping by car, took pictures with us, joked, took the purse to those people the same.
Buffett is a very amiable man, and he is willing to share his wealth of experience to
others. (15: 15)
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Alice Schroeder: I was not going to see that Warren Buffett, but I for his investment in
the shares of stock analysis report, he actually does not like to deal with these people
on Wall Street because he thought they Wall Street, these people are liars. And he also
think that there is a conflict of interest, and did not have too many people on Wall
Street contacts. He, like many companies doing the same management, if all investors
need information, he will provide information, but no further contact. But after a few
weeks later he called my preparation for an exception, this person told me to talk
about the Hathaway investment company, why did he do, because too much business
the company Berkshire save, on insurance business which he thought (business) too
complex, investors want to get some help to a good understanding of Berkshire save,
investment, he needs through the media and analysts to communicate with investors,
but He is only willing to break the cases, only willing to talk with such an analyst.
Finally, all the analysts, he chose me. At that time everyone asked me why I only
choose me, no choice other analysts? I think I was the only positive for the stock of
my own initiative to provide for him, all the analysts do not provide this information,
so he is the obvious choice, he liked my way of thinking. (15: 15)
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Alice Schroeder: I have written Hathaway was the first report, he invited me to a
private jet, for me is flattered, but this is not everyone thought the same private jet,
private plane The flight attendant did not gave us dinner, gave us such a huge bag of
potatoes, potato chips, I think he ate three hours in these things, this is the first time I
saw him eating so strange style. Since then I wrote his first report. After 2045 I
analyzed for Hathaway stock each month we will talk about the company's
stock, the company's performance. Every now and again I will fly back to
Omaha to talk with the company's situation, but then I am not very familiar
with him personally, I will focus Hathaway stock in-depth coverage and
understanding of the company, then Many consider him as a stock investment, fund
managers. They believe that the transaction price Hathaway Hathaway in fact owned
by the sum of all of its equity investments. Hathaway was a lot of companies holding
shares. Today has been the case. He had 260 billion of assets, almost 100 billion sales.
260 billion in assets, only 20% of the shares he held in the form, while Buffett
personally in charge of this 20% equity investment, so Hathaway company has a large
component is for enterprise management, the whole the company employs more than
32,000 in fact almost making, all have its enterprise management, 50% and
insurance-related, 15% and energy related industries. So he owned these enterprises
and investment, including air compressors, jewelry, shoes, vacuum cleaners, candy,
travel, private charter shared services, their business are numerous, dazzling, this is
their way of companies. At the time, how the company is set up it? I think this is a
very interesting story. (15: 15)
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Alice Schroeder: I started to write analysis report when it is known, 10 years old when
he began to learn to invest in stocks, Buffett is in fact the first company salesman,
when he was 6 years old when selling gum at home around the beginning, from his
grandfather owned a grocery store where buy chewing gum, and then went door to
door, selling chewing gum 5 points each, each selling a pack of gum you can earn 2
cents, when he began to do snowball experience. When he was 7 years old began
selling Coca-Cola in the district where he put all the Coca-Cola on the red
wheelbarrow inside, and he also sold magazines, he earned every penny I saved. He
bought his first stock at age 11, the stock is called C 迪斯普尔菲 special (audio), the
stock is his father's favorite stocks, so he bought the stock. Father is a
stockbroker, he often in his father's office dangling, he heard his father to
sell the customer stock, Buffett was a small, did not understand the stock, but
recommended that he heard his father stocks, he also bought. He bought the stock at
that time not long after the stock plummeted, bought the then 39 U.S. dollars / share,
not long after the stock fell to 28 dollars / share. His sister was 13 years old, Warren
Buffett has been to remind her to follow his brother to do this investment, the result
lost a lot of money, so my sister was not like to do unreasonable things. (15: 15)
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Alice Schroeder: So, Buffett with all the same to the broker in the stock market, when
stocks fall, have been urging the stock brokers do not like to buy the stock. He told his
sister, had been waiting, waiting not long, the stock finally recovered, her sister
recommended sell and make some money. But Warren Buffett has held the stock, in
the end her sister's urging, the stock is sold out. Finally the stock rose to
more than 200 U.S. dollars. From 11-year-old bought this stock, he has been patiently
waiting, if he had not sold earlier, to wait until more than 200 yuan and then sell it,
you can earn more, you can earn 400 yuan, up by 5 dollars in When he sold. He found
himself no patience, no experience. He then began to accumulate from childhood, all
the investment experience affected his life, though he seized the opportunity, but did
not wait patiently, as he later did the same as other investments, and later he felt that
the investment must not rely on impulses . At that time he did this investment for my
sister, has been strange since his sister Dorothy extreme emotional reaction to what he
has done selling. This is his long experience in investing. From the Houwo Lun has
been started to invest in stocks. Wait I will brief you about his educational background
and qualifications. He set up a time when Hathaway company, with a partner the way
he and his sister used to take money invested the way, find a friend, even if there are
errors, the actual investment will not complain or blame him, until he was 21 years
old time, has accumulated a lot of experience. He accumulated 100 thousand U.S.
dollars was invested, was in 1956. From 1956-1970, he put partners to 100, from 10
million to 100 million yuan, in part, through investment, in part through the
company's growth, so that his investment almost 25% per year, 30%,
Sometimes up to 40% growth. He used the so-called "value
investing" investment techniques. Hathaway Corporation was a partner of
the textile company, will close down, he bought this company came to the end of
many businesses, clearing the entire Hathaway company, to get the money for regular
activity performed by the investment, buy insurance , candy companies, bought a
Buffalo newspaper. (15: 15)
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Alice Schroeder: He told me in 1977 when he 47 years old, he thought had reached
their career peak, at Hathaway-owned enterprises still do not like this, has been like
the first seven rankings. But then, he realized that his dream, a snowball rolling over,
but the way he uses the addition, from that time was about to start, to only play 90 to
Dengfeng extreme, he had bought the insurance cover Ke Corporation stock, which is
currently the most Hathaway asset management company. 2 cents from the beginning
of this snowball into a 100 million investment into the company's size now,
he's also owned shares, including American Express, American bankers
and so on large-company stocks, he bought the shares of the principles and When he
was young the principles are the same. (15: 15)
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Alice Schroeder: Buffett for formal education is not very enthusiastic, but he was very
enthusiastic about learning, he had a teacher has to teach him the Jieminggelun
investment. When he was 7 years old, asked his parents can not give him a bond
investment and on investment in bonds, it is his investment in the Enlightenment, so,
he was a child prodigy, not an ordinary child. 7 years old when he had to see the stock
market book, and also do some financial people's autobiography, the
financial section of newspapers, but also concerned about the industry reports. He
hopes to complete control of these operations, until he went to the University of
Pennsylvania to study the time and is very boring, so, finally transferring to the
University 纳布拉加斯 Finally, he applied to Harvard Business School, as the
Harvard Business School in the United States is the most rich reputation of the
institute, to get to know that in the Harvard Business School after the first had many
business people face. At that time, he would like to know commentator. (15: 15)
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Alice Schroeder: But he was rejected by others because it refused, which he considers
his life a very important turning point. If he really read the words of Harvard Business
School, Harvard Business School would find that he did not want to, so when he
applied to Harvard Business School failed, they turned to for Columbia Business
School. In Colombia, he saw a book about value investing, after reading the book of
great enlightenment to him, since then he began to use a variety of technical analysis,
quantitative analysis, found that his investment and without any help, so he was
hoping to find help him invest in the system, because the value of investment in this
book as suddenly as a lightning Taichetaiwu. (15: 15)
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Alice Schroeder: Because he read the Jieminggelun written this book away Columbia
Business School to study. Because of the use of the concept of value investing to sell
fishing rod, fishing tackle company, very successful, after which he followed as his
apprentice in this Jieminggelun learning. The value of this Jieminggelun investment
appears to be simple, but the execution time is very difficult, because he asked
investors have a very good discipline. First, you must be able to lower the value of the
stock purchased under the circumstances. That is, do you think it's higher,
it must be less than the value of its stock price to buy it, but the stock does not
represent the real economy of the business, must be output, rather than a paper , must
think of the stock on behalf of the business behind what. Suppose you really have the
company's stock, became the owner of this enterprise, five or ten years
after your children and grandchildren are willing to continue transmission of this
business, but also children and grandchildren feel that this is a very good business,
How much are you willing to invest? You can imagine a whole family of 5 individuals,
each person has a 20% stake, or if it expanded to more than 100 million. Make an
important principle of value investing is the Jieminggelun said Mr. Market, that the
market itself is very emotional, we all know that market volatility may be very large,
sometimes the market will be too excited, the price is too high, Sometimes the market
is depressed, the stock is undervalued its real value. Therefore, the correct value of the
stock investors have a right to judge, not to buy stocks when the premium, and do not
in others that is the end to buy. Have the concept of safety margin. (15: 16)
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Alice Schroeder: The so-called margin of safety concept, when you invest in should
be according to their own situation, to remain a conservative buffer zone. Once your
decision is wrong, this buffer alienating their injuries are too much damage to their
wealth. For example, the share price dropped below 100 yuan, or tens of dollars, you
can throw or use other means to reduce their losses. Warren Buffett in which the entire
investment career has been concerned about two things: First, he focused on
companies that have the potential, and second, he will definitely find out what their
responsibilities are. I first met Buffett in 1998, when Internet stocks is particularly
high value of the time, that the prevailing hot tech stocks in particular that later on
many media began to criticize Buffett Zhezhong investment theory, he was too
conservative , and his investment philosophy obsolete, erroneous, but also to follow
his investment philosophy of the people that did not make any money, so whatever
performance was not very good endless criticism. Other media described him as
stupid monkeys, and some media criticized him for insulting words. Even Mr. Buffett
did not face a lot of blame to change their investment strategy. (15: 34)
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Alice Schroeder: I remember at that time had a long talk with him, he said that the
negative media coverage, emotionally really hurt, and he saw the media coverage is
also prone to injury, he had a fragile heart. But no matter how emotionally fragile, he
was willing to face such things. Example, despite the media that he was wrong to
criticize him, but he insists that things do what they think. Later proved that he is
doing, such as after the technology bubble burst, we realized that his ideals Buffett
how correct. Investment environment for a few years a series of changes, then there
are some Enron scandal, there is the United States and other accounting firm
WorldCom scandals, some accounting firms to false accounts, I was at Morgan
Stanley, I was director general manager, I save, has been on the Berkshire track,
analyze the company's stock has been many years. Many people have
asked me, Why do not you write a book about the company's books? Later,
Mr. Buffett also said the idea that I, well, I encourage you to write. I was not clear
what he meant in the end. (15: 34)
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Alice Schroeder: I returned to my work began to think about this matter, six months
later, he said you are a first-rate in the industry analyst, you are very familiar with
Buffett's company, Why do not you just do not resign to concentrate on
special meaning to write a book about Buffett's books? I said this really is a
very big challenge. I was not very strong to write this book. The second year in March
to find another writer, I say join us in co-writing a book about Warren
Buffett's book right? His writing is not the same idea with me, first of all,
Mr. Buffett's support for me to write this book, but also advised me to
leave your present job to concentrate on special meaning to write this book, I was
think of a "snowball" of this book theme. At that time, Mr.
Buffett's investment philosophy of life and the whole process of
accumulation of wealth, life experience should have one record, so I would
recommend Mr. Buffett to write their own, but Buffett said, I can not, do not want to
write, did not have time. Who are the best candidates? We discussed about it, think I
am the right candidate. So in 2003 I started to write this book. Buffett was that writing
is a very difficult task, not willing to write, but he is willing to invest in, willing to
play bridge, and willing to save, the operation of Berkshire companies to work for
him to inspire other people's expertise and willing to select the most
suitable people to do the right job. He encouraged me to write this book about him
and about his company's books, so I increasingly have the confidence. The
book's publication, Mr. Buffett did not interfere with me, do not participate,
he said this version and the others as long as I write different versions, the book is
written plain, do not be flattering and exaggerated words. So, could see that he is a
very simple person. (15: 34)
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Alice Schroeder: after that, I am grateful to Mr. Buffett for giving me this opportunity
to write this book. He began to sell his lunch time, that if one wants to have lunch
with him, then we can bid the way, spend money with him to eat this way, he got the
money to make some donations, while also used for some very worthwhile cause. So,
in     2003     I     finally    began     writing     beginning      to    write     this
"snowball" book. This book took me five years of hard work
was written. Mr. Buffett and I have done a lot of research work, and Mr. Buffett for
many hours talking to more than 2000, also interviewed 250 of his family, friends,
colleagues, and read many of his letters and archives, read the Vampire Slayer Mr.
Ritter has not disclosed the personal letters and files, these letters and files piled as
high as half the house. An interview with Buffett's wife Susan, his
colleagues and friends, this is a very good experience for me. I understand Mr.
Buffett's past, the details of the past bit by bit I am happy to have the
opportunity to conduct in-depth understanding, if you read this book, you can see
some of Mr. Buffett's life with you. (15: 34)

								
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