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Buffett: The rock star of American capitalism ? http://finance.QQ.com 2009 年 09 月 04 日 15:02 I want to comment on Knowledge @ Wharton (0) In this article, &quot;Knowledge @ Wharton,&quot; Feed From the fact that point of view, Warren Buffett (Warren Buffett) of the rock star status is clear: Every year, tens of thousands from around the world, &quot;fans&quot; to Omaha, Nebraska ( Omaha), to listen to Buffett in Berkshire (Berkshire Hathaway) general meeting of the speech. Buffett calls this activity &quot;as the Woodstock Music Festival organized by the capitalists&quot; (Woodstock for Capitalists), for many people to attend this meeting, this is a person annually - a use of Po- Berkshire&#39;s stock and the investment wisdom and insight for their business people to make money - the expression of reverence of the &quot;religious.&quot; Not surprisingly, Alice Schroeder (Alice Schroeder) input on insight into the biography of &quot;snowball: Warren Buffett and his wealth of life&quot; (The Snowball: Warren Buffett and the Business of Life), also in the middle readers Reading has become very popular. She tried to explain in this biography, Buffett is how to become one of the world&#39;s richest man, his business ethics, and his most of his wealth because of the charity donated to the unique behavior of the highly acclaimed. Buffett&#39;s annual letter to shareholders (see published in the berkshirehathaway.com the &quot;Warren Buffett&#39;s Letter To Berkshire Shareholders&quot; (Warren Buffett&#39;s Letters to Berkshire Shareholders)) is widespread. These letters will analyze the good and bad companies, will give a fair treatment of those customers and employees, while creating significant profits for the manager&#39;s example, in addition, many of these letters Haihui exposure to fool investors accounting fraud. Some letters had also mentioned that executives should be only in the performance of the company&#39;s long-term than in the same industry when other companies to get bonus, some letters are on the drawing near of the disaster warned, for example, he told financial derivatives will evolve into &quot;weapons of mass destruction to&quot; show the red card. In this lead to the collapse of the global financial system during the outbreak of the subprime crisis, Buffett said in a letter to shareholders that rich people like him, should implement the same ratio as his Secretary of the working-class higher rate. Buffett&#39;s most important act is to contribute most of its wealth to the Gates Foundation (Gates Foundation), Zai 20 year period where the funds will be used for health care and education, Zhu Yao. As he mentioned: &quot;the wealth from generation to generation, thus, make you hundreds of future generations simply because of their origin will be able to control the resources of the ideas of others, is the elitist concept of society defied. (Buffett identity populist social ideal. If the rich regarded the property left to his descendants, the United States will immediately inherit the wealth formed by a hereditary aristocracy, and to the rule of the whole community, the United States will lose the spirit of democracy. He believed in the means winning the elite societies. - Translator Note) &quot;In addition, unlike most philanthropists, Buffett has not set up his own foundation, or museum did not fund the building so that people always remember their names. Rational money machine According to Buffett&#39;s an early biography, as of the late 20th century, 70, Warren Buffett at an average price of 32.45 U.S. dollars per share, 1,540 million dollars into the company to buy 46% stake in Berkshire, including his his wife, Susan (Susan) of 3% of the shares. (See: Luo Jieluo Weinstein (Roger Lowenstein) book &quot;Buffett: an American capitalist growth&quot; (Buffett: The Making of an American Capitalist)) to Berkshire&#39;s stock price recently as 87,200 U.S. dollars terms, in about 30 years time, Buffett&#39;s wealth increased by nearly 3,000 times. The basis of this huge accumulation of wealth that is he, Ben Graham (Benjamin Graham) learned of the investment discipline. Buffett&#39;s investment strategy is a seventh grade to the application of mathematical knowledge, and used to analyze a company&#39;s internal economic situation of common sense; he bought is a business rather than a Gupiao; he ignored Gupiaoshichang the ups and downs fluctuations; Ciwai, The most important thing is that he would adhere to the &quot;margin of safety&quot; (margin of safety) (also known as &quot;safe margin&quot;) principle. Initially, Buffett studied at Wharton, but in 1951, he was from Columbia University (Columbia University) received an MBA, because here, he studied under study in Graham. He amended the Graham&#39;s investment strategies, holding that the statistical sense, a very cheap very diversified portfolio and focus on investment in some businesses - those that are easy to understand, stable and full of growth, proposed by focusing on shareholder best interests of the operation of the enterprise managers. Berkshire&#39;s earnings and value of the portfolio benefited from mutually reinforcing, the portfolio invested in the company&#39;s insurance and reinsurance business, and the purchase, including wedding candy company (See&#39;s Candies) (founded in 1921, is headquartered in San Francisco , is the oldest American West&#39;s most famous candy and chocolate food companies. - Translator Note), Boshiaimu (Borsheim) jewelry company and the electricity business of Sino-US Energy (MidAmerican Energy) and other shares, in addition, The company also invested in the &quot;Washington Post&quot; (The Washington Post), Coca-Cola, American Express Company (American Express) and Procter &amp; Gamble Company (Procter &amp; Gamble) and other companies generate more cash flow, a lower turnover rate of these investments, so the tax rate lower. Of course, pushing the passage of time, the mathematical magic of compounding returns for Berkshire contribution to the growth of corporate wealth. Buffett portfolio management proposed three principles: first, do not lose money; second, do not forget the first; the third, not liabilities. His focus, intelligence - he was never satiation &quot;learning machine&quot;, rational, self-confidence and childhood ambition to become rich, by Schroeder and others led him to success as a significant character. In addition, because of his honesty, fairness, let others just do them and therefore do not intervene, and the success is attributed to others 的 ensured that he attracted a lot of talent and he worked to work as his partner, and with his transactions. Buffett admitted that he had committed several errors. The biggest mistake is his in 1993 to 433 million U.S. dollars of the Dexter Shoe Company (Dexter Shoes) for the purchase, then pay a Berkshire share price 1.6%, exacerbated by the severity of this error. In terms of current share prices, these shares to the shareholders cost of 22 billion dollars. In addition, after several years of losses, the Buffett of Berkshire in 1985 the company sold the first textile business. Although the sale of textile business for the company to provide the funds to enter the insurance business - Buffett called it the &quot;Berkshire&#39;s milestone&quot; - but lost his job only by a few employees severance pay. Clearly, Buffett&#39;s success much more than his failure. Schroeder said that in the stock market, his investment strategy has been to strictly abide by the safety margin of the main principles of Graham. Crest of the bull market bubble, when others Yuhenantian, Buffett is walking on thin ice, when he realized the position in which a profit, increase Berkshire&#39;s business generated cash. For example, in 2007, a time when oil prices have soared, people have invested in emerging markets is extremely passionate, he sold the Berkshire holds the value of 4 billion U.S. dollars in China Construction Bank (PetroChina) shares, these shares the company in 2002 and 2003 to buy 488 million U.S. dollars. In addition, the difficult times in the stock market and the industrial recession, when others are fearful, he is &quot;greedy&quot;, he would at such a time to purchase a rather attractive price of outstanding enterprises. In addition, his reputation and a large amount of cash reserves, but also to get a lot of Berkshire favorable conditions for the company last year, the stock market in a panic period, prestige and cash let him in and Goldman Sachs Group (Goldman Sachs) and the General Electric Company (General Electric) in the transaction benefit. Lucky Despite the pleasant character Buffett is well known, however, presents us Schroeder, then a chance to seize some luck, personality is also much more complex person. 40 years of the 20th century, that is, when Buffett was a juvenile, he&#39;s from Washington, DC, Sears Department Stores (Sears) store several times stealing golf and golf clubs or something but had not been caught. At that time, they live at home, his father, also a close Buffett friend and role model, is extremely conservative Nebraska Republican members of Congress. Buffett is an input on the wisdom of the street youth, when he purchased the coin marble machine, installed in the poor communities of the barber shop, and shop owners following the partition of marble machine in the money, do not run into any trouble. In the later 20th century, mid 70s, when the United States Securities and Exchange Commission (Securities and Exchange Commission, referred to as SEC) because the acquisition of Weiss can be financial companies Buffett (Wesco Financial) regarding the prosecution of him, luck came to Pakistan again Fitow head. The failure by Buffett and partner Charles Munger (Charles Munger) tried to acquire Weiss can be caused by financial companies. In 1976, their company to a fine of 115,000 U.S. dollars with the Securities and Exchange Commission reached an agreement, but they did not admit nor deny that they done anything immoral. Buffett has not named, nor was fined, while the reputation of a fledgling, the name and the fine will result in &quot;irreversible, terrible devastating effects.&quot; Agreement reached in a few weeks later, the SEC so that Buffett has entered a research group information disclosure procedures. With the Securities and Exchange Commission reached an agreement, so Buffett and Munger lifted each other in a large number o f enterprises have not fully cross-linked the ownership structure, and eventually all enterprises included in the Berkshire company. Schroeder wrote that Buffett&#39;s move was inspired by his admiration for another investor, but a mystery question is whether it wants to copy Buffett, the late 杰伊普里茨 g ( Jay Pritzker) approach to the tax to a minimum has not learned. Pritzker is one of Buffett&#39;s business idols, and his family-owned Hyatt Hotels and Resorts (Hyatt Hotels), when he came through the labyrinth of the shareholding structure to avoid taxes. Head on Buffett&#39;s investment managers, particularly hedge funds and private equity funds charge high fees criticized. Last year, he formed with several hedge funds, a fund set up a bet, he predicted that the high cost of hedge funds will make their long-term performance than the S &amp; P 500 Index (S &amp; P 500 Index) performance worse. (See &quot;Buffett&#39;s big bet&quot; (Buffett&#39;s Big Bet), &quot;wealth&quot; (Furtune) Journal, June 9, 2008.) (Warren Buffett announced that he would set up 320 thousand U.S. dollars from a Cut &quot;gambling,&quot; betting the S &amp; P 500 index over a number of hedge funds, including portfolio - translators note). However, Buffett accumulated his money first, it stemmed from his hedge fund from a company similar to the fees charged for more than 4% of investment income, he will be one half of the bag. Buffett&#39;s partnership was founded in 1957, 10.5 million in initial capital from his family and friends, he spent only 100 U.S. dollars. When the partnership closed in 1969, the Buffett company 100 million U.S. dollars in assets of 2,650 million U.S. dollars had been occupied, fully benefit from these assets, the assets in his custody for the growing costs and the interest compounded . However, high fees and now is different fund managers, Buffett agreed to bear one quarter of investment losses, but he did not lose any, because his partner&#39;s 12-year life, average annual compound growth rate of 31%. 20th century 80s, Buffett has publicly opposed to corporate raider &quot;green vote fraud&quot; (greenmail) (also known as &quot;blackmail ransom&quot; or &quot;Green blackmail letter&quot; means an individual or a group of investors to force the target premium to buy back company shares for the purpose of purchasing large amounts of target stock&#39;s behavior. to be acquired from the target company will buy back the implementation of a higher premium (payment of ransom), to encourage the investors to sell shares to the company, give up the intention of further acquisitions. - Translator Note), these people will be threatened expulsion of management, but if the company buy back its own shares, so that their own profit, then they will leave. However, the Buffett Partnership in early for his company to some of the investment, also based on expectations: management of the Company will buy back company stock prices higher. In fact, in 1965, the year is a Berkshire company based in Massachusetts, are in the declining textile industry, a high-cost textile manufacturers; then, if not management has committed more than 11.5 U.S. dollars per share of prices will be less of 11.375 U.S. dollars for 12 cents a takeover bid for the offer, then Buffett will be sold to the management of their holdings of Berkshire stock. The operator of the Green vote fraud tend to force the huge debt management, just to buy back their own stock. In sharp contrast, the principles of Buffett&#39;s activism is aimed at those companies - the ones through the use of cash, or use not been seriously underestimated in the stock price reflected in other assets, to improve shareholder returns of those companies . By 1989, Berkshire has owned 6% of the shares of Coca-Cola, was worth 1.2 billion U.S. dollars. Coca-Cola Company is the largest of Berkshire&#39;s position, for which Buffett joined the board of directors of Coca-Cola. Mid-90s of the 20th century, in the Coca-Cola&#39;s shares rose several times after the CEO Goizueta (Roberto Goizueta) to Wall Street analysts have made the commitment moderate growth. But, as Schroeder described, when Goizueta is actually a &quot;financial engineering&quot; (financial engineering) method, to &quot;maintain the illusion of rapid growth in corporate profits.&quot; Schroeder wrote, Buffett is very clear Coca-Cola profit targets to be completed on time, to promote the sale of bottling plant profitability. Schroeder commented that such actions are &quot;neither illegal, nor is it technically cheating.&quot; But in the company board of directors, Buffett have remained silent. Buffett said Goizueta &quot;did not mean you should question the people.&quot; He also added that about, &quot;as a member of the board, you actually can not do anything.&quot; His son, Howard Buffett (Howard Buffett) Berkshire director of the company is also the Coca-Cola Enterprises (Coca-Cola Enterprises, referred to as CCE) - Coca-Cola&#39;s main bottling plant - a director, he said: &quot;on behalf of Coca-Cola Enterprises Coca-Cola will not challenge the What is the problem. &quot;However, Howard finally left the Coca-Cola Company&#39;s board of directors, Schroeder talked about, because&quot; in the Coca-Cola Enterprises Board of Directors, and Berkshire&#39;s board, the existence of too many potential conflicts. &quot;in the end is What kind of conflicts? Buffett&#39;s Berks hire is responsible for operations, but also are in Coca-Cola Company&#39;s board of directors, he will face these conflicts? Since 1993, Buffett has been the company&#39;s stock option expense to defend, many corporate executives stock options to their generosity, other managers and staff incentives and bonuses. It was only in 2002, despite opposition from most of the CEO, Buffett is time that Coca-Cola board of directors to motivate yourself to become the first stock option expense of larger companies. Coca-Cola of this action is allowed by accounting standards, accounting standards, but this is no strict requirement, and soon, &quot;Washington Post&quot; the board, Microsoft board of directors and board of directors of other companies have also adopted this approach. Buffett from Berkshire received a symbolic salary of one hundred thousand U.S. dollars, while he himself and other managers do not receive stock options, grants, or warrants. Personal life and family life Schroeder confirmed that Buffett is not a big house, cars and yachts. He always wore cheap clothes, very much like to eat hamburgers, french fries, likes to drink Cherry Coke, but it looks a little stupid in social situations, being outperformed feet. In addition, Buffett has a long time online playing bridge, he likes to golf, handball and table tennis, like to play the ukulele. Schroeder described the Buffett became a &quot;dramatic&quot; and would hurt him if blunt or undermine the other business relationship, he will avoid head-on confrontation, will hide their real views behind vague. Schroeder wrote, in Buffett&#39;s family life, because he always work full of heart labor Shenpi - Looking for more ways to earn more money, &quot;is a sacred mission&quot; - so, He did not have time to leave his wife and three children. The children growing up in Omaha, &quot;although he is very friendly and the children, but he did not really understand them.&quot; Sometimes, Buffett&#39;s secretary refused even close family members, and not implicitly suggest, but is let me know, this is a typical Buffett style of work, Schroeder talked about. 70 years of the 20th century, when his youngest child at high school, Buffett will take a moment to participate in the Embassy in Washington, DC and New York&#39;s Fifth Avenue mansion dinner, the dinner provided was mainly French. At that time, he was accompanied 凯 格 雷 厄 姆 (Kay Graham) - &quot;Washington Post&quot; publisher at the time - to participate in these activities. Schroeder mentioned that Warren Buffett&#39;s words, these activities are &quot;elephants collision&quot; (elephant bumping). In 1978, all children grow up away from home after Buffett&#39;s wife Susan moved to San Francisco to settle. Except when a mother raising children, and friends and strangers in need of assistance generosity of time and money, the Susan Buffett also increased self-confidence, improved interpersonal skills Buffett, and enhanced bus Buffett&#39;s social conscience, Schroeder wrote. Susan hopes that Buffett had once earned a million dollars after the first, do not wholeheartedly immersed in the work to make more money. The act has led to Susan Buffett left their home in Omaha, Buffett is a big regret in life, Schroeder wrote. Later in 2003, when Buffett receiving cancer treatment to help take care of Susan, the 73-year-old, he told the Georgia Institute of Technology (Georgia Tech) in a group of students talk about: &quot;If you&#39;re my age, can in life no one you have a good evaluation, then no matter how much money your bank account, your life was a disaster. &quot;In 2006, Buffett and his long life companion was Ace Ventura Chui Meng Brooks (Astrid Menks) marriage. The difference is that with most of the capitalists, Buffett believes that children should not be just because the same origin as in the lottery context of succession, a lot of money. He mentioned that people should be left to the children &quot;enough money so that they can do anything, but should not be doing nothing more than to the extent they can.&quot; In order to practice their own ideas, in June 2006, Buffett announced a 85% stake in Berkshire the company donated, the value of these shares was 400 million. Five-sixths of which contribute to the Bill and Melinda Gates Foundation (Bill and Melinda Gates Foundation), the rest of the contributions to the operation by his three children, the Foundation, including a under the Robin Hood (Robin Hood) Legend the story of the forest named &quot;Sherwood&quot; (Sherwood) Foundation, another foundation to the wife of the late Susan Buffett named. In addition, Buffett also plans to own the remaining shares of Berkshire companies donated to charity. As he, like the operation of commercial projects in the field of philanthropy, in order to achieve the eradication of malaria and AIDS in developing countries and other serious diseases, improve the quality of secondary education in the United States and other common goals, Buffett in the Bill and Melinda Gates Foundation also found a helpful partner. Buffett and Bill Gates became friends in 1991, they &quot;Forbes&quot; (Forbes) Magazine&#39;s 2008 world&#39;s richest people, ranked top two. Buffett&#39;s view of the heritage, and the capitalists should be their own money back to society&#39;s point of view - he believes that their wealth is owned by the community from the start - affected the Bill and Melinda Gates, who therefore The establishment of the Foundation. &quot;Buffett&#39;s vision is a free fight winner, but losers but also by helping to narrow the gap between the social.&quot; Schroeder wrote. Buffett to the Gates Foundation donated hundreds of millions of dollars, before the foundation already has about 30 billion U.S. dollars of fund. Ablation of the Snowball According to Schroeder, said Buffett, and rich people often talk about the history of most of the Foundation unsatisfactory in these foundations, the manager to deviate from the wishes of the deceased donors, or even worse, they used the money to pursue their goals and as his salary. So, although on the Gates Foundation, Buffett and his profound contributions to the trust of other people, but he still demands the contributions plan in 20 years, to receive his annual donor funds are spent. This is a rare flower will soon be out of the charitable funds donated, and some funds for their own bureaucratic self- interest and allow the Fund to survive as long as possible in stark contrast. In the struggle and success through self-billionaire in the United States to be their own wealth in their lifetime contributions to the people out of the well-known include George Soros (George Soros) and Charles Feeney (Charles Feeney). The great success Soros hedge fund manager set up the Soros Foundation (Soros Foundation), to undermine the policies of apartheid in South Africa to help, while also weakening the former Soviet Union and Eastern Europe, the forces of the communist leaders provide help. (See &quot;Soros: walking in the market curve in front of people&quot; (Soros on Soros)) Feeney, founder of the global duty-free chain stores, said he was bringing peace to Northern Ireland to play an important role. Since 1982, in even his close friends are aware of the situation, Fini on the anonymous donation of more than 40 billion dollars of money, including donations to his alma mater, Cornell University (Cornell University) for 600 million dollars, and donated to the Irish School of one billion U.S. dollars. Feeney does not own a house, to bus, subway and taxi travel. Feeney&#39;s foundation is not any of his mark, he was prepared to the rest of 2017, his multi-billion dollar funds are all donated. (See: &quot;Billionaire not: how the secret search Kefei Ni accumulated wealth and spend money&quot; (The Billionaire Who Wasn&#39;t), of: Kangnuoerao kharari (Conor O&#39;Clery)) Schroeder is a detailed report on Wall Street the only Berkshire&#39;s analyst, before she began writing the book, once communicated with Mr. Buffett. She is the first-round potential energy close to Buffett and his family and his biographer a large number of files. In addition, she is also very clear, &quot;he worried that those who criticize his own person, Buffett always keep a respectful distance, or they treat time as gold.&quot; Based on these facts, Schroeder works as a fair and honest and wide popular, even though this 976 works to streamline at least 100, if after reading will be more enjoyable. As Warren Buffett often refers, in the 20th century half-century, the U.S. economy as he did have the skills, character and personality of the successful people to become extremely wealthy to provide the ideal environment - United States economy has a lot of wet snow and a long hill, let him continue to snowball your snowballs. Buffett&#39;s huge snowball as the rapid melting, it will become a big surging rapids - an objective to achieve the torrent of his philanthropy.
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