In this interview with Andy Serwer, Warren Buffett reflects on his admiration for Jeff Bezos and his remarkable execution of Amazon’s vision, acknowledging that he didn’t foresee its success. He admits to missing investment opportunities like Microsoft but doesn’t regret them as they were outside his circle of competence. Instead, … Read More
Warren Buffett’s Take: Investing in Industries vs. Companies
During this interview with Dr. George Athanassakos and Ivey MBA and HBA students, Warren Buffett discusses the challenges of picking individual pharmaceutical companies due to the uncertainty of future competition. He suggests that investing in a group of pharma companies, if reasonably priced, is a better approach since some drugs will … Read More
Terry Smith Explains The “Busy Fool Syndrome”
In his book – Investing for Growth, Terry Smith argues that most fund managers prioritize matching their benchmark rather than outperforming it, leading them to become “index huggers” who underperform after fees. He supports Warren Buffett and John Bogle’s view that low-cost index funds are better for most investors. Smith … Read More
Warren Buffett’s Rip Van Winkle Approach to Investing Explained
In his 1991 Berkshire Hathaway Annual Letter, Warren Buffett stresses a patient, focused investment strategy, likening the stock market to a mechanism that transfers wealth from active to patient participants. He highlights Berkshire Hathaway’s first significant international investment in Guinness, while reaffirming confidence in enduring businesses like Coca-Cola and Gillette. … Read More
Warren Buffett: Approval Is Not The Goal In Investing
In his 2008 Berkshire Hathaway Annual Letter, Warren Buffett says some people are keeping their money in the “boring place” because they feel safe. But in the long run, that’s not a smart move because the money won’t grow, and it will lose its value. Instead, he suggests thinking carefully, … Read More
Warren Buffett: The Price Of A Stock Doesn’t Tell Me Anything About A Business
In this television interview, Warren Buffett explained that most professional investors focus on short-term stock price movements rather than viewing stocks as ownership in a business. True value investing means not being concerned about whether the stock market is open tomorrow. A good investment should hold its worth even if … Read More
Warren Buffett: Find Businesses That Can Thrive With Less Ongoing Effort
During the 1995 Berkshire Hathaway Annual Meeting, Warren Buffett explained the difference between businesses that require one-time smart decisions and those needing continuous smart management. Retailing, he notes, demands constant adaptability since competitors quickly mimic successful strategies. In contrast, some businesses benefit from structural advantages, allowing them to thrive with … Read More
Warren Buffett on Knowing Your Strengths and Avoiding the Spotlight
In his 2019 Berkshire Hathaway Annual Letter, Warren Buffett reflects on his experience with corporate directors, acknowledging their decency, likability, and intelligence, though many lacked the aptitude for handling money or business matters. He humorously notes that everyone has areas of incompetence saying, if I were ever scheduled to appear … Read More
Joel Greenblatt: How Warren Buffett Simplifies Smart Investing
In this interview with Barry Ritholz: Joel Greenblatt highlights Warren Buffett’s analogy comparing investing in stocks to owning businesses. He explains that if someone sold a business, analyzed local businesses, and prudently invested in eight well-researched companies, it would be seen as sensible. However, when the same logic is applied … Read More
Warren Buffett: The Secret to Great Business Returns: Stability Over Decades
In his 1987 Berkshire Hathaway Annual Letter, Warren Buffett discussed the value of stability in businesses, arguing that severe change and exceptional returns rarely coexist. Many investors chase exotic, rapidly evolving companies, imagining future profitability while ignoring current realities. In contrast, Buffett highlights that the best returns often come from … Read More
Warren Buffett: When Economic Downpours Rain Gold: Be Ready with a Washtub
In his 2016 Berkshire Hathaway Annual Letter, Warren Buffett discusses Berkshire Hathaway’s commitment to long-term growth in earning power per share, acknowledging that actual earnings may occasionally decline due to economic downturns or industry-specific events. Berkshire retains all earnings, reinvesting significantly more than competitors, to achieve sustainable growth. While gains … Read More
Warren Buffett: Avoid The Preening Duck Error In Bull Markets
In his 1997 Berkshire Hathaway Annual Letter, Warren Buffett reports an $8 billion increase in Berkshire Hathaway’s net worth, reflecting a 34.1% rise in per-share book value. While acknowledging strong performance, Buffett tempers enthusiasm, noting the broader market’s exceptional gains in 1997. He humorously warns against overconfidence, likening it to … Read More
Warren Buffett: Just One Company Can Deliver Unmatched Wealth
In his 2023 Berkshire Hathaway Annual Letter, Warren Buffett highlights Berkshire Hathaway’s strategy of acquiring businesses with strong, enduring economics and capable management. He emphasizes the challenge of predicting winners and the importance of rare companies that can reinvest capital at high returns. Buffett reflects on past acquisition opportunities and … Read More
Warren Buffett: You Only Need One Opportunity Each Year
During this interview at the 25th Anniversary of The Economic Club of Washington, D.C, Warren Buffett reflects on his early investment in Berkshire Hathaway, describing it as a poor decision based on buying undervalued but mediocre companies, which he likened to “cigar butts” with one puff left. He explains that … Read More
Warren Buffett: Why Market Drops Are Good for Investors
In his 1997 Berskshire Hathaway Chairman’s Letter, Warren Buffett highlights the advantages of stock repurchase programs, particularly when prices are low, as they increase ownership stakes more effectively. He notes that Berkshire Hathaway benefits significantly from long-term shareholders, with 97% retaining their shares year-over-year. Market declines, contrary to popular belief, … Read More
Stanley Druckenmiller: Great Investors Win with Concentrated Bets
In this speech to the Lost Tree Club, Stanley Druckenmiller discusses the value of making concentrated investments, following the approach of great investors like Warren Buffett and Carl Icahn. He explains that successful investors identify rare, highly exciting opportunities—perhaps only one or two per year—and focus heavily on them. By … Read More
Warren Buffett: There Is No Place For Emotion In Investing
During the 2023 Berkshire Hathaway Annual Meeting, Warren Buffett discussed the importance of removing emotions from investment and business decisions. He and Charlie Munger pride themselves on maintaining objectivity, highlighting that emotional decision-making has no place in successful investing. While Buffett acknowledges that occasional emotional biases may arise, such as … Read More
Warren Buffett: Stop Listening To Your Neighbor’s Stock-Tips
In this interview with Fortune Magazine, Warren Buffett advises against speculative investing and emphasizes the importance of understanding the assets you buy. He suggests evaluating investments like a farm, apartment, or company based on their productive potential and expected returns. For a farm, calculate expected crop yields and their value; … Read More
Warren Buffett: When a Once-Sound Premise Becomes Distorted
In his interview with the Financial Crisis Inquiry Commission, Warren Buffett explained that the housing bubble leading to the financial crisis was fueled by a pervasive belief that house prices couldn’t decline. This belief, embedded in psychology and reality, became widely accepted by the media, investors, mortgage bankers, the public, … Read More
Warren Buffett: Focus On The Spots Where You Have An Edge
During the 2019 Berkshire Hathaway Annual Meeting, Warren Buffett and Charlie Munger discussed some valuable lessons for investors. First, thorough research and knowledge give a competitive edge, as Buffett demonstrated by seeking obscure information in insurance. Second, expertise in a specific area is crucial; focusing on what you understand best … Read More