Question: How do you think about growth rates when you value businesses? Buffett: When the [long-term] growth rate is higher than the discount rate, then [mathematically] the value is infinity. This is the St. Petersburg Paradox, written about by Durand 30 years ago. Some managements think this [that the value of their company is infinite]. […]
Buffett: Book Value is Virtually Not a Consideration
Question: What do you think of the use of book values in making investment decisions? Buffett: Book value is virtually not a consideration in investment decision-making at Berkshire. Their pursuit of high return businesses usually leads to companies with minimal book values. He added that the book value approach could work well with small sums […]
Buffett Wharton Speech
Notes on meeting with Warren Buffett on October 10, 2003 On living a successful life Look among your classmates/colleagues and ask yourself “If I could purchase 10% of anyone’s income, who would I choose?…..If I could short 10% of someone’s income, who would it be?” Ben Graham used this exercise quite extensively. Ask yourself the […]
Buffett Tells the History of Coca-Cola
Warren Buffett: Asa Canver back in the late 1880′s essentially bought the whole Coca-Cola company for $2,000, and that may be the smartest purchase in the history of the world. Then in 1889, a couple of guys from Chattanooga came along, and in those days soft drinks were sold over the counter, and they said […]
What does Bitcoin mean to Warren Buffet?
What does Buffet invest in and why does he think Bitcoin will have a terrible ending WARREN BUFFET ON BITCOIN Warren: In terms of crypto currencies generally, I can say almost with certainty that they will come to a bad ending. Now when it happens or how or anything else I don’t know. But I know this […]
The Smart Way To Make Your Money Grow
One of the richest men on earth One of the most successful investor of all times with an estimated net worth of over 80 billion dollars to this date has shared his methods for investing. WARREN BUFFETT HOW ANYONE AN INVEST AND BECOME RICH Warren Buffett, one of the most successful investors of all times, […]
Is Bitcoin The Future Money?
Warren Buffett shares his views on bitcoin being a bubble. Breaking News: If you think private equity is a, or I’m sorry venture capital is potentially a place where you see bubbles. Charlie: Bitcoin and the other cryptocurrencies are also bubbles. Breaking News: And what tells you that? I mean I’m just thinking of […]
How does the Market work and the outlook
Warren Buffett Talks About His Outlook On Markets. Warren Buffett Talks About His Outlook On Markets, Tax Reform, Pilot Flying J And More (Full) | CNBC Becky: We are here this morning with Warren Buffett the chairman and CEO of Berkshire Hathaway and Warren we want to thank you very much for your […]
Warren Buffett’s Best Advice on Successful Investing
You don’t have to be right about thousands and thousands of companies, you only have to be right about a couple. The most important thing is to decide – is to be able to define which ones you can come to an intelligent decision on and which ones are beyond your capacity to evaluate. You […]
On banking business
Buffett: Banking, if you can just stay away from following the fads and making bad loans, has been a remarkably good business. Since WW II, ROE for banks that have stayed out of trouble has been good. Some large well-run banks earn 20% ROE. I’ve been surprised that margins in banking haven’t been competed […]
Buffett: Cash is Worst Investment
The one thing I will tell you is the worst investment you can have is cash. Everybody is talking about cash being king and all that sort of thing. Most of you don’t look like you are overburdened with cash anyway. Cash is going to become worth less over time. But good businesses are going […]
Warren Buffett–In 1974
Under the 1974 headline, “Look At All Those Beautiful, Scantily Clad Girls Out There!,” this profile in Forbes magazine captures Warren Buffett’s personality and chronicles the singular path he cut through the investment world. Though the piece is 34 years old, it sheds light on the man behind Berkshire Hathawayas the company’s shareholders meet this weekend in Omaha, […]