24
Jun
One of the richest persons from the Planet, Warren Buffett, talks about Business.
It is a quite long video, but informational for those who are interested in starting a business.
If you want to start a business or to get rich, this video could help your mind think different.
I like the part when he talks about his family and how much money he will give them. If you want to know the answer, just watch this video.
Trust me, it won’t be a waste of time:
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July 4th, 2008 at 6:34 pm
[...] Discussion Points:–Character; Finding the right management and associating with the right people; Salomon Brothers–Business analysis; It’s great when you have to do nothing more than simply analyze the person in charge; Rose Blumkin at Nebraska Furniture Mart–Circle of competence; It’s not the size of the circle, but knowing its perimeter that counts; Coke–When to sell? Never, if it’s a really great business; It took him a long time to realize that it’s almost always a mistake to sell a wonderful business; Gillette–There are no called strikes in investing; Be extremely choosy; 20-punch card decision rule–It’s crazy to work with people who cause your stomach to churn–Berkshire tries to get shareholder-partners who think the way Buffett thinks; He effects this with policies and communications–Having a few large positions is a marvelous way to ensure a pinpoint focus and deep analysis on those positions–The decision to purchase USAir? Temporary insanity. The net return to all owners in the history of the airline industry is negative–Forget what you think the stock market will do; Focus on what the business will do over time, and the stock price will take care of itself; Buy the right kind of business with the right people at the right price; With stocks, it’s difficult to know when something will happen but easy to know what will happen; See’s Candies–It’s an advantage to be able to allocate the capital of Berkshire-controlled subsidiaries vs. the capital of its smaller ownership positions in public companies, but the vastly more important consideration is simply whether or not the investee is a wonderful business–Banking consolidation; Beyond a certain point, Buffett does not see economies of scale–International investing; Corporate governance, tax and accounting factors, and attitudes toward capitalists make him prefer US-domiciled businesses; US multinationals are ways to reap gains from international markets–Franchise value; It’s in the mind of the potential customer; Will people pay more for the product as the years go by? Will they walk across the street now to buy it instead of purchasing a competitor’s product that’s right in front of them? As an investor, the questions to ask are how big is the franchise value and how durable is it? The key for the business is consistently growing its economic moat over time–Clear writing; If you can’t clearly express your investment idea to others, it may not be such a great idea–Size is an anchor to percentage returns on equity; Berkshire’s universe of potential investments has shrunk tremendously because of its large size–Leave your children enough money that they can do anything, but not so much that they can do nothing; Inherited wealth is like a lifetime supply of food stamps–When the market system treats you enormously well, as it has with Buffett, society has a big claim on you Direct link to Video [...]