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(Marketwatch)   Five ways Warren Buffet invests that you don't. 6) With billions of dollars   (marketwatch.com ) divider line 39
    More: Obvious, Warren Buffett, brk, Berkshire Hathaway  
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2365 clicks; posted to Business » on 15 Mar 2013 at 9:35 AM (2 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-03-15 09:59:18 AM  
He lives an extremely frugal life, and so isn't betting his farm, his retirement, or even his comfort. Most people invest because they want more money for something, whereas Buffett invests as a public service.
 
2013-03-15 10:10:42 AM  
Subby mentioned an important bit. The Buffett family wasn't poor prior to Warren. His family had money and political connections, he went to prestigious businees schools, and then he was mentored by the greatest investors ever. Buffett also had an obsession with money at an early age, working on paper routes and door-to-door sales when he was a kid. Now old Warren is not one of those who believed he hit a triple when he was born on 3rd base, but people buy wholesale into his image and think that could be them. Unless your dad was a US Congressman too and you could go to Columbia Business School, you'll never get close to being like him. You can though learn about value investing and apply its tactics to your own investment strategy, and end up doing well for yourself.
 
2013-03-15 10:11:39 AM  

Nurglitch: He lives an extremely frugal life, and so isn't betting his farm, his retirement, or even his comfort. Most people invest because they want more money for something, whereas Buffett invests as a public service.


I don't know about a "public" service -- service to his shareholders, perhaps.
 
2013-03-15 10:12:30 AM  

Nurglitch: He lives an extremely frugal life, and so isn't betting his farm, his retirement, or even his comfort. Most people invest because they want more money for something, whereas Buffett invests as a public service.


Wow..usually I use the phrase "drooling moron" as hyperbole, but damn, you're it.

/wipe your chin
 
2013-03-15 10:17:30 AM  

Arkanaut: Nurglitch: He lives an extremely frugal life, and so isn't betting his farm, his retirement, or even his comfort. Most people invest because they want more money for something, whereas Buffett invests as a public service.

I don't know about a "public" service -- service to his shareholders, perhaps.


"I don't have a problem with guilt about money. The way I see it is that my money represents an enormous number of claim checks on society. It's like I have these little pieces of paper that I can turn into consumption. If I wanted to, I could hire 10,000 people to do nothing but paint my picture every day for the rest of my life. And the GDP would go up. But the utility of the product would be zilch, and I would be keeping those 10,000 people from doing AIDS research, or teaching, or nursing. I don't do that though. I don't use very many of those claim checks. There's nothing material I want very much. And I'm going to give virtually all of those claim checks to charity when my wife and I die. (Lowe 1997:165-166)"
 
2013-03-15 10:49:07 AM  

verbaltoxin: Subby mentioned an important bit. The Buffett family wasn't poor prior to Warren. His family had money and political connections, he went to prestigious businees schools, and then he was mentored by the greatest investors ever. Buffett also had an obsession with money at an early age, working on paper routes and door-to-door sales when he was a kid. Now old Warren is not one of those who believed he hit a triple when he was born on 3rd base, but people buy wholesale into his image and think that could be them. Unless your dad was a US Congressman too and you could go to Columbia Business School, you'll never get close to being like him. You can though learn about value investing and apply its tactics to your own investment strategy, and end up doing well for yourself.


Came here to say something similar. People always clamoring to emulate his investment "strategy". His "strategy" involved being born into good fortune, and making lots of money. The investments are secondary.

Not to say he doesn't know what he's doing, he's very competent, but still.
 
2013-03-15 10:50:07 AM  
When I invest money millions of people around the world don't fall over themselves to invest in the same thing I just did, which in turn makes the value of my investment go up almost automatically.
 
2013-03-15 10:58:54 AM  

verbaltoxin: Unless your dad was a US Congressman too and you could go to Columbia Business School, you'll never get close to being like him. You can though learn about value investing and apply its tactics to your own investment strategy, and end up doing well for yourself.


Indeed. I always keep one thing in mind with my portfolio: I didn't shoot out of a silver-lined vagina like most of these people did. Investing is also not my full-time job. I will not become rich doing this.

Doesn't mean I can't make simple, common-sense buys and sells that give me returns which vastly outpace a savings account, however.
 
2013-03-15 11:02:33 AM  

sure haven't: verbaltoxin: Subby mentioned an important bit. The Buffett family wasn't poor prior to Warren. His family had money and political connections, he went to prestigious businees schools, and then he was mentored by the greatest investors ever. Buffett also had an obsession with money at an early age, working on paper routes and door-to-door sales when he was a kid. Now old Warren is not one of those who believed he hit a triple when he was born on 3rd base, but people buy wholesale into his image and think that could be them. Unless your dad was a US Congressman too and you could go to Columbia Business School, you'll never get close to being like him. You can though learn about value investing and apply its tactics to your own investment strategy, and end up doing well for yourself.

Came here to say something similar. People always clamoring to emulate his investment "strategy". His "strategy" involved being born into good fortune, and making lots of money. The investments are secondary.

Not to say he doesn't know what he's doing, he's very competent, but still.


I am not terribly familiar with investing or how Warren invests but I imagine it is like playing poker.  There is a different strategy when you have the large stack vs. the small stack at the table.  I am sure there is a difference on who has the large stack (professional vs. a nobody at the table)

Warren has the large stack and can just buy pots.  He has the advantage (as someone mentioned) where he buys a stock, then everyone else does because he did, so he can influence a change in the stock (both buy the volume he can buy and his name).  I buy a stock and no one cares.
 
2013-03-15 11:04:27 AM  

sure haven't: verbaltoxin: Subby mentioned an important bit. The Buffett family wasn't poor prior to Warren. His family had money and political connections, he went to prestigious businees schools, and then he was mentored by the greatest investors ever. Buffett also had an obsession with money at an early age, working on paper routes and door-to-door sales when he was a kid. Now old Warren is not one of those who believed he hit a triple when he was born on 3rd base, but people buy wholesale into his image and think that could be them. Unless your dad was a US Congressman too and you could go to Columbia Business School, you'll never get close to being like him. You can though learn about value investing and apply its tactics to your own investment strategy, and end up doing well for yourself.

Came here to say something similar. People always clamoring to emulate his investment "strategy". His "strategy" involved being born into good fortune, and making lots of money. The investments are secondary.

Not to say he doesn't know what he's doing, he's very competent, but still.


He may have come from a well off family but one doesn't become the richest man in the world by "being born into good fortune." He has spent his entire life working his ass off and being very smart.
 
2013-03-15 12:57:00 PM  

Nurglitch: He lives an extremely frugal life, and so isn't betting his farm, his retirement, or even his comfort. Most people invest because they want more money for something, whereas Buffett invests as a public service.


He lives in the same house in Omaha that he bought back in 1957, even though he could afford to buy an entire estate at this point. He doesn't have a limo or a chauffeur. He drives himself. He bought a private jet and called it The Indefensible. He is an example of what frugal living and prudent investing can produce.

verbaltoxin: Subby mentioned an important bit. The Buffett family wasn't poor prior to Warren. His family had money and political connections, he went to prestigious businees schools, and then he was mentored by the greatest investors ever. Buffett also had an obsession with money at an early age, working on paper routes and door-to-door sales when he was a kid. Now old Warren is not one of those who believed he hit a triple when he was born on 3rd base, but people buy wholesale into his image and think that could be them. Unless your dad was a US Congressman too and you could go to Columbia Business School, you'll never get close to being like him. You can though learn about value investing and apply its tactics to your own investment strategy, and end up doing well for yourself.


True, he did have a bit of a head start. However, he doesn't view himself as a 'job creator' and that everyone below him should be kissing his ass. He seems like an ethical, likable businessman who invests in things people use, like GEICO, Fruit of the Loom, Coca-Cola, Dairy Queen or Heinz. He has a simple investment strategy: Buy, hold and never sell.
 
2013-03-15 01:23:32 PM  

verbaltoxin: Unless your dad was a US Congressman too and you could go to Columbia Business School, you'll never get close to being like him


Oh please. CBS isn't impossible to get in to. With a couple years notice and enough drive, most people could get in to a top business school. It's difficult, but it's not impossible.
 
2013-03-15 01:48:07 PM  

ohknaks: verbaltoxin: Unless your dad was a US Congressman too and you could go to Columbia Business School, you'll never get close to being like him

Oh please. CBS isn't impossible to get in to. With a couple years notice and enough drive, most people could get in to a top business school. It's difficult, but it's not impossible.


Just what the world needs, 6 billion people who speak in marketing gibberish and outsource each other to China.
 
2013-03-15 02:12:54 PM  
Man knows how to write a song, too.

Try the veal.
 
2013-03-15 02:16:16 PM  

dustman81: He is an example of what frugal living and prudent investing can produce.


Wow, so if my sister and her husband who don't make much money live frugally, they too can have billions worth of assets? Sweet!
 
2013-03-15 02:42:37 PM  

MrEricSir: Just what the world needs, 6 billion people who speak in marketing gibberish and outsource each other to China.


Jealousy doesn't suit you.
 
2013-03-15 02:59:48 PM  

verbaltoxin: Subby mentioned an important bit. The Buffett family wasn't poor prior to Warren. His family had money and political connections, he went to prestigious businees schools, and then he was mentored by the greatest investors ever. Buffett also had an obsession with money at an early age, working on paper routes and door-to-door sales when he was a kid. Now old Warren is not one of those who believed he hit a triple when he was born on 3rd base, but people buy wholesale into his image and think that could be them. Unless your dad was a US Congressman too and you could go to Columbia Business School, you'll never get close to being like him. You can though learn about value investing and apply its tactics to your own investment strategy, and end up doing well for yourself.


My benchmark for returns in the stock market is 20%. His is 16%. I've made mine in the last five years. He hasn't. I have a B.A. from the University of Alberta in Edmonton, and my investment strategy is derived from two books by Peter Lynch, and and that 20% benchmark is lowcompared to what I could be earning (I half-ass Lynch's technique, so I'm not getting the returns I could). Sorry, but Buffet is not an investor I care to emulate.

His frugal lifestyle on the other hand, now that I admire.

/fiancé and I have been discussing the "dresser drawer as a bassinet" story
 
2013-03-15 03:00:29 PM  

ohknaks: MrEricSir: Just what the world needs, 6 billion people who speak in marketing gibberish and outsource each other to China.

Jealousy doesn't suit you.


What next, are you going to defend lawyers?
 
2013-03-15 03:10:46 PM  

MrEricSir: What next, are you going to defend lawyers?


Let me guess, you're some sort of engineer.
 
2013-03-15 03:18:33 PM  

ohknaks: MrEricSir: What next, are you going to defend lawyers?

Let me guess, you're some sort of engineer.


Yeah, I actually contribute to society instead of destroying it. What a concept.
 
2013-03-15 03:21:20 PM  

MrEricSir: Yeah, I actually contribute to society instead of destroying it. What a concept.


I hate to be the one to inform you, but there are other people out there with other professions. Those professions are just as important to the world, if not more so, than yours. Feel as smugly self important as you want, but stop cutting others down. Your ivory tower will be pretty lonely if everyone else hates you.
 
2013-03-15 03:25:41 PM  

ohknaks: MrEricSir: Yeah, I actually contribute to society instead of destroying it. What a concept.

I hate to be the one to inform you, but there are other people out there with other professions. Those professions are just as important to the world, if not more so, than yours. Feel as smugly self important as you want, but stop cutting others down. Your ivory tower will be pretty lonely if everyone else hates you.


That's funny, I never made a single remark about other professions in general. To the strawman mobile!
 
2013-03-15 03:27:28 PM  

sure haven't: verbaltoxin: Subby mentioned an important bit. The Buffett family wasn't poor prior to Warren. His family had money and political connections, he went to prestigious businees schools, and then he was mentored by the greatest investors ever. Buffett also had an obsession with money at an early age, working on paper routes and door-to-door sales when he was a kid. Now old Warren is not one of those who believed he hit a triple when he was born on 3rd base, but people buy wholesale into his image and think that could be them. Unless your dad was a US Congressman too and you could go to Columbia Business School, you'll never get close to being like him. You can though learn about value investing and apply its tactics to your own investment strategy, and end up doing well for yourself.

Came here to say something similar. People always clamoring to emulate his investment "strategy". His "strategy" involved being born into good fortune, and making lots of money. The investments are secondary.

Not to say he doesn't know what he's doing, he's very competent, but still.


He is more than "very competent"  He is a genius, started with the resources, and has the passion that aligned with the resources he had.  He also works his ass off, ever since he was a little kid.  People talk about the jobs he had, forgeting that he also graduated near the top of his class while doing them. The lesson to learn from him is vaue your resources (time, money, and physical and mental health), and efficiently use them to grow them.  The "efficiently" part is the part that takes intellegence. Anybody can sit in front of a computer for an hour.  He knows how to sit in front of a computer for an hour and make money.
 
2013-03-15 03:36:08 PM  

MrEricSir: That's funny, I never made a single remark about other professions in general. To the strawman mobile!


You want to talk about straw men? How about this:

MrEricSir: Just what the world needs, 6 billion people who speak in marketing gibberish and outsource each other to China.


That's a straw man. The world requires people that know business. If you don't like being able to make a living in society, go live in a commune in Humboldt county.

Funny enough though, many of the people I've met in business schools on the west coast are software engineers. I guess many other people in your profession don't hold business in such low regard.
 
2013-03-15 03:39:32 PM  

plcow: Anybody can sit in front of a computer for an hour.  He knows how to sit in front of a computer for an hour and make money.


4.bp.blogspot.com
This girl could be the next Warren Buffett!
 
2013-03-15 03:51:38 PM  

ohknaks: MrEricSir: That's funny, I never made a single remark about other professions in general. To the strawman mobile!

You want to talk about straw men? How about this:

MrEricSir: Just what the world needs, 6 billion people who speak in marketing gibberish and outsource each other to China.

That's a straw man.


If you don't understand the difference between exaggeration and a strawman, I'm not sure what to tell you. Pretty basic stuff.


The world requires people that know business. If you don't like being able to make a living in society, go live in a commune in Humboldt county.

Again, you're arguing against points I never made, which makes me question if you even had a point to begin with. I totally agree that the world needs people who know business, which is why it needs fewer MBAs. If you look at the top companies in the US, you won't find MBAs running the show. There's a reason for that -- the best companies are run by people who are actually competent, experienced, and have in-depth domain specific knowledge. The exact opposite of an MBA.


Funny enough though, many of the people I've met in business schools on the west coast are software engineers. I guess many other people in your profession don't hold business in such low regard.

You know what they say: if you can, do. If you can't, teach. If you can't teach, write textbooks. If you can't write, sign up for an MBA program.
 
2013-03-15 04:01:48 PM  

MrEricSir: If you look at the top companies in the US, you won't find MBAs running the show. There's a reason for that -- the best companies are run by people who are actually competent, experienced, and have in-depth domain specific knowledge. The exact opposite of an MBA.


Roughly 200 of the Fortune 500 are run by people with an MBA, 140 of the remainder have other graduate degrees. Those without? You can guarantee there are many people with MBAs in finance and operations that help grow those companies.

I don't know what boss with an MBA yelled at you and made you feel bad about yourself earlier in your career, but it doesn't change the fact that business school is a required function in society. The fact that other people happen to be able to run a business without an MBA (although maybe with an undergrad business degree) doesn't change that.

Look at it this way, there are many software engineers that code quite well without a CS/SE degree. Does that make either of those degrees useless? Not at all.
 
2013-03-15 04:04:52 PM  

MrEricSir: If you look at the top companies in the US, you won't find MBAs running the show.


Of all the people I see posting in the Business tab, you are the one who is consistently wrong. It's almost like you're allergic to facts.

But the Fortune 500 executives who completed both college and graduate school collectively earned about 200 M.B.A.'s and about 140 other graduate degrees.
 
2013-03-15 04:21:24 PM  
Warren Buffett also pays attention to the little details -- like spelling other people's names right.
 
2013-03-15 04:51:12 PM  

Atomic Spunk: MrEricSir: If you look at the top companies in the US, you won't find MBAs running the show.

Of all the people I see posting in the Business tab, you are the one who is consistently wrong. It's almost like you're allergic to facts.

But the Fortune 500 executives who completed both college and graduate school collectively earned about 200 M.B.A.'s and about 140 other graduate degrees.


I love how you accuse me of being wrong, then post links that prove me right. Keep it up.
 
2013-03-15 04:52:14 PM  

ohknaks: I don't know what boss with an MBA yelled at you and made you feel bad about yourself earlier in your career, but it doesn't change the fact that business school is a required function in society. The fact that other people happen to be able to run a business without an MBA (although maybe with an undergrad business degree) doesn't change that.


Enough with the making shiat up. Unless you can demonstrate that businesses did not exist before the MBA was invented, you really don't have a leg to stand on with that one.
 
2013-03-15 04:57:54 PM  

MrEricSir: Enough with the making shiat up. Unless you can demonstrate that businesses did not exist before the MBA was invented, you really don't have a leg to stand on with that one.


Software existed before formal software engineering degrees did too. Hell, Computer Science degrees were a hell of a lot different back in the day before it was the path to a career in coding.That doesn't change anything. Keep trying.

If you could write a computer program, why did you bother getting an MS in CS at SF State then? Was it worthless?
 
2013-03-15 05:15:26 PM  

ohknaks: MrEricSir: Enough with the making shiat up. Unless you can demonstrate that businesses did not exist before the MBA was invented, you really don't have a leg to stand on with that one.

Software existed before formal software engineering degrees did too. Hell, Computer Science degrees were a hell of a lot different back in the day before it was the path to a career in coding.That doesn't change anything. Keep trying.

If you could write a computer program, why did you bother getting an MS in CS at SF State then? Was it worthless?


Once again, you're arguing against a strawman. Are you even capable of sticking to the topic?

With such a complete obliviousness to even the most basic critical thinking skills, you'd be a shoe-in for any MBA program.
 
2013-03-15 06:11:38 PM  
Going to toss in my lol at programmers calling themselves engineers.
 
2013-03-15 08:48:17 PM  

sure haven't: dustman81: He is an example of what frugal living and prudent investing can produce.

Wow, so if my sister and her husband who don't make much money live frugally, they too can have billions worth of assets? Sweet!


I didn't say anyone would be a billionaire. But to invest, you need money to invest. To have money to invest, you need to live on less than you make, i.e. live frugally.
 
2013-03-15 10:05:21 PM  
Arkanaut: I don't know about a "public" service -- service to his shareholders, perhaps.

The man donates billions of dollars to charity, that's a public service if you ask me.
 
2013-03-16 06:17:14 AM  
Regular people can't invest like Warren Buffett because his wealth gives him special privileges.  See  http://money.usnews.com/money/blogs/On-Retirement/2011/08/30/why-you- c ant-invest-like-warren-buffett for an example about his 2008 $5B Goldman Sachs investment.
 
2013-03-16 02:19:26 PM  

AdolfClamwacker: Going to toss in my lol at programmers calling themselves engineers.


Well, my Computer Engineering degree is accredited by ABET but I will admit that 90% of the programming I've done during my professional life could not in any way, shape, or form be considered engineering. The other 10% of projects is what separated me from the DeVry guys who would try to cut down a forest by using a million butter knives. Most programming is cut, paste, and modify CRUD garbage but there are projects out there that succeed only because they went through an engineering process for design and implementation.
 
2013-03-18 11:59:59 AM  

Nurglitch: He lives an extremely frugal life, and so isn't betting his farm, his retirement, or even his comfort. Most people invest because they want more money for something, whereas Buffett invests as a public service.


If you think he invests for anything other than getting more money and power you're a fool.   More on the power side these days.  He picks his investments and then moves markets with his derp. The sheeple think hes a hero for saying "tax me the rich should pay more" The taxes he wants still wont make him pay more because his income is all capital gains. Short of taxing capital gains as income he wont pay more, ever.
 
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