Warren Buffett is an American business magnate, investor, and philanthropist. He is currently the chairman and CEO of Berkshire Hathaway. He is one of the most successful investors in the world and has a net worth of over $108 billion as of February 2023, making him the world’s fifth-wealthiest
He said; when I was 11 I picked stocks I had the whole wrong Idea, I was interested in watching stocks and I thought stocks were the things that went up and down, I charted them, I read books on Technical Analysis, I read Edwards and Magee I think that was classic then, hundreds and hundreds of pages.
I read that whole thing over and over again , I read everything and I thought the first eight years was the important thing was to predict what a stock would do and predict the stock market and then I read Graham (The intelligent investor) I was 19 or 20 and at that point I realized I was doing it all wrong but didn’t hurt I had that background or and everything.
I rejiggered my mind when I read the book ( the intelligent Investor) and from that point I never bought another stock again, I bought businesses that happen to be publicly traded but I became an owner of the business and I did not care if a stock went up or down the next day, or the next week , month or year and had no idea what it would do , I didn’t know what the stock market would do but I know businesses.
In continuation of his speech he said; I’m a bright guy, who’s terribly interested in what he does. I’ve spent a life time doing it and I’ve surrounded myself with people that bring out the best in me and you don’t need to be a genius In what you do that’s the good thing about it. If I would have done physics and a whole lot of other subjects I’d be an also-ran but I am in a game that if I probably need 120 points of IQ but 170 doesn’t do any better than 120 it may do worse, you don’t really need brains. What do you need? You need the right orientation. 90% of people that buy stock don’t do them the right way.
They think of something that they all hope it goes up next week and think about the market like something they hope goes up and if it’s down they feel worst. What do I thinking about? I think about the company is going to be worth in 10 or 20years from now and I hope it goes down when I buy it because I’ll buy more. I try to keep my competitive spirit in a game where I can win.
When I want to do something: I always want to do it big. I put my whole net worth into cities service preferred I’ve never since that day (March 11- 1942) I’ve never had less than 80% of money in America business you can call them stocks or equities but I see them as America business and I’ve owned a piece of America business at least 80% of all time.I don’t want to own anything else. I only want to own a home and things my family want And all that but owning 5 homes doesn’t mean Anything to me because I’m going to be happy In o one home and there’s a certain amount of things that goes wrong with everything so if I have two homes I know I’ve got more problem and I don’t want more problems and I don’t have more happiness.
What makes me happiest?: I enjoy two things:
1. I know I’ll win over time: It doesn’t mean I’ll beat everybody else but I’m in the game and that’s very very easy if you have the right lessons in your mind about what you’re doing. “what you’re buying” I’m not buying stock. I am buying piece of America business that are overwhelming and am happy doing it. Am happier when stock are going down because I can buy of them with the same amount of money. I’d be happy if I was a farmer I’d want farmlands to go down so I can buy more Acreage.
2. I like been trusted by people: I’ll rather do what I do with partners than do it sitting in a room myself even though I might make more money that way. Let’s pretend there is no stock market let’s say I have to
Privately buy a land like you buy an Apartment house. They’re investments, then you are looking to say what can I do with the money I’ve saved? To put it away so I can feel good for getting it back later at any circumstances, but not necessarily on a given amount but if I have a farm then it’s going to take me a while, but people will be so much better if they Actually have the stock market In terms of buying businesses.
The United States’ economy and it’s very easy to look at the statistics on it, more people, American population, a greater percentage of the America population is wealth now or having more income now than they’ve ever had and if you look at weather the bank of America give you their Average deposit, look at the wealth, it doesn’t mean everybody is wealthy but it does mean relative to any other period of time people have more money now , they have mortgages at low rates more than they’ve ever gotten , all live better.
John .D. Rockefeller was the richest man in the world when I was 6 years old and today you can get better medicine, better Education, better Entertainment, better transportation, you can do everything better than he could.
It’s Astounding that in my life Time if he wants to watch a football game he will have to there but today, I can watch from my screen and they even show me re-play so that explained to me what happened and everything, maybe everybody doesn’t have a screen as big as mine but everybody has a screen or an iphone or a computer or Access to one.
When I was born the dentist didn’t use no Novocaine . If you’ve gone to anybody “constitutional congress” in 1789 to one of their representative there and say I want to tell you what this place will look like in three more of your life times; planes are going to be flying in the skies, watching sport allover the world from a screen they will hold you to off to a lunatic society. We’ve got a government that can tell capitalism what to do and they do and that’s what they should do. The federal government is the boss at the end and they shouldn’t screw up capitalism and Capitalism shouldn’t screw up the federal government it’s very simple.
It’s evolving always. So far we’ve got the better system than we use to have than we did 50 years Ago.
Why am I so sure?
Because I’ve seen 91years of it. I’ve never seen a period where I didn’t believe that not every aspect though but it’s unbelievable what have happened, we had a civil war, we had great depression but in a herky- jerky businesses moved forward, government moved forward, more important; people moved forward. I’m happy to tell people that the same thing I’ve told them before : the best thing to do if you want to invest for the long term is the index because organizations like to grow so they set up indexes on different industries , different countries.
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