Bill Gates Talks About Warren Buffett

Bill Gates says that he was in the world of writing software, being an engineer, and Warren Buffett was in the world of picking stocks. When Warren asks Gates about IBM and Hewlett Packard, how they price their products, what is the nature of competition or what he would if he got to run these companies, Bill sees that his investing was just an outcome from having an incredible model of business in business value. Their first meeting turned into a daylong discussion.

Buffett's computer skills

Warren Buffett's Feelings About the Stockmarket and Life

In this video, Warren Buffett gives some interesting insights about his thoughts about the stockmarket and shares his theory about life and luck.

Warren Buffett talks about how investing and owning stocks give you feelings about the stock which aren't reciprocated. Buffett also prefers stock prices to go down... way down, so its like buying the stocks on sale and an investor can make better buys, which will be worth more in 20 to 30 years time.

Warren Buffett Speaks About Diversification

Warren Buffett talks about diversification in this video. So, he says that you should diversify if your goal is not to beat the markets and you are not an experimented investor. Most people should be invested in index funds and not trade. You need only six best ideas, few people got rich because of a seventh best idea. Warren says that he would put 50% in his single best idea. He does not diversify in his personal account.

Warren Buffett's Insights on Wall Street and Business

In this video, Warren Buffett gives some interesting insights about Wall Street environment, business potential, Long Term Capital Management and Solomon. He is asked by someone in the public about the benefit of not working on Wall Street. He says that is better to think about investments in a room alone with no one to bother you. If that doesn’t work, nothing will. The disadvantage is that you are over stimulated. You think you need to do something every day. The trick is to not do anything every day. The way to go is to get one good idea a year and ride it to its full potential.

Warren Buffett and His Investment Mistakes

Warren Buffett continues to talk about Coke, company that is growing a lot faster outside US than in the US. Coke started in 1919 for $40/share. A year later it was selling for $19/share. There must have been a disaster. Maybe sugar prices increased. Such things effect the short term. But if you ignored the short term, and reinvested the dividends in Coke stock, you’d have about $4,000,000 today. Warren thinks that if you are right about the business, you will make a lot of money.

Investment Mistakes

Warren Buffett on Circle of Competence and Business

In this video Warren Buffett talks about businesses, circle of competence, Coke and Asian crisis. Someone in the audience asks him if he ever bought a company where the numbers told him not to. Warren Buffett says that the best deals are those when numbers tell you not to. You buy a wonderful company and in 20 or 30 years it will be worth more. He once bought a windmill company, but these companies are cigar butts. It is just a one time sale with windmill companies. He also bought a street car company.

Warren Buffett's View On Business Fair Price

In this video, Warren Buffett talks about the fair price for a business. Someone in the public asks him how to determine the fair price for a business.

He uses See's Candy as an example. Back in 1972, See's Candy sold 16 million pounds of candy for $1.95 a pound. Warren Buffett and Charlie, his partner, agreed that it was some untapped pricing power there. Those candies could sell as well for $2.25 a pound, so a 30% increase for every pound. Berkshire Hathaway Inc. paid $25 million for it. The 30% increase in pricing means more $5 million for this profitable company.

Warren Buffett on Business and Stocks

Someone in the public asks Warren Buffett what he looks for in a company. He says that the likes only businesses that he understands, he invests only in what he understands because this is going to narrow things down in a quick way. He raises a can of Coke, saying about it that it is easy to understand, being a simple business. Of course, it's not an easy business, but a simple business. A business should benefit from a valuable castle in its center and the castle must be surrounded by a moat. 3 qualities must have the person that runs the business: to be capable, honest and hard-working.

Warren Buffett Talks About Long Term Capital Management

Warren Buffett's session with MBA students is continuing. As from this second part, he is again taking questions from the public and using his answer to continue to share his unique perspectives and thoughts.

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