Warren Buffett Vs America

Warren Buffett says that he reads at least five papers a day and he is invited to go through some headlines from some newspapers. They start with the Wall Street Journal, but depending on which paper you pick up, some of them say that Buffett is very optimistic about the future while other say that he is very concerned. He says that he is very optimistic about the future of the United States, saying that there is no way you can bet against America and win.

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 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.

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