Warren Buffett's Thoughts About Qualities and Japan

In this video, Warren Buffett speaks to the students from The Master of Business Administration course (MBA) about qualities they should have, by playing some kind of game with them, and shares his theory about Japan.

Warren Buffett starts to speak about their future, telling them that they would learn many things about investments, enough to do well, and thinks that they have the IQ for doing that. Also, the energy and the initiative are important. Then, he says that most of them will succeed, but the process of determining what they succeed means more than intellect and energy.

He asks the audience to play a game: He asks the students to think for a moment that he is going to grant them the right to buy 10% of one of their classmates. He makes a joke, saying that they can’t choose the ones with rich fathers. They have an hour to think which student they pick, but he said that he already knows the result: they will not choose the ones with the best IQ, or with the best grades, or the most energetic. They will look for other qualities, and they will choose the ones with the best leadership qualities. And mainly, they will select temperament, character and behaviour qualities.

There are bad habits and good habits. At students age, they can have any habits they want, because it's all a question of what they decide. Thy can get rid of any bad quality at this young age. There isn't a quality that you have to have or not. He knows many people that have self destructive habits, that turn-off people, and they don't need to be so, but they cannot change at an older age, like students. So, it's all about what they will decide.

So, after they will select those qualities of the ones they want to buy, they will realise that they want to be those persons, having those qualities.


A member of the audience asks Warren Buffett what he thinks about Japan. He then says that Japanese companies are on very low returns on equity, and they have a bunch of business that run 4-5-6% on equity, and is very hard to earn a lot as a investor when the business you're in doesn't earn too much money. He knows many wonderful business in Japan in the present, but there are many low-return business also.

This video is Part 1 of 10 videos of this MBA Q&A Lecture with Warren Buffett. Watch Part 2 of Warren Buffett's Lecture.

Warren Buffett Quotes from this Video:

  • Time is the friend of a wonderful business, and the enemy of a lousy business
  • If you are in a lousy business for a long time, you are gonna get a lousy result even if you are buying it cheap. If you are in a wonderful business for a long time even if you pay much to get in, you will get a wonderful result if you stay in
  • You can have any habits you wish. It's simply a question of what you decide
  • The Japanese economy is booming, they have an incredible market without incredible companies
Submitted by YouTube Trader on Sat, 04/03/2010 - 10:41

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