Charlie Munger

More people would benefit from Charlie if his ideas were more accessible and he was as prolific a writer as he is a reader. The best way to get to know Charlie is to read Charlie's Poor Almanac.

"Charlie Munger is the most broad-minded person I've ever met." - Bill Gates

"Warren once told me, 'I guess I'm a generally flawed academic because the people I associate with have idiot theories. ... We're trying to buy companies that have viable competitive advantages at low or fair prices.' For a professor to teach this kind of nonsense is like, what are you going to teach the rest of the semester if you don't? [Laughs] Teaching to types of people who don't actually work in real life is a disaster for the world. "American universities have a lot of problems. I would get rid of 3/4 of the faculty, everyone except the hard sciences. But nobody would do that. I'm amazed at how stupid the faculty are. There's a fatal disconnect. There are squirrel-like people in every department who don't see the big picture." "It's a reward system and reinforcement to be a truffle hunter. That's why the great economist called them 'truffle hounds.' Animals bred and trained for a narrow purpose are not very good at anything else. "I think the liberal arts colleges of major universities have a not very sound view, at least when it comes to public policy. Accounting "Proper accounting is like engineering. You need a safety margin. Thank God we don't design bridges and planes like accounting does." ""F. A. S. B."..." Financial accounting is still a lie. "I talked to an accountant who was a very good colleague and would marry his family with mine. He said, 'What other accounting firms do is very unethical. Tax avoidance schemes work best if they don't get found out, so we only apply them to our best clients and not to the rest. That's why my business is better than the rest.'" lol. And he was a perfectly good guy. People just follow the crowd... Their minds go in scary directions...'"

"... It's a practical business life language. It was very useful for culture. Of course, I heard that it was transmitted to civilization through Venice, a major Mediterranean trade. Bookkeeping is a hel l-like invention, but it is not so difficult to understand. It is not so difficult to understand the limit of the jet. I don't really know. "

"You can understand the negative effects of the to p-class audit corporation starting selling fraudulent tax shelters, so no one noticed.

"Creative accounting is an absolute curse for civilization. Double entry bookkeeping can be said to have been one of the great progress in history. It is shameful to use accounting for fraud and nonsense. Democracy. In the state, a scandal is often the most obvious example of a wrong business culture.

"I also want to mention the possibility of the" virtue effect "in the lon g-term finance. For example, a widespread illegal accounting will eventually produce a lon g-term worse as a kind of opposite effect based on the virtu e-based dua l-entry bookkeeping in the heyday of Venice. I suggest that if the financial site comes to remind you of Sodom and Gomora, even if you like to be involved in what you are doing, you should be afraid of realistic results.

"Tw o-thirds of the acquisition do not go well. Our acquisitions work well because we don't try to acquire. < Span> It's the language of accounting business life. However, it was very useful to the Civilization, which was a great way to the culture. It's not difficult, but it's just a crude approach. Everyone knows the pure number of jets, such as the useful life.

"You can understand the negative effects of the to p-class audit corporation starting selling fraudulent tax shelters, so no one noticed.

"Creative accounting is an absolute curse for civilization. Double entry bookkeeping can be said to have been one of the great progress in history. It is shameful to use accounting for fraud and nonsense. Democracy. In the state, a scandal is often the most obvious example of a wrong business culture.

"I also want to mention the possibility of the" virtue effect "in the lon g-term finance. For example, a widespread illegal accounting will eventually produce a lon g-term worse as a kind of opposite effect based on the virtu e-based dua l-entry bookkeeping in the heyday of Venice. I suggest that if the financial site comes to remind you of Sodom and Gomora, even if you like to be involved in what you are doing, you should be afraid of realistic results.

"Tw o-thirds of the acquisition do not work. Our acquisitions work well because we don't try to buy it." It was very useful, but it was a hel l-like invention through a grea t-se a-shaped country. But to understand the limits, it is not so difficult to understand, for example. Everyone knows the use of the useful life because it is a pure number.

"You can understand the negative effects of the to p-class audit corporation starting selling fraudulent tax shelters, so no one noticed.

"Creative accounting is an absolute curse for civilization. Double entry bookkeeping can be said to have been one of the great progress in history. It is shameful to use accounting for fraud and nonsense. Democracy. In the state, a scandal is often the most obvious example of a wrong business culture.

"I also want to mention the possibility of the" virtue effect "in the lon g-term finance. For example, a widespread illegal accounting will eventually produce a lon g-term worse as a kind of opposite effect based on the virtu e-based dua l-entry bookkeeping in the heyday of Venice. I suggest that if the financial site comes to remind you of Sodom and Gomora, even if you like to be involved in what you are doing, you should be afraid of realistic results.

"The tw o-thirds of the acquisition do not go well. Our acquisitions are successful because we do not try to acquire.

"In most companies, if the acquisition is a big failure, the creation of documents and presentations that caused the great failure will be immediately forgotten. It is denied and everything in the world is denied. Nobody wants to be involved in the Pavlov coalition, and he will reconsider the acquisition of the old days. By the way, I usually do the same.

"We don't know exactly what will happen, but we tend to buy something that is likely to be decent.

"We were impressed by the founders and the fact that they had lived in their lives, in most cases, and our expectations have not been disappointed."

"If you were a professional and gambling, you would have been able to use this new advertising method. Because you sell a lot of cans and bottles, you can afford to pay very expensive network TV costs. However, it was the most effective way to buy it. Since the technique was unable to use a television advertisement, the brand companies were already prosperous, flourished, and some of them. I flourished until I was fat.

"I want to say pure Pavlov's 3/4 commercials. Let's consider how pure compounds act. Let's take Coc a-Cola (we are the largest shareholders). Coc a-Cola. The company wants to be involved with all the great images, such as the Olympic Hero and the great music.

"But to cross the race train or avoid cocaine. Learn a good spiritual habit."

"Many of the successes in life and business are born from knowing what they want to avoid. < SPAN>" In most companies, if they get acquired and end, it is a major failure. It is immediately denied about the creation and the presentation, and no one wants to touch it. In the end of Johnson, this is a very wise way to reconsider the old acquisition.

"We don't know exactly what will happen, but we tend to buy something that is likely to be decent.

"We were impressed by the founders and the fact that they had lived in their lives, in most cases, and our expectations have not been disappointed."

"If you were a professional and gambling, you would have been able to use this new advertising method. Because you sell a lot of cans and bottles, you can afford to pay very expensive network TV costs. However, it was the most effective way to buy it. Since the technique was unable to use a television advertisement, the brand companies were already prosperous, flourished, and some of them. I flourished until I was fat.

"I want to say pure Pavlov's 3/4 commercials. Let's consider how pure compounds act. Let's take Coc a-Cola (we are the largest shareholders). Coc a-Cola. The company wants to be involved with all the great images, such as the Olympic Hero and the great music.

"But to cross the race train or avoid cocaine. Learn a good spiritual habit."

"Many success in life and business is born from knowing what you want to avoid. Creation and presentation are immediately denied, and no one wants to be involved in the world. Then, I usually do the same way for the old acquisition.

"We don't know exactly what will happen, but we tend to buy something that is likely to be decent.

"We bought business one after another because we were impressed by the founders and they had lived in their lives. In most cases, they stayed and our expectations were not disappointed."

"If you were a professional and gambling, you would have been able to use this new advertising method. Because you sell a lot of cans and bottles, you can afford to pay very expensive network TV costs. However, it was the most effective way to buy it. Since the technique was unable to use a television advertisement, the brand companies were already prosperous, flourished, and some of them. I flourished until I was fat.

"I want to say pure Pavlov's 3/4 commercials. Let's consider how pure compounds act. Let's take Coc a-Cola (we are the largest shareholders). Coc a-Cola. The company wants to be involved with all the great images, such as the Olympic Hero and the great music.

"But to cross the race train or avoid cocaine. Learn a good spiritual habit."

"Many of the successes in life and business are born from knowing what they want to avoid.

"I have a little capital, and if I was young, I had less opportunities than I was young. At that time, I just got out of the recession. Capitalism was a bad word. I was abused in the 1920s. At that time. , Such a joke was popular: "If I bought a stock for my retirement, it worked well. It may take more time, but I can live a long time."

"Let's spend every day a little smarter than when we wake up. Filingally, do our job faithfully. Going step by step, but by preparing for a sudden start, you will learn discipline. I exercise a day.

"I just need to hire a consultant and apply the windager coefficient like me when I was a rifle shooting player. I adjusted to how many miles per hour, and I could learn the basics of consultant work. Learn a little. I can explain to him why he is right. "

"Warren has improved as an investor since I met him, so the game keeps learning. I have to love the process of learning. There is an occult story about Mozart. 14 years old. The boy came to him and said: "I want to learn to be a great composer." You started composing when you were only 8 or 9 years old. "

"It doesn't follow the example of a 4 0-yea r-old investor."

"I often receive such questions from young entrepreneurs. It's a very smart question: I see a rich elderly person:" How can I be like you?

Capital distribution:

"Find a lot of money that you don't need to make anymore." "I don't think the successor is as good as Warren's capital distribution."

"It's easy to withdraw American Express from Cola and Gillett, but American Express is an extremely powerful business. < SPAN>" If you have only a few capital, now you have a younger time, your chance is more than you were. At that time, it was a bad word in the 1920s. But it may take some time.

"Let's spend every day a little smarter than when we wake up. Filingally, do our job faithfully. Going step by step, but by preparing for a sudden start, you will learn discipline. I exercise a day.

"I just need to hire a consultant and apply the windager coefficient like me when I was a rifle shooting player. I adjusted to how many miles per hour, and I could learn the basics of consultant work. Learn a little. I can explain to him why he is right. "

"Warren has improved as an investor since I met him, so the game keeps learning. I have to love the process of learning. There is an occult story about Mozart. 14 years old. The boy came to him and said: "I want to learn to be a great composer." You started composing when you were only 8 or 9 years old. "

"It doesn't follow the example of a 4 0-yea r-old investor."

"I often receive such questions from young entrepreneurs. It's a very smart question: I see a rich elderly person:" How can I be like you?

Capital distribution:

"Find a lot of money that you don't need to make anymore." "I don't think the successor is as good as Warren's capital distribution."

"It's easy to withdraw American Express from Cola and Gillett, but American Express is an extremely powerful business. Was just out of the recession, and it was an abuse in the 1920s. It may be, but you can live long.

"Let's spend every day a little smarter than when we wake up. Filingally, do our job faithfully. Going step by step, but by preparing for a sudden start, you will learn discipline. I exercise a day.

"I just need to hire a consultant and apply the windager coefficient like me when I was a rifle shooting player. I adjusted to how many miles per hour, and I could learn the basics of consultant work. Learn a little. I can explain to him why he is right. "

"Warren has improved as an investor since I met him, so the game keeps learning. I have to love the process of learning. There is an occult story about Mozart. 14 years old. The boy came to him and said: "I want to learn to be a great composer." You started composing when you were only 8 or 9 years old. "

"It doesn't follow the example of a 4 0-yea r-old investor."

"I often receive such questions from young entrepreneurs. It's a very smart question: I see a rich elderly person:" How can I be like you?

Capital distribution:

"Find a lot of money that you don't need to make anymore." "I don't think the successor is as good as Warren's capital distribution."

"It's easy to withdraw American Express from Cola and Gillett, but American Express is a very powerful business.

Annual General Assembly: "Many of the annual meetings (corporate) are organized to avoid groups like you.

"Now, the public bidding auction is simply done to make the brain muddy. Get social evidence, tends to bid and replay, causing mult i-reactionary withdrawal symptoms. Is disappeared ... it is absolutely designed to manipulate people. "

"The problem with the shield auction is that people who make a technical mistake often make a successful bid like the case where the shell paid twice the shell. You cannot pay twice.

"Banks were better than we had thought. We have made billions of dollars (hundreds of billions of yen) from Amex. My only expectation is that we will continue to make such mistakes. That's it. "

"Financial institutions make us anxious if they try to do well."

"What is exciting?. A business that could sell for $ 10 billion would probably not have borrowed $ 100 million in its business itself, but the owner of the business is open to the stock, so on documents. So the billions of dollars were able to borrow on e-twent y-th e-two borrowed companies.

"I think many of the ways of bankruptcy) are quite terrible. The court itself has entered the bidding business to attract bankruptcy procedures ..."

"How to behave in a certain place will help you in a surprising way later."

"If you get a job in your life, you have to behave a reasonable behavior. If you are a beer, you can go to the strip club, but if you are a bishop in Boston, you should not go."

"There is no reason for the economy is not active. If not, what is it?"

"How the best part of psychology and economics in the wise economist's head interacts? Bend an economics a little to fit psychology. I don't think it's so difficult. "

"Now, the public bidding auction is simply done to make the brain muddy. Get social evidence, tends to bid and replay, causing mult i-reactionary withdrawal symptoms. Is disappeared ... it is absolutely designed to manipulate people. "

"The problem with the shield auction is that people who make a technical mistake often make a successful bid like the case where the shell paid twice the shell. You cannot pay twice.

"Banks were better than we had thought. We have made billions of dollars (hundreds of billions of yen) from Amex. My only expectation is that we will continue to make such mistakes. That's it. "

"Financial institutions make us anxious if they try to do well."

"What is exciting?. A business that could sell for $ 10 billion would probably not have borrowed $ 100 million in its business itself, but the owner of the business is open to the stock, so on documents. So the billions of dollars were able to borrow on e-twent y-th e-two borrowed companies.

"I think many of the ways of bankruptcy) are quite terrible. The court itself has entered the bidding business to attract bankruptcy procedures ..."

"How to behave in a certain place will help you in a surprising way later."

"If you get a job in your life, you have to behave a reasonable behavior. If you are a beer, you can go to the strip club, but if you are a bishop in Boston, you should not go."

"There is no reason for the economy is not active. If not, what is it?"

"How the best part of psychology and economics in the wise economist's head interacts? Bend an economics a little to fit psychology. I don't think it's so difficult. "

"Now, the public bidding auction is simply done to make the brain muddy. Get social evidence, tends to bid and replay, causing mult i-reactionary withdrawal symptoms. Is disappeared ... it is absolutely designed to manipulate people. "

"The problem with the shield auction is that people who make a technical mistake often make a successful bid like the case where the shell paid twice the shell. You cannot pay twice.

"Banks were better than we had thought. We have made billions of dollars (hundreds of billions of yen) from Amex. My only expectation is that we will continue to make such mistakes. That's it. "

"Financial institutions make us anxious if they try to do well."

"What is exciting?. A business that could sell for $ 10 billion would probably not have borrowed $ 100 million in its business itself, but the owner of the business is open to the stock, so on documents. So the billions of dollars were able to borrow on e-twent y-th e-two borrowed companies.

"I think many of the ways of bankruptcy) are quite terrible. The court itself has entered the bidding business to attract bankruptcy procedures ..."

"How to behave in a certain place will help you in a surprising way later."

"If you get a job in your life, you have to behave a reasonable behavior. If you are a beer, you can go to the strip club, but if you are a bishop in Boston, you should not go."

"There is no reason for the economy is not active. If not, what is it?"

"How the best part of psychology and economics in the wise economist's head interacts? Bend an economics a little to fit psychology. I don't think it's so difficult. "

"There is a huge wisdom of Franklin, and the talent. Franklin played four instruments. He was a leading scientist in the United States, as an inventor, a top writer, a politician and charity. There was no one like him. "

"The idea of ​​safety margin, Graham forecast will never be abolished. The idea that the market will be your hand will never be abolished. The idea that it is objective and reckless will never It wouldn't have been a great idea.

"Ben Graham has been able to find out what is sold at a low price of draft capital per share from the crash of the 1930s ... but 1930. When the world was shocked by the worst economy in the past 600 years, it was generally reduced to a low level in 600 years after inflation adjustment. I think Ben Graham is gradually short of breath, and even if the ruins are gone. The Glaham supporters actually started to do what they had done so far by changing the Geiger counter. Continued the definition.

"I'm bullish for Berkshire Hathaway. I think there may be a big waiting time, but I think a good day is waiting."

"Personally, I think Berkshire will be much larger and stronger than it is now. Whether the stock price will be a good investment is another matter. We are always guaranteed from the past. That means getting worse. " "

"We have decided on this tw o-person system. If we were alone, it would not work. Even if we could make the most spiritual and wise person on the earth, it was very boring. You will need a little personality to do the extreme length of the festival.

"I don't think the operation of hal f-and half is good. I don't need handling. The main thing is that there are people who operate and don't break or damage them."

"Berkshire has the lowest turnover of any major American company. The Walton family owns more stock in Walmart than Buffett owns in Berkshire. They have a very unusual shareholder structure that sees itself as the owners, not just the owners of a little piece of paper."

"Future returns for Berkshire and Wesco will not be what they have been. The only difference is this: Today, it seems to be seen as the CEO's duty to increase the stock price. This leads to all kinds of foolish behavior. We want to tell it like it is. I am happy with 90% of my net worth in Berkshire stock. I will strive to increase it at a reasonable pace without taking undue risk or using leverage. It would be a shame if we couldn't. The businesses Berkshire acquires will provide a pre-tax return of 13% on what we paid for them, maybe more. Cost of capital 3% (made from other people's money in the form of float), it's a hell of a business. Berkshire shareholders need not despair completely. Berkshire is not what it used to be in terms of (future) composition, but it's still a hell of a business."

BETA: "Beta, modern portfolio theory, none of this makes sense to me.

"A typical stock investor can make money by predicting the outcome of a practice development. Fundamental analysis can't predict that.

"I think it's very useful to think of a free market economy, or a partially free market economy, as the equivalent of an ecosystem..."

"Black-Scholes is a system that knows nothing. If you don't know anything about value, you only know the price, Black-Scholes is very good at guessing what a 90-day option is going to be worth. But the longer the time horizon, the more crazy it becomes to use Black-Scholes. For example, Costco issued stock options with strike prices of $30 and $60, and Black-Scholes valued the $60 option higher. That's crazy." "Black-Scholes works for short-term options, but for long-term options, if you think you know anything about the underlying, you're crazy to use Black-Scholes.

Board of Directors

"Directors must be absolutely willing to step aside at any time and be willing to make the tough decisions."

"The system of the board of directors of a large American company. The top person sits there and has authority. He does something stupid, and when he looks around the board, no one disagrees. He raises his executive salaries every year, he goes on corporate jets to see interesting factories and so on, and in a typical American board of directors, they face extreme dysfunction as corrective decision makers. They only act when, again due to incentive forces, they start to make themselves look stupid or when things get so bad that they threaten legal liability. This is Munger's rule. I mean, there are times when they don't follow Munger's rule, but generally, when the top person is a little crazy, the board of directors is a very inefficient fixer. "I think it's an undeniable truth that the human brain has to work in a model. The trick is to make your brain work better than the other person's brain, because your brain is the most basic Because I understand the model.

"The brain's basic neural network exists through extensive genetic and cultural evolution. And it's not Fermat/Pascal, it's a very crude, short-cut approximation. It has elements of Fermat/Pascal. But it's not good. Just like if you want to be a golfer, you can't use the natural swing that evolution gave you. You have to learn to have a certain grip and swing in a different way to reach your full potential as a golfer.

"The human brain, with its imperfect and limited capacity, is drawn to use whatever is readily available to it. And it cannot use what it cannot remember or is prevented from recognizing because it is heavily influenced by one or more psychological tendencies that influence it..." "... the deep structure of the human mind requires that the full capacity of almost any species is to learn everything fluently - whether we like it or not."

"It's hard to predict what two brands will do in the market. Sometimes they'll behave like gentlemen, sometimes they'll fight. I don't know how to predict whether they'll fight peacefully or die. If you could know that, you'd make a lot of money."

"The right way of thinking is how Zek Hauser plays a bridge. It's very simple."

"Your brain does not naturally know the bridge that Zek Hauser knows." For example, "people do not respond to losses and benefits. A great bridge player like Zek Hauser may be so, but it's a trained reaction. Ordinary people unconsciously ... "

"The Internet bubble around 2000 is the most extreme in modern capitalism. In the 1930s, the worst depression occurred in the past 600 years, today, in the opposite sense, almost the same extreme. is."

"Of course, one of the first big bubbles was the huge and terrifying Nankai bubble in the UK. The aftermath was interesting. Many people don't remember what happened after the Nankai Bubble. It has been banned for decades in the British.

"The bullish market hits a person's head. If you are a duck in the pond, if the pond rises for the storm, you begin to rise in the world, but it's not because of the pond, it's my fault. I think.

"The larger the scale, the greater the bureaucracy, the more bureaucraticism, the more territorial consciousness, and the motivation. For example, at & amp; amp? At & amp; amp? Who is the bureaucraticism of the shareholder, but it's not that the work is good. Until you deliver, you will not end your work, so you will not be able to do it. ................. Incent is not the best in the government. It's a problem.

"Sears had many unnecessary humans. It was very bureaucratic. It was too late to think, and there was an established idea. The bureaucracy that fell into a functional failure.

"We've made our money from really high-quality businesses. In some cases, we've bought entire businesses. In some cases, we've acquired entire businesses. But if you analyze what's happened, the big money has come from quality businesses. And most of the other people who've made a lot of money have done it from quality businesses." "I spoke recently with Jack McDonald, who teaches our principled investing course at Stanford Business School. He said it's like being a Maytag repairman.

Stock buybacks

"A lot of the stock market is designed to support rising stock prices, not to pursue bargains. Thirty or forty years ago, it was very profitable for companies to aggressively buy their own stock. They simply had an incentive to buy it for less than it was worth."

"There are two kinds of businesses. One earns 12% and you can withdraw it at the end of the year. The other earns 12% but you have to reinvest any excess cash. I remember people looking at their equipment and saying: 'That's all my profit. I hate that kind of business.

"When prices go up because of a shortage or supply shortage, people go crazy, but that's capitalism."

"I think it's very unfair, but capitalism without failure is like a religion without hell."

"Capitalism is a pretty cruel place.

"Our cash speaks for itself. If we had a lot of great ideas, we wouldn't have this much cash."

"There are worse situations than drowning in cash and sitting, sitting, sitting. When I remember when I wasn't drowning in cash, I don't want to go back.

"Those who don't face improvement because it's change will face change that is not improvement.

"It's hard to judge combinations of personality, intelligence, etc. That's why there are so many divorces. (Laughs) No matter how much you know about your spouse, many people get divorced. It's not easy. If you have someone who pours money into you like Dennis Kozlovsky and has vodka coming out of their body parts at parties, and it looks like Sodom and Gomorrah, maybe it's not what you're looking for (Laughs). But there are things that are even harder than that. If you had the unfortunate experience of gaining this knowledge, welcome to the human race. (Laughs)"

"At Berkshire Hathaway, we don't like to compete with Chinese manufacturers."

"I will give you a book of Chardini, and if you have half of my thoughts, you will immediately order a copy for all your children and many friends. There will be no more investment.

"As I read the Kikero page, I found many materials that praise my lifestyle ..." "Kikero's words have been backed by the common sense I have denied for many years. He raised the satisfaction.

A circle of ability

"We have a lot to experience. We have three baskets: In, out, and very difficult ... if you don't have a special insight, it's a" very difficult "basket. I'll put it in. Everyone needs to find a specific field and concentrate on it. "

"If you have technology, you already know the limit. Whether you have exceeded the threshold) is to answer that." Poor Charlie.

"We know the limits of our abilities better than anyone else," this is very useful. "

"Warren and I are avoiding someone else in Berkshire. If you don't know the last minute, you can't say it's your true ability." < SPAN> I will give you any more investment for all of your children and many friends. ""

"As I read the Kikero page, many materials that praised my lifestyle ..." "Kikero's words have been a backdown of the common sense I've denied for many years. He raised the satisfaction.

A circle of ability

"We have a lot to experience. We have three baskets: In, out, and very difficult ... if you don't have a special insight, it's a" very difficult "basket. I'll put it in. Everyone needs to find a specific field and concentrate on it. "

"If you have technology, you already know the limit. Whether you have exceeded the threshold) is to answer that." Poor Charlie.

"We know the limits of our abilities better than anyone else," this is very useful. "

"Warren and I are avoiding someone else in Berkshire. If you don't know the last minute, you can't say your true ability." If you have half of your time, you will not be able to make any more copies.

"As I read the Kikero page, many materials that praised my lifestyle ..." "Kikero's words have been a backdown of the common sense I've denied for many years. He raised the satisfaction.

A circle of ability

"We have a lot to experience. We have three baskets: In, out, and very difficult ... if you don't have a special insight, it's a" very difficult "basket. I'll put it in. Everyone needs to find a specific field and concentrate on it. "

"If you have technology, you already know the limit. Whether you have exceeded the threshold) is to answer that." Poor Charlie.

"We know the limits of our abilities better than anyone else," this is very useful. "

"Warren and I are avoiding someone else in Berkshire, do something better. If you don't know the last minute, you can't say your true ability."

"Warren and I don't feel that there is a great advantage in the hig h-tech field. In fact, we feel very disadvantageous when trying to understand the essence of technical progress such as software and computer chips. So we have a strong idea of ​​this, because we have a personal lack of skills. And if I had to live as a musician, I would like to live in the cycle. Is it necessary to have a skill that you don't have? You have to be the best tennis player in the world, even if you want to play the advantage of where you are. You may probably be able to become the best piping contractor in Bemiji. You need the power of your will, but after a while, you will gradually become able to control the pipe work.

"People who work with cognitive devices have to know their limits so that people who work with tools have to know their limits."

"When I faced the paradox, I think it's either a horse that has reached so far, or a fruit near my discipline limit. Thinking about who you are. It gives excitement to life. "

Do you know the cliche that "the opposite is the opposite"? "The opposite sex doesn't get together. Everyone who does a complicated job needs a colleague. It's very useful just to have a rule that you have to organize your thoughts with someone."

"The key is to be a control owner. It would be difficult to make that kind of decision in the committee. < Span>" Warren and I do not feel that there is a big advantage in the hig h-tech field. In fact When we try to understand the essence of technical progress such as software and computer chips, we find it very disadvantageous. Again, this is a very har d-working cycle. If you have to do it ... if you are a scale of civilization, you need to be at your skills. If you do it, you will be able to determine what your advantage is. Even if you want to be the best tennis player in the world, you may be hoped by other players. If you want to be the best piping company, you will probably need a thre e-thirds. You will be able to know anything about the piping work, and you will dominate the piping work of Vemiji.

"People who work with cognitive devices have to know their limits so that people who work with tools have to know their limits."

"When I faced the paradox, I think it's either a horse that has reached so far, or a fruit near my discipline limit. Thinking about who you are. It gives excitement to life. "

Do you know the cliche that "the opposite is the opposite"? "The opposite sex doesn't get together. Everyone who does a complicated job needs a colleague. It's very useful just to have a rule that you have to organize your thoughts with someone."

"The key is to be a control owner. It would be difficult to make that kind of decision in the committee. ・ When trying to understand the essence of technical progress such as chips, we feel that we are very disadvantageous, so we tend to avoid these things because of lack of personal abilities. Again, this is a very har d-t o-use cycle. If it doesn't work, if the music is the scale of the civilization, I need to be at the same level. If you do not have a game, you have to determine where you are. Even if you want to be the best tennis player in the world, you may not be able to go through other players. If you want to be a piping contractor, you will probably need a thre e-thirds of your will. You will know anything about anything, and you will dominate Bemiji's plumbing work.

"People who work with cognitive devices have to know their limits so that people who work with tools have to know their limits."

"When I faced the paradox, I think it's either a horse that has reached so far, or a fruit near my discipline limit. Thinking about who you are. It gives excitement to life. "

Do you know the cliche that "the opposite is the opposite"? "The opposite sex doesn't get together. Everyone who does a complicated job needs a colleague. It's very useful just to have a rule that you have to organize your thoughts with someone."

"The key is to be a control owner. It would be difficult for the committee to make that kind of decision.

"[Sarnish]: If you look at the silver business, you can see that we are familiar with the commodity. [Laughs). We have not yet reached no n-interest rates. yeah."

"... I lost the largest commodity boom in history, but this will continue in the future!"

"Organized common sense (or insane), that is, very basic knowledge, is an extremely powerful tool. Computers are very dangerous.

"In contrast to the wisdom of having an unusual sensation), it is also a thing that can adjust the weaknesses. If you hit many things, you will not be satisfied."

"In the corporate world, if there is no analyst, dudeliography, or horses, you only need to describe hell.

"It's not enough to just buy an appropriate business. You need a reward system that makes management satisfied. Berkshire Hathaway does not have a (single) system. There are various systems. It is very simple, and it has been a surprisingly good thing to do with See's. I have never hired a reward.

"If you want to hire a reward consultant, it's better to throw your viper under the front shirt.

"Carnegie was always proud of receiving only a small amount of salary. Rockefeller and Vanderbilt were the same. It was a common culture of different times. All of them are founding. I was so happy that I was very conscientious and had to disappoint from the pressure of getting paid. There was a great advantage in receiving a part of the profits to the management of Berkshire, which matches other shareholders. "

"CEOs are much more kind and generous than people, and they are obliged to relieve jealousy and grudges. People should live as long as they benefit from life. Most of these people will pay less than their own value to become the American Senator. There is a lot of meaning to receive it.

It is easy to have a fair reward system that is "a high probability of mining when there is a lot of supply," but there is a remarkable unfair system in which about half of companies receive excessive rewards.

"By buying a decent company at a decent price, it may be a competitive advantage, but it will not be a great company or a great price. There are many specialists in acquired and too much.

"Many markets have been deprived of a few companies of a few companies, or 5 or six companies, and some of these markets are not so profitable. In other markets, everyone has been very successful for many years, and in some markets, it is reasonable for investors, and in some markets, destructive competition. You've tried to understand why the wealth of shareholders is destroyed, and you'll be able to make a more safe trip. However, the amount of the airline from Kitty Hawk is now a negative number of the airline, so the airline has been released. The wealth of shareholders has been destroyed, but in other fields, for example, a certain number of major serial manufacturers. If you can get it, you can make a 40 % profit, but why is it so crazy? Despite the fact that it seems to be, I do not understand < Span> It is easy to have a fair reward system, but about half of companies are the top. There is a remarkable unfair system that receives excessive rewards.

"By buying a decent company at a decent price, it may be a competitive advantage, but it will not be a great company or a great price. There are many specialists in acquired and too much.

"Many markets have been deprived of a few companies of a few companies, or 5 or six companies, and some of these markets are not so profitable. In other markets, everyone has been very successful for many years, and in some markets, it is reasonable for investors, and in some markets, destructive competition. You've tried to understand why the wealth of shareholders is destroyed, and you'll be able to make a more safe trip. However, the amount of the airline from Kitty Hawk is now a negative number of the airline, so the airline has been released. The wealth of shareholders has been destroyed, but in other fields, for example, a certain number of major serial manufacturers. If you can get it, you can make a 40 % profit, but why is it so crazy? Despite the fact that it seems to be, it is easy to have a fair reward system that does not understand a lot of mining, but about half of companies are ove r-th e-counter. There is a significant unfair system to receive.

"By buying a decent company at a decent price, it may be a competitive advantage, but it will not be a great company or a great price. There are many specialists in acquired and too much.

"Many markets have been deprived of a few companies of a few companies, or 5 or six companies, and some of these markets are not so profitable. In other markets, everyone has been very successful for many years, and in some markets, it is reasonable for investors, and in some markets, destructive competition. You've tried to understand why the wealth of shareholders is destroyed, and you'll be able to make a more safe trip. However, the amount of the airline from Kitty Hawk is now a negative number of the airline, so the airline has been released. The wealth of shareholders has been destroyed, but in other fields, for example, a certain number of major serial manufacturers. If you can get it, you can make a 40 % profit, but why is it so crazy? I can't understand it, despite it looks like I'm doing it.

"Even a intelligent person, in a world where competition with other intelligent and har d-working people competes, really valuable knowledge is limited, and not always know anything about everything. It makes sense to accumulate very good knowledge. "

"The major law in life is that stupid organizations in a way to deal with a complex system are very likely to be stupid in other ways.

"Understanding both the power of the composite return and the difficulty of obtaining it is a spirit of understanding many things."

"Do not interrupt unnecessarily

"Understanding both the power of compound interest and the difficulty of gaining it is an important point to understand many things.

"Don't make the wolf cry about how difficult it is to match the old rate. See how difficult it is to earn $ 100 million before tax. Most of the people have achieved it. No, $ 1 billion, $ 10 billion ... ".

"I have a black belt with a shinsey, because it's natural. Some women, like the women I know, have a black band with pocket money. But they are born. What they gave me was the black belt of "Zuzuushi". "

"Most people tend to process new and frustrated information from an early and later, and Philip Wiley said:" What they already know and never know. Cannot be sandwiched. "

"The remarkable example of Charles Darwin is to avoid the confirmation bias. I'm a biography enthusiast, so I think Darwin probably changed my life. He was not intelligent, but he was buried in Westmins.

"The human brain is very similar to human eggs, and human eggs have a closed device. If one sperm is entered, the next sperm will not enter. Of course, conclusions. If you publish it, you will hit your head.

"This is why the organization asks for a promise. There is a reason to have a wedding." < SPAN> "Even if you're a intelligent person, in a world where you compete with other intelligent and har d-working people, it's really true. It is meaningful not to always know anything about everything. "

"The major law in life is that stupid organizations in a way to deal with a complex system are very likely to be stupid in other ways.

"Understanding both the power of the composite return and the difficulty of obtaining it is a spirit of understanding many things."

"Do not interrupt unnecessarily

"Understanding both the power of compound interest and the difficulty of gaining it is an important point to understand many things.

"Don't make the wolf cry about how difficult it is to match the old rate. See how difficult it is to earn $ 100 million before tax. Most of the people have achieved it. No, $ 1 billion, $ 10 billion ... ".

"I have a black belt with a shinsey, because it's natural. Some women, like the women I know, have a black band with pocket money. But they are born. What they gave me was the black belt of "Zuzuushi". "

"Most people tend to process new and frustrated information from an early and later, and Philip Wiley said:" What they already know and never know. Cannot be sandwiched. "

"The remarkable example of Charles Darwin is to avoid the confirmation bias. I'm a biography enthusiast, so I think Darwin probably changed my life. He was not intelligent, but he was buried in Westmins.

"The human brain is very similar to human eggs, and human eggs have a closed device. If one sperm is entered, the next sperm will not enter. Of course, conclusions. If you publish it, you will hit your head.

"This is the reason why the organization asks for a promise. There is also a reason to have a wedding." It is meaningful not to always know anything about everything. "

"The major law in life is that stupid organizations in a way to deal with a complex system are very likely to be stupid in other ways.

"Understanding both the power of the composite return and the difficulty of obtaining it is a spirit of understanding many things."

"Do not interrupt unnecessarily

"Understanding both the power of compound interest and the difficulty of gaining it is an important point to understand many things.

"Don't make the wolf cry about how difficult it is to match the old rate. See how difficult it is to earn $ 100 million before tax. Most of the people have achieved it. No, $ 1 billion, $ 10 billion ... ".

"I have a black belt with a shinsey, because it's natural. Some women, like the women I know, have a black band with pocket money. But they are born. What they gave me was the black belt of "Zuzuushi". "

"Most people tend to process new and frustrated information from an early and later, and Philip Wiley said:" What they already know and never know. Cannot be sandwiched. "

"The remarkable example of Charles Darwin is to avoid the confirmation bias. I'm a biography enthusiast, so I think Darwin probably changed my life. He was not intelligent, but he was buried in Westmins.

"The human brain is very similar to human eggs, and human eggs have a closed device. If one sperm is entered, the next sperm will not enter. Of course, conclusions. If you publish it, you will hit your head.

"This is why the organization asks for a promise. There is also a reason to have a wedding."

"In my long life, I have never seen a management consultant's report that does not end in the next paragraph:" This state really needs more management advice. " is. I always read the last page. Of course, Berkshire does not hire a management consultant, so I only hire a management consultant. Occasionally, stupids are hired by no n-profit organizations. [lol)"

"We have a history of entering a place where nobody does when things are really bad."

"The system has deteriorated and the reputation for the system is worse than the system. He says, many people are crazy about corporate governance. "Some of them include the Republican members who should be the biggest supporters of this system.

"I have longed for this company as I broke my rules," said Manger. In my life, there are not many people who have done anything more to change the retail world in a good direction and increase the human happiness for customers.

"We do not have a isolated group (advanced executives) surrounded by servants. Berkshire's headquarters is a small small suite. We have just returned from the Berkshire Board of Directors, but in the Kiwit board of directors. I felt it was too wide, gorgeous, and uncomfortable. "

Capital cost

"Of course, capital is not free. Of course, capital is not free. Calculating borrowing costs is easy, but the theorists are confused about capital costs. But it should not be invested in 80 %. "

"If you execute a few times, your actions will really change. A certain president said that if you could execute three people every year, it would be much easier to govern. He said, "Oh, so, I publish the list of people I am considering (laughs).

"The foolishness of the crowd" is a tendency for people to be like a leming in a certain situation, and explains the very stupid ideas of the excellent people and the very stupid behavior. It is a sad fact that all institutional investors are afraid that all institutional investors are different from other crowds.

"For many of our shareholders, our shares are all shares we own, and we strongly recognize this. Our (conservative) culture is wonderfully rooted.

It is flowing deep. "Berkshire's Foundation (after the death of Buffett, Berkshire's shares are transferred to the Buffett Foundation), because of the continuity of culture, because it is a asset, because we maintain the continuity of culture." We Is a very ol d-fashioned approach, such as Ben Franklin and Andrew! Many of the companies that are acquired are as crazy and old like us. " "

"Do you really think that Warren will have a belief until the age of 75, do you really think he will be a job that conveys this culture? Is there any more important? There must be many things to do.

"We got a house in an unprecedented way in this country. When I asked Joe how he bought a new Cadillac, he would have borrowed his house as collateral. We are dissatisfied with Equity. Holding is a new way to get a great deal of slave by credit cards and subprime loans. It is not always the case that it is a free market.

"In the United States, we have promoted consumer finance very powerfully. In the United States, we have promoted consumer trust very powerfully. In the end, if we continue to increase, we will stop growing. As herbalstein said. , "If something doesn't last forever, it will stop." When it stops, you may feel uncomfortable. I have nothing to say, besides herbalstein words. However, I am worried.

"If you give the top 15 ideas, most people will not be here."

"For decades, our usual way is to buy more and more if the stock price of what we like. Sometimes something happens and we may notice that we are wrong. However, if you can have a good confidence in your judgment, you can use the stock price.

"If you don't really want to hear or say something unpleasant, you will almost automatically react to disgust. You have to educate yourself."

"Just because it hasn't happened before doesn't mean it won't happen again. There's no mathematical science to it, so it's a difficult call. We're just trying to be conservative."

"Generally, it's good to run big current account deficits and big budget deficits and let them grow. You'd think there would be a payoff at the end. But not all alternatives look great compared to the U. S. What I see as fiscal immorality could continue for some time without paying the price."

"We started from a position of strength. It's not like we have an alternative. I understand the sentiment of people who like to invest in the U. S. We have 12-13% of the population unemployed, most 28% of the population unemployed. Would you rather go to Europe, where you live at home and get paid by the government, or stay in politically unstable Brazil or Venezuela? It is not at all unreasonable that some people still like America, despite its flaws. Any misdeed can go on for a long time without paying the price. "

"Almost all good businesses deal in 'pain today, profit tomorrow.'"

"Turn on the TV and you'll see mothers of the most obvious criminals a human being can diagnose, and they all believe their sons are innocent. It's simple psychological denial. They think they can bear it because the reality is too painful to bear. We all do it to some degree. And it's a common psychological assessment that causes horrible problems. "

"Everyone hunkered down, took loose (accounting) models, invented exotic derivatives linked to theoretical models, and the result was that the profits blessed by the accountants were not actually earned. There was no such thing. [Derivative accounting] is disgusting. If I'm right, there will be hell to come. Everyone should prepare for their derivative books to blow up.

"None of the CEOs looking at the books today understand what's going on.

"Stupid, dishonest accountants allowed a totally incompetent accounting genie to get knocked down in the derivative books. And once that happens (people get positions, etc.), it's impossible to recreate it in a bottle.

"People don't think about the results. People start by trying to correct changes in interest rates, but it's very difficult and complicated. As a result, the results (reported) have become different. There is a new derivative to a lying company. Someone must come and say: "There are many clauses that derivatives must provide collateral if the trust of the parties declines. It's like margin. It seems that no one is aware of the stability.

The fact that the derivative accounting to make the United States a sewer is an insult to the sewerage. "

"Generally, if the outside directors will actively act to protect the interests as a shareholder, it's crazy.] In the United States, the Board of Directors is seriously confused. Only when I was, my friend Joe was asked to be a director of Northwestern Bell, but he was joking. [I think that if there is a director who does not need money, you will get a better director. If it is half of your income and the full retirement allowance, you will not be a very independent person. However, if you have the money and you do not want to lose, you will act more independently. "

"If the investment trust manager is independent, I'm the main character of Bolshoi Ballet. [Laughs).

"I get $ 150, 000 a year from the company, and the director who needs that money is not independent."

"I think that there is no D & A insurance is a great improvement. If you refute, no one with the money will be a director, but I think the net net will be better." < Spanan. " > "People don't think about the results. People start by trying to correct interest rates, but they are very difficult and complicated. It is now a sophisticated company to make it a new derivative. However, there is a lot of clauses that "derivatives must provide collateral if the party's trust is reduced. It seems that no one is aware of the system.

The fact that the derivative accounting to make the United States a sewer is an insult to the sewerage. "

"Generally, if the outside directors will actively act to protect the interests as a shareholder, it's crazy.] In the United States, the Board of Directors is seriously confused. Only when I was, my friend Joe was asked to be a director of Northwestern Bell, but he was joking. [I think that if there is a director who does not need money, you will get a better director. If it is half of your income and the full retirement allowance, you will not be a very independent person. However, if you have the money and you do not want to lose, you will act more independently. "

"If the investment trust manager is independent, I'm the main character of Bolshoi Ballet. [Laughs).

"I get $ 150, 000 a year from the company, and the director who needs that money is not independent."

"I think that there is no D & A insurance is a great improvement. If you argue, no one with the money will be a director. But I think the net net will be better." "People." Started with trying to change the interest rate, but as a result, the fence was complicated. So, this is a huge and sophisticated company to use a new derivative. I have to come and say: "Delivatives have many clauses that if the trust of the parties declines, they must provide collateral. It's like margin. It seems that no one is aware of the system.

The fact that the derivative accounting to make the United States a sewer is an insult to the sewerage. "

"Generally, if the outside directors will actively act to protect the interests as a shareholder, it's crazy.] In the United States, the Board of Directors is seriously confused. Only when I was, my friend Joe was asked to be a director of Northwestern Bell, but he was joking. [I think that if there is a director who does not need money, you will get a better director. If it is half of your income and the full retirement allowance, you will not be a very independent person. However, if you have the money and you do not want to lose, you will act more independently. "

"If the investment trust manager is independent, I'm the main character of Bolshoi Ballet. [Laughs).

"I get $ 150, 000 a year from the company, and the director who needs that money is not independent."

"I think the lack of D & A insurance is a great improvement. If you argue, anyone with the money will not be a director, but I think the net net will be better."

"Portfolio insurance was popular a few years ago. Major financial institutions managed funds and sold them as highly sophisticated methods to reduce risks, and made a lot of money. A relatively small amount of money has caused a 2 % decline in a day, but the potential for a disaster was compared to the 1980s. I don't know who will be on fire, but when it happens, it will definitely play a role in the door.

"We have this investment discipline that expects a thick pitch. If I were evaluated in light of the benchmark, forced to be completely invested, and started a business that would crawl over the shoulders. You'll be able to add to it.

Discount cash flow:

"Warren is talking about discount cash flow. I have never seen him doing that." [Buffett answered. "If the value of a company is not shouted, it's too close.]

"Berkshir e-type investors tend to do more diversified investments than other investors, and scholars praise the idea of ​​distributed investments, making intelligent investigators terribly. I think that the idea is that my own investment results are not much different from the average investment result. So if you don't train you, why will it rise like that?

"The idea of ​​excessive diversified investment is crazy."

"The total payment amount of dividends is almost equivalent to the amount lost in trading and investment advice, so there is zero clan for shareholders. This is a very strange way to operate democracy.

"If you lived in 1973 to 1974, or if you lived in the early 1990s ... there was a list of waiting in order to get out of Country Club. You should understand. "

"Unfortunately, the stock prices of ordinary stocks are large and stupid as a whole. Stock prices, like bonds, are evaluated based on reasonable use predictions to produce future cache. There is also a part that is evaluated like a Rembrandt board.

"We are not interested in quarterly performance (although we are interested in lon g-term performance), and we are not ready to make any quarterly business performance.

"What we dislike in modern capitalism is the expected game. Kissing is not a cousin, but a brothers who divide blood."

"We don't care about the unusual results. Everyone is trying to please Wall Street. It's not a small merit."

"Every time I see the word eBitDa, I think it should be replaced with the word" dazzling "performance."

"The huge macro economy forecast has never made a profit for me or Warren." "Economics is a queen of soft science in many ways. It is expected to be better than others. In my opinion. My view is that economics is more of an interdisciplinary science than other soft science.

"... The great Nobel award winner Max Plank, who discovered the plan, once tried to go on the path of economics. He gave it. Why did you give up on economics? The best solution is troublesome and uncertain.

"Economics should imitate the basic philosophy of physics, but it is almost always wrong in economics to seek accuracy in mathematical formulas like physics."

"Economicists are very unpleasant to talk about virtues and vicious. Economicists don't like talking about virtue and vicious, but I want to claim that economics has a great effect. The dissemination of doubl e-entry bookkeeping by the monastery, Luce de Pacholi, was a more ma n-made and more sincere of business.

"If I talk to a professor of economics, I have done it three times, but they will shrink and insult with fear. Ignore the second and third results. Become more simple.

The scale of the scale:

The chain store is very interesting on the theme of "scale of the scale". Think of it. The concept of a chain store is an attractive invention. You can get a huge biper power. There are many small labs, where you can experiment. And you can also specialize. If a dwarf tries to buy a 27 different product category while being influenced by a patrol salesman, it will make many stupid decisions. However, if you buy at the headquarters of a huge store, you can have very good people who are familiar with refrigerators buy it. Conversely, a small store in which one man makes all the purchases is proven. It's the same as the old tale of a small shop full of salt. A stranger came and told the owner of the store, "I'm selling a lot of salt." The master said, "That's not the case, but I should meet someone who sells salt. 1995. At the University of South California, he gave a lecture entitled "Classes on Investment Operation and Busines s-related Wisdom."

"In terms of which business succeeds and which business fails, the merit of the scale is miserable. In some business, the essence of things is toward the overwhelming advantage of one company The merits of these sedges are very large, for example, when Jack Welch joined General Electric: "It's the first or second place in every field. Or, or to withdraw.

"I think what is important for us, including the people of the media, is the main numbers: how the GDP per person grows? And this figure is very good. There is also a big flow, and it is not a stationary state.

"When I visit a university and give a speech, I'm accused of saying this. This is a good university, but the really wonderful educator is McDonald's." I hate that, and I think it's a slimy creature. However, McDonald's hires people with bad work habits, train them, go to work on time, and have good work habits. I think more things are better than Harvard University. The chain store is very interesting on the theme of < Span> "scale of the scale". Think of it. The concept of a chain store is an attractive invention. You can get a huge biper power. There are many small labs, where you can experiment. And you can also specialize. If a dwarf tries to buy a 27 different product category while being influenced by a patrol salesman, it will make many stupid decisions. However, if you buy at the headquarters of a huge store, you can have very good people who are familiar with refrigerators buy it. Conversely, a small store in which one man makes all the purchases is proven. It's the same as the old tale of a small shop full of salt. A stranger came and told the owner of the store, "I'm selling a lot of salt." The master said, "That's not the case, but I should meet someone who sells salt. 1995. At the University of South California, he gave a lecture entitled "Classes on Investment Operation and Busines s-related Wisdom."

"In terms of which business succeeds and which business fails, the merit of the scale is miserable. In some business, the essence of things is toward the overwhelming advantage of one company The merits of these sedges are very large, for example, when Jack Welch joined General Electric: "It's the first or second place in every field. Or, or to withdraw.

"I think what is important for us, including the people of the media, is the main numbers: how the GDP per person grows? And this figure is very good. There is also a big flow, and it is not a stationary state.

"When I visit a university and give a speech, I'm accused of saying this. This is a good university, but the really wonderful educator is McDonald's." I hate that, and I think it's a slimy creature. However, McDonald's hires people with bad work habits, train them, go to work on time, and have good work habits. I think more things are better than Harvard University. The chain store is very interesting on the theme of "scale of the scale". Think of it. The concept of a chain store is an attractive invention. You can get a huge biper power. There are many small labs, where you can experiment. And you can also specialize. If a dwarf tries to buy a 27 different product category while being influenced by a patrol salesman, it will make many stupid decisions. However, if you buy at the headquarters of a huge store, you can have very good people who are familiar with refrigerators buy it. Conversely, a small store in which one man makes all the purchases is proven. It's the same as the old tale of a small shop full of salt. A stranger came and told the owner of the store, "I'm selling a lot of salt." The master said, "That's not the case, but I should meet someone who sells salt. 1995. At the University of South California, he gave a lecture entitled "Classes on Investment Operation and Busines s-related Wisdom."

"In terms of which business succeeds and which business fails, the merit of the scale is miserable. In some business, the essence of things is toward the overwhelming advantage of one company The merits of these sedges are very large, for example, when Jack Welch joined General Electric: "It's the first or second place in every field. Or, or to withdraw.

"I think what is important for us, including the people of the media, is the main numbers: how the GDP per person grows? And this figure is very good. There is also a big flow, and it is not a stationary state.

"When I visit a university and give a speech, I'm accused of saying this. This is a good university, but the really wonderful educator is McDonald's." I hate that, and I think it's a slimy creature. However, McDonald's hires people with bad work habits, train them, go to work on time, and have good work habits. I think more things are better than Harvard University. "

"I would say that the decline of public schools is one of the greatest disasters of our lifetimes. We've turned one of the greatest successes in the history of the planet into one of the greatest disasters in the history of the planet."

"The theory of modern education is that you need a general education before you can specialize. And I think you need a certain amount of general education to be a good stock investor.

"If you don't keep learning, other people will overtake you. Temperament alone won't do it. You need curiosity for a long, long time."

"To finish first, you have to finish first. Don't go to a place where you can come back. It's funny, as a guy whose grandfather was a lawyer and a judge -- he rode the veteran wave to Harvard Law School -- I wanted to be involved in so many different businesses. I went straight into my peers' businesses and kept doing better than them. How did I do that? Self-education, mental discipline, big ideas that really worked."

Efficient Market Theory:

"We don't believe markets are perfectly efficient, or that broad diversification produces good results. We believe that almost all good investments are relatively low diversification. Maybe 2% of people will come to one side of our stage and the other 98% will believe what they're told."

"Berkshire's entire record was achieved without a shred of attention to the esoteric forms of efficient market theory. Efficient market theory came out of economics, went into corporate finance, and morphed into obscene things like the capital asset pricing model. You can make a lot of money a year just by investing in volatile stocks. "Unless you believe in the tooth fairy, you can easily beat the market by 7 percentage points."

"I think it's almost correct that the market is efficient. But I don't think it's completely efficient. Depending on whether it's completely efficient or to some extent, humans like us are like this. It is quite efficient to have a great opportunity to get a rare record. It is not a matter of fact in the investment world.

"I call the people who ran into extreme efficient market theory. It was an intelligent theory, and I was able to make a lot of calculations, so I was blessed with mathematics talent. He just understands his frustration for the people.

The possibility that the value of the whole stock will be ridiculously high is contrary to the difficul t-t o-form "efficient market theory" that many of you once learned from incorrect professors as a gospel. Your incorrect professors are too influenced by the "reasonable human" model of human behavior from economics, and are too influenced by the "fool's human" model obtained from psychology and actual experience. It was.

"Efficient market theory is a wonderful economic science theory that has long been popular, despite the experience of Berkshire Hathaway. In fact, one of the economists who won the Nobel Prize saw Berkshire Hathaway every year. But the market is not as efficient as you think, and we say three sigma. It is better to change the Sigma than to change the theory just because the evidence is different. Yo."

"If there is too much energy of fossil fuels to make ethanol, I understand that it is a very stupid way to solve the energy problem. [Laughs).

"The interesting thing is that this field is very large. One of the things you need for modern civilization is energy." "

"People always underestimate the ability to increase the transport capacity of the earth." < SPAN> "I think the market is almost correct. But I don't think it's completely efficient. Complete. The difference between the efficiency and to some extent is a great opportunity for humans like us to get such an unusual record, so we have a great investment performance. But it is not possible to invest in some people.

"I call the people who ran into extreme efficient market theory. It was an intelligent theory, and I was able to make a lot of calculations, so I was blessed with mathematics talent. He just understands his frustration for the people.

The possibility that the value of the whole stock will be ridiculously high is contrary to the difficul t-t o-form "efficient market theory" that many of you once learned from incorrect professors as a gospel. Your incorrect professors are too influenced by the "reasonable human" model of human behavior from economics, and are too influenced by the "fool's human" model obtained from psychology and actual experience. It was.

"Efficient market theory is a wonderful economic science theory that has long been popular, despite the experience of Berkshire Hathaway. In fact, one of the economists who won the Nobel Prize saw Berkshire Hathaway every year. But the market is not as efficient as you think, and we say three sigma. It is better to change the Sigma than to change the theory just because the evidence is different. Yo."

"If there is too much energy of fossil fuels to make ethanol, I understand that it is a very stupid way to solve the energy problem. [Laughs).

"The interesting thing is that this field is very large. One of the need for modern civilization is energy." "

"People are always underestimating the ability to increase the transport capacity of the earth," "I think it's almost correct that the market is efficient. But I don't think it's completely efficient. Completely efficient. It is difficult to make a great deal of investment because it has a great chance for us to get such an unusual record. But it is not possible for some people to do it.

"I call the people who ran into extreme efficient market theory. It was an intelligent theory, and I was able to make a lot of calculations, so I was blessed with mathematics talent. He just understands his frustration for the people.

The possibility that the value of the whole stock will be ridiculously high is contrary to the difficul t-t o-form "efficient market theory" that many of you once learned from incorrect professors as a gospel. Your incorrect professors are too influenced by the "reasonable human" model of human behavior from economics, and are too influenced by the "fool's human" model obtained from psychology and actual experience. It was.

"Efficient market theory is a wonderful economic science theory that has long been popular, despite the experience of Berkshire Hathaway. In fact, one of the economists who won the Nobel Prize saw Berkshire Hathaway every year. But the market is not as efficient as you think, and we are three sigma. It is better to change the Sigma than to change the theory just because the evidence is different. Yo."

"If there is too much energy of fossil fuels to make ethanol, I understand that it is a very stupid way to solve the energy problem. [Laughs).

"The interesting thing is that this field is very large. One of the things you need for modern civilization is energy." "

"People are always underestimating the ability to increase the transport capacity of the earth."

"According to the law of thermodynamics, the higher the temperature of the water (I believe so), the energy of the weather will rise."

"It's missing an opportunity that doesn't bother us. What happens to those who are a little more rich than you?

"For example, if you invest in a hig h-risk stock and get richer than you, what is it! Someone will always be richer than you. This is not a tragedy.

"The percentage of intelligence engaged in buying and selling paper and promoting commercial activities is higher than in any of the past. Many of what I see reminds me of Sodom and Gomola. Jealous and imitation. It has been a bad result in the past.

"Jealousy" created two of the Ten Commandments. If you've ever created a brother, you'll know about jealousy, and you've tried to run a law firm, investment bank, or school. I've heard many times that Warren says, "It's not greed, it's jealous."

"Now, let's say you know the great thing that is overwhelmingly confident and, as a matter of course, knows the wonderful things that create about 12 % per year as far as you can see. If you miss all the opportunities to make money, many people will think.

"Someone will make money earlier, but it has nothing to do with me." There are always those who make money faster, those who run one mile faster. So, in a human sense, once you get something that works in your own life, the idea that someone else is terribly concerned about earning money faster, it seems ridiculous to me. 。 "

"The idea that someone is earning money (than me) is one of the deadly sins. Jealousy is a really stupid crime. < SPAN>? "If the temperature of the water is high (I believe), the energy of the weather will rise."

"It's missing an opportunity that doesn't bother us. What happens to those who are a little more rich than you?

"For example, if you invest in a hig h-risk stock and get richer than you, what is it! Someone will always be richer than you. This is not a tragedy.

"The percentage of intelligence engaged in buying and selling paper and promoting commercial activities is higher than in any of the past. Many of what I see reminds me of Sodom and Gomola. Jealous and imitation. It has been a bad result in the past.

"Jealousy" created two of the Ten Commandments. If you've ever created a brother, you'll know about jealousy, and you've tried to run a law firm, investment bank, or school. I've heard many times that Warren says, "It's not greed, it's jealous."

"Now, let's say you know the great thing that is overwhelmingly confident and, as a matter of course, knows the wonderful things that create about 12 % per year as far as you can see. If you miss all the opportunities to make money, many people will think.

"Someone will make money earlier, but it has nothing to do with me." There are always those who make money faster, those who run one mile faster. So, in a human sense, once you get something that works in your own life, the idea that someone else is terribly concerned about earning money faster, it seems ridiculous to me. 。 "

"The idea that someone is earning money (than me) is one of the deadly sins. Jealousy is a really stupid crime. "If the temperature of the water is high (I believe), the energy will increase."

"It's missing an opportunity that doesn't bother us. What happens to those who are a little more rich than you?

"For example, if you invest in a hig h-risk stock and get richer than you, what is it! Someone will always be richer than you. This is not a tragedy.

"The percentage of intelligence engaged in buying and selling paper and promoting commercial activities is higher than in any of the past. Many of what I see reminds me of Sodom and Gomola. Jealous and imitation. It has been a bad result in the past.

"Jealousy" created two of the Ten Commandments. If you've ever created a brother, you'll know about jealousy, and you've tried to run a law firm, investment bank, or school. I've heard many times that Warren says, "It's not greed, it's jealous."

"Now, let's say you know the great thing that is overwhelmingly confident and, as a matter of course, knows the wonderful things that create about 12 % per year as far as you can see. If you miss all the opportunities to make money, many people will think.

"Someone will make money earlier, but it has nothing to do with me." There are always those who make money faster, those who run one mile faster. So, in a human sense, once you get something that works in your own life, the idea that someone else is terribly concerned about earning money faster, it seems ridiculous to me. 。 "

"The idea that someone is earning money (than me) is one of the deadly sins. Jealousy is a really stupid crime. ?

"Personally, I am against the current estate tax with its steep increase to 55%. It hits business owners like car dealers and plumbers. I think there should be more exemptions. "For estates worth hundreds of millions of dollars, I'm fine with that rate. As for inheritance tax, I personally have no problem with it."

"I think that people with good morals end up making more money than bad people. There are people like Marc Rich who have become very successful without having good morals or any scarcity value. But in the end, Warren Buffett has done better than Marc Rich, not just in terms of fame but also in terms of money." http://www. law. harvard. edu/alumni/bulletin/2001/summer/feature_1-1. html

"I think the best way to teach ethics is by example: It's about getting people who demonstrate a good moral framework in all their daily actions. But if morality is missing and people are rewarded regardless, it falls apart. Morality is very important, but it's best taught indirectly, by example. If you just learn some rules to pass a test, it doesn't mean much. But if you see people respecting behavior in some way, especially under stress, it really has an impact. " [Wall Street ethics will always be average, or at best mediocre.] I'm not saying there aren't great, smart people on Wall Street -- there are people like the ones in this room -- but everyone I know has to fight for their job. "I think Eva has a lot of Twaddle and Bull $%#* in it. The whole game is about turning retained earnings into more profits. Eva has a nonsensical idea about the cost of capital. Of course, if a company can generate a high return on capital and maintain it over time, it will work. But the mental system as a whole is not working."

"Avoid evil, especially if it is an attractive member of the opposite sex."

"Today, it seems to be thought of as the CEO's duty to increase stock prices. This leads to all kinds of foolish behavior. We want to tell it like it is."

"... People need to ask: How do I use the hand I've been dealt? Just because you want your money back, people around you aren't going to give you an extra refund. You have to be very smart and work very hard to get a little extra refund. It's much easier to want less. There are a lot of smart people out there, and a lot of people who cheat, so it's not easy to win. (nervous laughter)"

"One of the smartest things to do is lower your investment expectations, especially for Berkshire. That's the mature, responsible thing to do. I like our model and it should work."

"I've heard that half of the students at elite schools want to go into private equity or hedge funds. They want to catch up with their Goldman classmates. This doesn't bode well for meeting those expectations."

"If you're going to be an investor, you're going to make investments where you don't have the necessary experience. But if you keep trying to improve bit by bit over time, you're going to make investments that are almost guaranteed to do well. It's all about discipline, effort and practice. It's like golf, it's all about effort."

Experts "Just because some experts are better at measuring other kinds of violence doesn't make one important factor any less powerful.

Abnormal (1 One-time) accusation:

"If it happens every year, what's so special about it?"

"The first rule is that you never really learn anything by trying to counter it with isolated events. If the facts aren't organized into a lattice, then they're not usable. Have you ever noticed how students try to just memorize and pound away at what they've memorized? That sets them up to fail in school and in life."

"An idea or an event is not more valuable just because it's more available to you. It's a good habit to brush aside your failures and keep quiet about your successes.

You don't want to be like the movie executive who showed up to his funeral only to find out he was dead. Or maybe the priest at his funeral said: "Would someone please stand up and say something nice about the deceased? And then at the end someone said: "His brother was worse.

"It's almost impossible to grow a large float at a low cost.

"I'm amazed at the growth and cost of the float. It's amazing to create a billion-dollar float at a cost less than a Treasury note."

"We have a name for our investment style: focused investing. There's been some growth in focused investing, but what's really growing is the unlimited use of advisors for asset allocation advice and analysis of other advisors.

"There is a marble steak. The idea of ​​eating something made from wheat and rinsing with carrot juice was not attractive to me."

"People have always been longing for someone to divulge the future. In a long time, the king hired a person to occupy sheep's internal organs. There is always a market for those who pretend to know the future. It is as many times as the king hires the meteor's internal organs.

"It is human nature that estimates the recent past in the future, but it is terrible that the government cannot keep up with it."

"We have the same problem as everyone else: It's very difficult to predict the future ..."

"In fact, about half of the cash that could be used was stored in currency other than the dollar. It was not a fact. It happened, but it was a very useful incident."

"If we don't like what we don't like most, we don't want a crest classy. It needs the control of the law.

"We have problems outside the United States because we have a low recognition. We were able to acquire an Iscker because it was very smart (Isker). We are as smart enough to find them. It was so smart that they found us.

"I agree with Peter Drucker. The American culture and legal system is particularly advantageous to shareholders' profits than other stakeholders. In many countries, the priority of all benefits for the general public is very low, and almost all other rights are prioritized.

"Some markets are made by Pepsi and Coc a-Cola bottlers, while others have almost destroyed the profitability of Pepsi and Coc a-Cola's franchise. This is the individual adaptation to market capitalism. I think you need to know what is happening.

"Every year, if you just mix a small number of pickles with raisins, you will probably not recognize that it will ultimately a very large pickles collection."

"The more complicated, the more the deceived and mistakes will occur. The number will be more than a company that collects and sells sand from the river. If you always seek the accurate number of a financial company, you will be in the wrong world.

"It's rare to find a business whose future isn't worse than its past." "I know a guy who had $5 million and owned his house for free. But he wanted to make a little more to help pay the bills, so he started selling stocks on top of the internet bubble. He lost everything and his house, and now he works in a restaurant. It's not smart for the country to make gambling (on the stock market) legal and very affordable." "

"Berkshire has made money historically on sure things.

"You draw your numbers in a lottery, and if someone else draws your numbers in a lottery, you play badly. You draw your numbers in a lottery, and you win big. ... People think that if they're in the lottery, it must be a good lottery. And as soon as they get it, it becomes more valid. After all, they thought it, they acted on it. And then you get a slot machine, and you get bars, bars, nuts. And it goes on and on and on. And it goes on and on and on. This is the hyper-reaction syndrome, and the people who make the machines understand human psychology very well. We have poker machines for people with high IQs. You can play blackjack on a machine, so to speak. It's great that we've used computers to destroy civilization. But either way, the coercion of the wrong game is a very powerful and important thing. Look at what's happening in our country: Look at the people who are being destroyed by it, with stocks and the help of others.

"It's obvious to me that winners have to bet very selectively. It was obvious very early in life. I don't know why it's not obvious to a lot of other people."

"I have to confess a bigger sin. I used to think GM was a bulletproof franchise. But we have a way of dealing with it. We just put it in the 'too hard' basket. If something is too hard, we move on to something that's not too hard. What's easier?"

If you have an opportunity like Berkshire, investing in gold is stupid.

"We're at the (Stanford) Foundation, which was founded by the guy (Leland Stanford) who bought Congress to get the railroad franchise. I'm not here to just lament the failure of government.

"It's amazing how people are becoming worn out. It's crazy."

"... All the geometric developments that humans desire will ultimately fail on a finite Earth if we choose a high rate of development. And the social system for humans on Earth is so fair that in the end, almost all mass deceptions will end in shame."

"The economic system works best when there is an extreme ethic of trustworthiness. And the traditional way to get that ethic, at least in the last generation of Americans, has been religion. Religion instills guilt. ... And the guilt that comes from religion has been a great driver of creating an ethos of trustworthiness, and has been very helpful to people's economic outcomes."

"I think it would be better if we had a single-payer system, with exemptions for people who want to pay more for better services. The current system is) the best in the world at the top. But the waste in the current system is terrible, and there are very perverse incentives."

"The quality of medical care provided, including in the pharmaceutical industry, has improved considerably. It's not surprising that a rich country like the United States produces 100% of its GDP. I don't think it's crazy to spend 15% on health care, and I wouldn't be too worried if it went up to 16-17%."

"The brainpower that goes into the hedge fund industry is astounding. When I was younger, the people in the investment business were mediocre at best, East trained, and didn't know much. Now it's a brain disaster. Collectively, they don't add anything to GDP. In fact, collectively, they add costs. If you take the money invested in common stocks and subtract 2% a year for investment management costs and frictional transaction costs, that's more than the dividends paid by the companies. It's more than the twin deficits. It's a classic Alice in Wonderland story. You pay X dividends and pay the same to your investment managers and advisors."

"I've never bought a business that was sold to a hedge fund. Some companies don't want to deal with private equity or hedge funds."

"When you ask hedge fund operators why $2. 20, they say "Why not just pay $3. 30? They don't care about what's fair and right for a hedge fund. It's a horrible culture.... There's going to be a massive scandal at some point."

"Here's a good life lesson: getting the right people is the most important thing.

"I think the historical record is very important. If you can be perfect at something as simple as honesty early on, you'll pave the way to success in this world. Poor Charlie.

"Bernie Ebbers and Ken Lay were caricatures, and they were spotted right away. They were almost psychopaths. But it's much harder to see the problems in a company like Royal Dutch (Shell).

"Well, in the history of the Shea candy company, they always say, 'We've never done it, and we never will.' The same with the cashiers. It would be awful if it didn't catch on. Bad behavior catches on.

"We estimate future opportunity costs. Warren assumes that there is an opportunity to put capital to work at a high rate of return, so he's not going to put it in now at less than 10%. But when interest rates go up, If we knew it would only be 1%, we would change it. Our barriers reflect our estimates of future opportunity costs. "

"It's not bad ideas that succeed, it's good ideas."

"Our ideas are so simple that people continue to look to us for mysteries, even though all we have are the most elementary ideas."

"Like Warren, I had a great passion to get rich. "Not because I wanted a Ferrari, I wanted one at all. I thought it was inevitable that we would have to send bills to other people. I don't know where I got that idea, but I had it. Keynes."

"I'm glad I got insurance, but I'm warning you, you've got to be smart with this project."

"... I'm very happy to see the smartest people coming (to the US).

"We have no intention of enforcing our immigration laws. What you see is what you're going to get."

"I'll eat his bread and sing his songs."

"In front of many a pig washer The pigs will eat more."

"If you want good behavior, don't pay them on a commission basis. Our judges don't get paid that much; they get a fixed salary and are treated very well. The judges in this case have done relatively well and with relatively few scandals."

"I think I've always been in the top 5% of my age group in terms of understanding the power of motivation, but I've always underestimated it. And after a year, I'm not surprised that I'm a little over my limit."

"The classic prescription for the uninformed investor to invest over the long term is not to use index funds. I think it works better than going to a broker. Everyone who tells you to do other things is employed by commissions and fees. As a result, index funds are becoming more popular, but individual investors don't do index funds. Institutional investors do.

"With the Locker Index... you pay a manager a lot of money and he puts 85% of his assets in parallel with the index. With that system, you're just getting ripped off."

"Brokers, as a whole, will do worse, so much better with index funds."

"But I can imagine times when long-term indexing doesn't work, like it did in Japan 13 years ago.

"One big defense when you're worried about inflation is not to have too many stupid desires in your life.

"I think democracies are prone to inflation because politicians are naturally (over)spending. They have the power to print money, and they spend money to get votes. If you look at inflation in the Roman Empire, when they had absolute rulers, there was more inflation. No matter what form of government you have, inflation will happen in the long run.

"The price of plastic at Costco has barely changed. Inflation happens here and there.

"Neither Warren nor I have a history of making a lot of money betting on interest rates. That said, every intelligent citizen of this republic doesn't think much about it. I've seen interest rates from 1% to 20%. We try to make sure that whatever the really extreme interest rates are, they're not too bad for us. When interest rates are in the middle range, like they are now, we're indifferent." "If you buy because it's cheap, you should think about selling when you get close to calculating intrinsic value. That's hard. But if you bought a great company, you can sit on the $%@. That's good."

"The motivation for buying and selling securities, not the basic concept of value for individual owners and the price of prices, rather than the momentum of prices, will not be abolished in the future.

"Both Berkshire and Wesco are trading close to the original value we think. If the stock price goes down, we try to erase it. It is not common in American companies. That is our way. "

Investment: "Investing is to find some wonderful companies and sit down."

"Investment games are becoming more and more competitive.

"Investment decisions in ordinary stocks in ordinary stocks often have a lot of factors affect each other ... The only thing that causes the biggest problem is this Lora Paruser effect when they combine a lot of them. Is happening. "

"Humans are not given the talent to always know anything, but for those who work hard on that, those who look for things that can be betting at the wrong price and sift the world. Occasionally, when the world is given, it is easy to bet.

"If it's a bit difficult (investment), everyone will be rich. For us, investment is to go out and bet on the Paris Mutuel System. In other words, we are looking for a horse that can be won with the probability of on e-third. You need enough knowledge to know. "

"The general culture of investment banks is getting worse year by year, and we have a 6 million dollar deal for diversity retailing a few years ago, strictly and intelligent. We considered the bankers and we want to sell anything. < SPAN> "The motivation for buying and selling securities with the basic concept of value for individual owners and the price of prices, rather than the momentum of prices, will not be abolished in the future.

"Both Berkshire and Wesco are trading close to the original value we think. If the stock price goes down, we try to erase it. It is not common in American companies. That is our way. "

Investment: "Investing is to find some wonderful companies and sit down."

"Investment games are becoming more and more competitive.

"Investment decisions in ordinary stocks in ordinary stocks often have a lot of factors affect each other ... The only thing that causes the biggest problem is this Lora Paruser effect when they combine a lot of them. Is happening. "

"Humans are not given the talent to always know anything, but for those who work hard on that, those who look for things that can be betting at the wrong price and sift the world. Occasionally, when the world is given, it is easy to bet.

"If it's a bit difficult (investment), everyone will be rich. For us, investment is to go out and bet on the Paris Mutuel System. In other words, we are looking for a horse that can be won with the probability of on e-third. You need enough knowledge to know. "

"The general culture of investment banks is getting worse year by year, and we have a 6 million dollar deal for diversity retailing a few years ago, strictly and intelligent. We considered the bankers and we want to sell anything. "The motivation for buying and selling securities, not the basic concept of value for individual owners and the price of prices, rather than the momentum of prices, will not be abolished in the future.

"Both Berkshire and Wesco are trading close to the original value we think. If the stock price goes down, we try to erase it. It is not common in American companies. That is our way. "

Investment: "Investing is to find some wonderful companies and sit down."

"Investment games are becoming more and more competitive.

"Investment decisions in ordinary stocks in ordinary stocks often have a lot of factors affect each other ... The only thing that causes the biggest problem is this Lora Paruser effect when they combine a lot of them. Is happening. "

"Humans are not given the talent to always know anything, but for those who work hard on that, those who look for things that can be betting at the wrong price and sift the world. Occasionally, when the world is given, it is easy to bet.

"If it's a bit difficult (investment), everyone will be rich. For us, investment is to go out and bet on the Paris Mutuel System. In other words, we are looking for a horse that can be won with the probability of on e-third. You need enough knowledge to know. "

"The general culture of investment banks is getting worse year by year, and we have a 6 million dollar deal for diversity retailing a few years ago, strictly and intelligent. We considered the bankers and we want to sell anything.

"What's interesting to me is the mindset. All these 'helpers' running around, talking about deals. We talk about welcoming partners. The offerer wants to make a deal and loosen it in the near future. For us it's the exact opposite. We want to build lasting relationships. I think in the long run our system works better than the offerer. I think there are so many people who are just giving way to each other. I don't think they're making enough money to meet their expectations, and it's pivoting, pivoting, pivoting. "

Warren talked to Guy from an investment bank and asked him how they make money, and he said, 'From the top, from the bottom, from both sides and from the middle.' "It's entirely possible to use our mental models to find good public offerings to buy. There are tons of PRs every year, and some rare records you can jump on, but the average person gets the cream. So good luck to the talented people. IPOs are too small for us, too high tech for us to understand, so I'm not sure Warren is watching." "A lot of people with high IQs are terrible investors because they have terrible temperaments. That's why we say temperament is more important than brains. You have to keep irrational emotions in check. You need patience and discipline, and the ability to accept losses and adversity without going crazy. You need the ability to not get screwed by extreme success." "A money manager with an IQ of 160 thinking he's 180 will kill you. If you're a money manager with an IQ of 130 and you think you're 125, you might get along." A hedge fund known for "long-term capital management" collapsed last fall due to overconfidence in its methods, despite the average I. M. of its directors being around 160. Smart people are not immune to the professional disasters that come from overconfidence. They often choose to run down the more difficult path, relying on the self-assurance that they have superior talent and methods. "You must be passionately interested in "why things happen." By maintaining this mindset over a long period of time, your ability to focus on reality will gradually improve. Without this mindset, you are doomed to failure, even if you have a high IQ."

"A foreign journalist once said to me after talking to me for a while: 'You don't look smart. Do you have any explanation?'

"When we were young, there weren't many smart people in the investment world. Look at the people in the trust departments of banks. Now there are a lot of smart people in private equity funds and so on. If a crisis were to happen now, there would be a lot more people with a lot of money ready to take advantage."

"It's remarkable that people have been able to make long-term gains by not trying to be stupid, rather than trying to be very smart (like Warren Buffett and myself)."

"I think one of the reasons for that is that when I left Harvard Law School, I tried to do something about this terrible ignorance.

"I live in Los Angeles, surrounded by Koreans. I consider Korean culture and what they've built to be one of the most remarkable things in the history of capitalism. I don't think it was a coincidence that Iscar discovered Korea. There's no country that's better than Korea. If you try to find 10 countries... you won't be successful. We are big fans of Korea.

"... Congress and the Securities and Exchange Commission are so crowded with lawyers, and lawyers are so involved in drafting financial disclosure documents that they are now considered fake, and every week there was a new "lawyer" joke. Here's one of them: When the butcher says, "The reputation of lawyers has fallen dramatically," the cashier replies: "How can you fall dramatically off a pancake?"

"Lawyers have escaped most criticism. Tax shelters were approved by lawyers and received huge fees for doing so. Why don't more law firms vote with their feet and take on clients who wear signs that say, "I'm cheap and I'm willing to work hard"? I notice that firms that have avoided trouble for a long time have an institutional process for weeding out bad clients. If I were running a law firm, I'd want such a system. "

"The lawyers who file class action lawsuits for titles) are not a group you want to marry into your family. "That being said, over half of the people sued by the Lerach firm are committing egregious acts. The problem is they don't care. They're equal opportunity judges."

"Accounting income was reduced because of discrepancies, but the net amount paid to lawyers because of attorney discrepancies is close to zero. Lady Justice was blind in this case. "

"The definition of hell in the legal system is endless due process and no justice. (In the corporate world) endless due diligence and no horse sense.

"There is always someone better than you. Before you can be a leader, you have to learn to be a follower."

"We want very good leaders with a lot of power. Usually, that decision is meaningless. We need to give the power to people who can use it effectively in the fight for survival."

"We are all constantly learning, revising, or destroying ideas. Being able to quickly discard your own ideas when the time is right is one of the most valuable qualities you can have. You have to be forced to look at arguments from the other side. If you can't make a better counterargument to what you believe than your critics, you don't know enough."

"The game is to keep learning, and I don't think people who don't like the process of learning are going to keep learning."

"The name of the game is to keep learning. Even if you are very well trained and have some natural talent, you have to keep learning."

"Leverage (SEE ALSO DEBT):

"Berkshire's record has been almost a laughing matter. If Berkshire had used even half the leverage of, say, Rupert Murdoch, it would be five times the size it is today."

Leverage Market

"There's a 'co-op' going on in the LBO sector with marketable stocks and buried stocks."

"Lou Vincenti (former chairman of Wesco) sits here and says: 'If I could tell you the truth, I wouldn't have to remind you of the lies.

Biologist Julian Haksley must notice the truth that "life is a fate community that comes one after another."

"I think that the idea that the liquidity of marke t-rich common stock is a major factor in capitalism is mostly dazzling. Fluid gives us a crazy weapon."

"The difference is remarkably time, inefficient, costly, and unpredictable."

"There is an excellent fidelity, there is an ol d-fashioned way of thinking about how to gain fidelity, and the whole audience seats are full of people who have coexisted with managers and shares for decades, and are often young. When you return to such a place, you will be praised for many basic ways to gain loyalty. It is an ol d-fashioned idea that it is worthy of loyalty.

"Well, some successes were predicted, and some were accidental. [In any case, we bowed, as most people were. (Laughs)."

"I think corporate directors should learn to be a better investor.

"If you understand how to become a good investor, you can be a better manager.

"We don't raise a manager, but find it. Even if a mountain like Everest is rising, it doesn't have to be a genius to understand that it is a high mountain."

"Our success has come from the unreasonable coach we have provided, and our success will continue to come from the directors, but there are only minimum supervisors. If so, we must buy it carefully from our project. You have to notice the truth.

"I think that the idea that the liquidity of marke t-rich common stock is a major factor in capitalism is mostly dazzling. Fluid gives us a crazy weapon."

"The difference is remarkably time, inefficient, costly, and unpredictable."

"There is an excellent fidelity, there is an ol d-fashioned way of thinking about how to gain fidelity, and the whole audience seats are full of people who have coexisted with managers and shares for decades, and are often young. When you return to such a place, you will be praised for many basic ways to gain loyalty. It is an ol d-fashioned idea that it is worthy of loyalty.

"Well, some successes were predicted, and some were accidental. [In any case, we bowed, as most people were. (Laughs)."

"I think corporate directors should learn to be a better investor.

"If you understand how to become a good investor, you can be a better manager.

"We don't raise a manager, but find it. Even if a mountain like Everest is rising, it doesn't have to be a genius to understand that it is a high mountain."

"Our success has come from the unreasonable coach we have provided, and our success will continue to come from the directors, but there are only minimum supervisors. If so, we must buy it carefully from our project. You have to notice the truth.

"I think that the idea that the liquidity of marke t-rich common stock is a major factor in capitalism is mostly dazzling. Fluid gives us a crazy weapon."

"The difference is remarkably time, inefficient, costly, and unpredictable."

"There is an excellent fidelity, there is an ol d-fashioned way of thinking about how to gain the fidelity, and the whole audience seats are full of people who have coexisted with managers and stocks for decades, and are often young. When you return to such a place, you will be praised for many basic ways to gain loyalty. It is an ol d-fashioned idea that it is worthy of loyalty.

"Well, some successes were predicted, and some were accidental. [In any case, we bowed, as most people were. (Laughs)."

"I think corporate directors should learn to be a better investor.

"If you understand how to become a good investor, you can be a better manager.

"We don't raise a manager, but find it. Even if a mountain like Everest is rising, it doesn't have to be a genius to understand that it is a high mountain."

"Our success has come from the unreasonable coach we have provided, and our success will continue to come from the directors, but there are only minimum supervisors. If so, you have to buy it carefully.

"Management matters.... It doesn't take a genius to see that Jack Welch was a better manager, with better insight than his peers in other companies.... Once in awhile you get a chance to be in a great business run by a great manager, and of course today is a golden day. It would be a big mistake not to put in the money while you have the chance." On average, it's better to bet on the quality of the business than on the quality of the management. In other words, if you have to choose, bet on the dynamism of the business over the excellence of the manager. But every once in a while, you find a manager who is so good that you think it would be wise to follow him in a business that seems ordinary. "Good businesses can survive a little bad management."

"All stock investors, in the aggregate, will have a return disadvantage each year equal to the total cost of the croupiers they have chosen to collectively bear. This is an inescapable fact. And it is also inevitable that exactly half of the investors will get results lower than the median result after taking on the croupiers.

"Why do you want to invest with people who think like that: 'If the second tier pays well, add a third tier.'"

"When institutional and other investors squander 3% of their assets each year on unnecessary and unproductive investment costs to manage a portfolio of dynamically growing stocks, they still feel rich despite the squander. The state is acting as an unknown appropriation without self-limitation. In fact, this process can be self-sufficient and long-lasting. Meanwhile, what appears to be spending from the income of those who have been squandered 3% is actually spending from the disguised 'wealth effect' of rising stock prices. "

Margin of Safety

"In engineering, people have a big margin of safety. But in finance, people don't care about safety. The margin of safety just keeps growing. It's supported by false accounting.

"What's the best way to get a good husband? The only best way is to deserve a good husband, because by definition, a good husband isn't crazy."

"If you want to understand science, you have to understand mathematics. In business, if you are listed, it's Klutz. The good thing about business is that you don't have to know high mathematics.

"There is always a return to the average"

"Even pure mathematics cannot remove all paradox.

Without a numerical fluence, in some of our lives in many of our lives, it's like you've put one leg into the butt contest. " "

"I need a mental model different from a company different from a company. I have three things here:" There are three things here. To erase it from my life, myself, I myself. I have to pump.

For some reason, strangely, I had extreme academic thinking from an early age. There was a big idea in other fields over the fence, but I couldn't stand it to reach out to a small idea in my field. So I searched for a really useful big idea from all directions. Nobody told me how to do that. I was just born with this circle.

"You have to know big ideas in large fields and use them systematically. Most people are trained for one model, for example, for example, and try to solve all problems in one way. It is a stupid way to deal with a hammer.

"Skillly on the interdisciplinary road, you will never be able to go back. It's like cutting off your hands."

"...... We came up with an idea of ​​finding a bad bet and charging when we were too convinced that we were right ..."

"The more lessons that you can learn about your own painful experience, the better the lessons."

"I am very interested in the theme of human mistakes and have created it as it is, but I do not think that I have created it at a statistical rate.

"Most people don't care because the incorrect errors are not appearing in financial statements. As we were, < SPAN>," If you want to understand science, you have to understand mathematics. In the business, the good thing about the business is ".

"There is always a return to the average"

"Even pure mathematics cannot remove all paradox.

Without a numerical fluence, in some of our lives in many of our lives, it's like you've put one leg into the butt contest. " "

"I need a mental model different from a company different from a company. I have three things here:" There are three things here. To erase it from my life, myself, I myself. I have to pump.

For some reason, strangely, I had extreme academic thinking from an early age. There was a big idea in other fields over the fence, but I couldn't stand it to reach out to a small idea in my field. So I searched for a really useful big idea from all directions. Nobody told me how to do that. I was just born with this circle.

"You have to know big ideas in large fields and use them systematically. Most people are trained for one model, for example, for example, and try to solve all problems in one way. It is a stupid way to deal with a hammer.

"Skillly on the interdisciplinary road, you will never be able to go back. It's like cutting off your hands."

"...... We came up with an idea of ​​finding a bad bet and charging when we were too convinced that we were right ..."

"The more lessons that you can learn about your own painful experience, the better the lessons."

"I am very interested in the theme of human mistakes and have created it as it is, but I do not think that I have created it at a statistical rate.

"Most people don't care because the incorrect errors appear in financial statements. As we were, we said," If you want to understand science, you have to understand mathematics. In business. If you are listed, you don't have to know high mathematics.

"There is always a return to the average"

"Even pure mathematics cannot remove all paradox.

Without a numerical fluence, in some of our lives in many of our lives, it's like you've put one leg into the butt contest. " "

"I need a mental model different from a company different from a company. I have three things here:" There are three things here. To erase it from my life, myself, I myself. I have to pump.

For some reason, strangely, I had extreme academic thinking from an early age. There was a big idea in other fields over the fence, but I couldn't stand it to reach out to a small idea in my field. So I searched for a really useful big idea from all directions. Nobody told me how to do that. I was just born with this circle.

"You have to know big ideas in large fields and use them systematically. Most people are trained for one model, for example, for example, and try to solve all problems in one way. It is a stupid way to deal with a hammer.

"Skillly on the interdisciplinary road, you will never be able to go back. It's like cutting off your hands."

"...... We came up with an idea of ​​finding a bad bet and charging when we were too convinced that we were right ..."

"The more lessons that you can learn about your own painful experience, the better the lessons."

"I am very interested in the theme of human mistakes and have created it as it is, but I do not think that I have created it at a statistical rate.

"Most people don't care because the incorrect errors appear in financial statements. We were so.

"The most extreme mistake in the history of Berkshire was a mistake, but we saw it, but we didn't take action. We suffered billions of losses. We have overcome the billions of losses. ) Buy a lot of things to buy at a dropper.

After trying to make a ridiculous mistake to not buy See's, we have made this mistake many times. We are clearly low in learning.

These opportunity costs are not in financial statements, but we have billions of costs.

"Davis Funds, Chris Davis) has a shame temple. He praise that they have lost a lot of money. If you are trying to improve your knowledge, you will not be able to celebrate the idiot. ?

There is no way to live a sufficient life without making many mistakes.

"Our biggest mistakes are what I didn't do, the company I didn't buy."

Kerogg and Campbells are also reducing their profits due to the increase in motorcycle power in companies such as supermarkets and Wa l-Mart. The strength of Wa l-Mart and Costco has increased dramatically. "

"How to compete with a true mania? I have to make the best moat as much as possible and always try to expand it."

There are many things that are more important than money in life. That said, some people get confused. What is your health useful? I can't buy health with money. "

"In my guess, about 5 % of GDP is spending on mone y-scale and its friction. I define it in a broad sense, such as pensions, rewards, all transactions. I don't use the numbers, but my worst is the hundreds and thousands of people who do it. This is not the wise distribution of the brain. We have overcome hundreds of losses. There is "Sucking your thumb" and buying a lot of things to buy.

After trying to make a ridiculous mistake to not buy See's, we have made this mistake many times. We are clearly low in learning.

These opportunity costs are not in financial statements, but we have billions of costs.

"Davis Funds, Chris Davis) has a shame temple. He praise that they have lost a lot of money. If you are trying to improve your knowledge, you will not be able to celebrate the idiot. ?

There is no way to live a sufficient life without making many mistakes.

"Our biggest mistakes are what I didn't do, the company I didn't buy."

Kerogg and Campbells are also reducing their profits due to the increase in motorcycle power in companies such as supermarkets and Wa l-Mart. The strength of Wa l-Mart and Costco has increased dramatically. "

"How to compete with a true mania? I have to make the best moat as much as possible and always try to expand it."