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Buffett to step down following six-decade run atop Berkshire

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Re: Buffett to step down following six-decade run atop Berkshire

#211

Post by gen220 »

khazhoux wrote: post #152
zhivota wrote: post #143

Earlier quoted context omitted.

Buffett invested in boring industries like insurance. As unexciting as it is, businesses like that basically are the invisible infrastructure that makes society work smoothly. Don't misunderstand flashy at the only way to be important.

Which kind of investment was it though? * An investment that makes something possible that otherwise wouldn’t happen. Like the US investing in NASA * Investment that is not consequential in the big scheme except it makes people money. Did his insurance investments keep some companies alive?

I think the right way to think about Berkshire Hathaway these days is that it's a highly decentralized, minimum viable civilization. They do everything from freight locomotives, to furniture-making, shoes, petroleum, chocolates and more. Then there's a layer of financialization on top of it all (insurance, re-insurance, loan issuance, market-making etc.).

If the U.S. became a failed state tomorrow, there's a genuine chance that Berkshire businesses would keep on operating and trading with each other, on Berkshire rails. It's like a hive of cockroaches -- businesses which are individually strong, that when woven together are un-killable.

Re: Buffett to step down following six-decade run atop Berkshire

#212

Post by thunky »

derivagral wrote: post #202
khazhoux wrote: post #152

Earlier quoted context omitted.

Which kind of investment was it though? * An investment that makes something possible that otherwise wouldn’t happen. Like the US investing in NASA * Investment that is not consequential in the big scheme except it makes people money. Did his insurance investments keep some companies alive?

Generally the latter. The very short version is that he focused on cash flow, and liked (re) insurance due to success managing float and risk. From there, he'd buy/invest stable businesses and brands. Insurance wasn't his first go, he started bookie work as a kid. As for saving, he was the guy with a big pile of money in '08 (and other times). Someone you call when your business is dying or you want to retire; he get…

I like WB as much as the next guy and while he was wildly successfully at making money, he hasn't really done anything else. His main motivation has always been to make money for himself and his shareholders, so why would we expect anything else?

Some of his biggest investments are in things like candy, soda, beer. Not exactly great for society overall and not really enabling anything other than diabetes.

He was already an massively wealthy in 2008 and just having a huge pile of cash and using it to make more deals is not some great achievement to be celebrated.

Yes he made billions off of his 2011 bofa investment, so good for him and brk but what did this do for anyone else?

If BH didn't exist would it really matter? I don't think so.

Re: Buffett to step down following six-decade run atop Berkshire

#213

Post by furrydoge »

jasonpeacock wrote: post #150
riffraff wrote: post #5

He's 94 years old, it's honestly impressive he was still there. Still, end of an era.

Chocolate chips[1] were invented in 1937, when Buffet was 6yrs old, and commercialized as we know them today in 1941 when Buffet was 10. He's literally older than chocolate chips! [1] https://simple.wikipedia.org/wiki/Chocolate_chip

[flagged]

Re: Buffett to step down following six-decade run atop Berkshire

#214

Post by deeg »

Flatcircle wrote: post #188
deeg wrote: post #186

Conventional wisdom (which I believe) is that long term individual investors do not beat the market. However, from my mostly-uniformed view, Buffett did exactly that. What was his "secret"? Did he build most of his wealth outside the market?

Charlie Munger used to talk about how easy it used to be because there was so much less competition and the competition wasn't that smart. Think by the 70's once they figured out how to accurately price options with the Black-Scholes model things started to ramp up. By that point, Buffett was already a player and had the funds to make moves.

Interesting. I've never heard of that model. So what Munger is implying is that by the 80s even Buffett wasn't beating the market but was leveraging his money for gains. Thanks!

Re: Buffett to step down following six-decade run atop Berkshire

#215

Post by jxjnskkzxxhx »

8f2ab37a-ed6c wrote: post #16

I always run across great quotes from Warren Buffett, but I never spent any time actually reading any of his writings or anything written about him. What's the best place to start to absorb some of his wisdom? Anything that's applicable to startups, tech, and life in general, beyond being the CEO of a holding company?

I downloaded his letters to shareholders to an ebook reader, starting I believe in 1971 or so. Read all of it to the present, about 1500 pages (there's a lot of repetition)

What sticks out the most is what a clear thinker he is.

Re: Buffett to step down following six-decade run atop Berkshire

#216

Post by jxjnskkzxxhx »

dehrmann wrote: post #41
8f2ab37a-ed6c wrote: post #16

I always run across great quotes from Warren Buffett, but I never spent any time actually reading any of his writings or anything written about him. What's the best place to start to absorb some of his wisdom? Anything that's applicable to startups, tech, and life in general, beyond being the CEO of a holding company?

Not to diminish any of his accomplishments, but read his quotes and story as being a product of his time. He famously missed out on a lot of solid tech investments because of his background as a value investor. Value investing doesn't exist the same way it did when Berkshire started making a name for itself. Tech investing also isn't them same as 1997, 2004, or 2010.

This is extremely superficial.

Re: Buffett to step down following six-decade run atop Berkshire

#217

Post by WalterBright »

yodsanklai wrote: post #168
WalterBright wrote: post #127

Earlier quoted context omitted.

Uniquely privileged position? The only unique thing about America is free markets. Any country can become highly successful by enacting free markets. The only thing in the way is their disbelief that they work. There's a common thread across the world and history. The more free market a country is, the more it prospers.

> The only unique thing about America is free markets Is that unique to America? I'm in EU, I thought we had free markets too. > The more free market a country is, the more it prospers. Some countries, including the US, reached prosperity by protecting their markets.

> Some countries, including the US, reached prosperity by protecting their markets.

Protecting markets is done with tariffs. Are you sure you want to assert that tariffs are good for the economy?

Re: Buffett to step down following six-decade run atop Berkshire

#218

Post by [deleted] »

thi2 wrote: post #54
kinnth wrote: post #37

Earlier quoted context omitted.

Buffet reminded me a lot of Angela Merkel. They stood clearly and simply for good moral judgment, fair systems and looked at the bigger picture to carry most people forward. They also based all their decision in facts, truth and science. They learn't their trades (economics & politics) over time and weren't afraid to adapt as times changed. Their slow and steady presence did more for equality and fairness than many o…

That has to be about a different Angela Merkel, the one I know had one priority: preserving status quo.

[deleted]

Re: Buffett to step down following six-decade run atop Berkshire

#219

Post by TheAlchemist »

DontchaKnowit wrote: post #204
TheAlchemist wrote: post #162

Earlier quoted context omitted.

Never heard about it, and can't find a trace on google. If you remember, please post here.

Warren Buffett and the interpretation of financial statements by Mary Buffett

Thank you !

Ps. That's not his ex wife though, it's his son's ex wife

Re: Buffett to step down following six-decade run atop Berkshire

#220

Post by karaterobot »

tw04 wrote: post #207
heresie-dabord wrote: post #28

Earlier quoted context omitted.

> Still, end of an era. That is an enormous understatement. At 94, Buffet has witnessed history and has represented a vision of betterment, a just society, and sound economic stewardship. These things were not and are not hallucinations. But for many, it seems, the lessons about co-operation, stable economic growth. the sane application of democratic principles, and the rule of law must be learned again. It's the end…

I will say that his pragmatism seemed to fall apart pretty quickly when the rubber met the road - unless I’m misinformed (which I may be). Berkshire was a key player in the rail workers strike of 2022 and Warren didn’t seem to want to give an inch to the working man when given the opportunity to do so. https://en.m.wikipedia.org/wiki/2022_United_States_railroad_...

I'm not clear how this represents him not being pragmatic, could you say more?
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