321–330 of 612 posts
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I agree, however I don’t think the last two of your bullets are necessarily something to learn from on the surface.
Disagree. The last one is important. You can buy a bigger and bigger house car tv stereo whatever, but it will not make you happy.
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BRK has a beta of 0.7 (meaning it's less volatile than the market) because a third of it is just cash (probably because they want to buy the blood in the next crash like they did in 2000) so I'm curious why you wouldn't just keep that part of your portfolio in cash like he does? Now me personally I think that strategy is kind of dated because the dollar has lost 39% of its value over the last twelve months because it…
Mostly because I don't trust myself to push cash into the market when there is blood on the streets. Or really ever, for that matter. Both due to thinking "everything is still overvalued" as well as decision paralysis even when/if I do feel the time is generally right. I'm generally overly conservative, so this is somewhat of a middle ground. Along the lines of the best diet is the one you can consistently stick with…
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For some people, money is not for buying things, but just for keeping score. That can make it rewarding and addictive to accumulate money, even if you don't buy anything (like a giant house) with it. The score keeping aspect makes it interesting, just like playing tennis while keeping score is more interesting than just hitting a ball back and forth across the net without counting.
Maybe he just likes building things that others find useful. When I was younger I rented furniture from a company called CORT. I happened to notice on the contract or receipt or something, that it was a Berkshire company (I didn't know that before then). If I were Warren Buffet, I would have been happy to know that someone was a satisfied customer of one of his companies. I got some decent furniture for a few months…
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> There are people who make six figures who are in debt because they overspend and food is often one of the biggest factors in that Those people aren't "poor". They aren't worried about eating or staying warm. "Poor" is when you are deciding between fixing the car you need for work and whether or not you will have electricity the last 4 days of the month. You don't fix that with "clever budgeting".
If you have a negative net worth then I consider you poor no matter how much money you make But yes obviously there are levels to it however regardless if you are buying overpriced fast food when you could be cooking at home for much cheaper that's not good for anybody especially if you don't make a lot of money... So what's your point other than trying to argue over the definition of poor? If you don't have an emerg…
Because people make political decisions about programs that support the "poor" and the definition matters.
In particular, if a program supports the "poor" and winds up handing money to someone who is making $100K, there are a lot of people who will scream about that and attempt to cut off all support for all poor people.
This was the whole the point behind the racist "welfare queens" dog whistles, for example.
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There's no Buffett's strategy. Market buys whatever Buffett's company bought. That's how he got unusual gains. Moment of fame stretched over 60 year of clipping coupons off of that initial fame. The thing that made it possible was that he was content with his performance and never tried to one up himself. He kept his fame and market interest in him simmering over six decades inatead burning out in one bright flash.
> There's no Buffett's strategy. Market buys whatever Buffett's company bought. That's how he got unusual gains. That sure does trivialize him. If that was your goal, you nailed it. I personally don’t think that’s a fair take, but I’ve no interest in trying to change your mind.
Driving 7 minutes to work and stopping at a drive-thru to pick up McDonalds breakfast every day. The man is a true American hero.
I always salute at the McDonalds drive-thru.
It's the soda and the shakes and the fries that'll getcha.
We should never idolize a person (in my opinion). Here are some things Buffet has done that I admire (notice that phrasing): - He consistently communicated with shareholders of Berkshire in a straight-forward and transparent way in his letters and annual reports. If you read these documents, I believe that you will have a solid understanding of how he built Berkshire. - He maintained a disciplined approach to investi…
> - He still lives in the same home he bought when he was 28 years old. Really makes me wonder what drives him. For many people it's the money, but with him it doesn't seem that way. But I haven't read too much about him, so if anyone has insight I'd love to hear about it.
Driving 7 minutes to work and stopping at a drive-thru to pick up McDonalds breakfast every day. The man is a true American hero.
By several accounts, Buffet has a "McGold" card - good for free food for life, at least at Omaha-area McDonalds locations. Combined that with his "frugal" and "creature of habit" reputations, that might explain is morning routine.