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Warren Buffett steps down as Berkshire Hathaway CEO after six decades

latimes.com

391–400 of 612 posts

Re: Warren Buffett steps down as Berkshire Hathaway CEO after six decades

#391
post #205

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…

I agree, however I don’t think the last two of your bullets are necessarily something to learn from on the surface.

The last one is key to my entire value system as a person. I have had some financial wins in life and try not to let it impact my day to day. I avoid, sometimes with great effort, flashy things (I’ve been tempted to by exotic cars as an example but have found if I just rent one for a day or two that urge goes away, it’s just a toy to me). I usually say I’m not materialistic, but I am at times, and what I strive to be is humble, modest, and invisible. I don’t want other people seeing me as flaunting wealth. It’s not who I want to be or how I want my kids to see me act.

That said, I do, like Buffet, live in a nice house. I’m not depriving myself. But it’s also very approachable by any successful employee of a company (maybe salary of a director or VP of any large company could afford it). It doesn’t represent what I could afford if I wanted to really get into the elite neighborhoods of my city. I don’t really enjoy people in those areas. They tend to always talk about money in one way or another (vacations, private schools, cars, houses, maids, nanny’s, etc). Nothing wrong with it I suppose, just not my jam and not how I want my children raised and not the people I want as my neighbors and peers. I’ve always been much more envious of those unsuspecting rich people that drive clunker cars or live in modest homes and mow their own lawns but then you find out they paid for 16 grand children to go to college or something random like that. That’s the kind of thing I’d rather be known for than the guy with the Ferrari or yacht (even if they weren’t mutually exclusive).

Re: Warren Buffett steps down as Berkshire Hathaway CEO after six decades

#392
post #11

Here is a fantastic farewell message that Seth Klarman wrote on Buffett's retirement for The Atlantic, How Buffett did it? https://web.archive.org/web/20250000000000*/https://www.thea...

Buffett's Alpha: http://docs.lhpedersen.com/BuffettsAlpha.pdf tldr; he was leveraged with good stocks

this is a very interesting read, thank you for posting

you may consider a simple example for yourself:

Portfolio $100,000.00 $60k into US Tbills, (3, 5, 10y) $40k into SP500 cash $40k into Sp500 on margin

$140k exposure For the portfolio to be wiped out, you would need to have a 50% drawdown in the sp500 which hasn't happened in 90 years, and that assumes in a crash your tbill face value wont soar due to rate cuts

Re: Warren Buffett steps down as Berkshire Hathaway CEO after six decades

#393

Earlier quoted context omitted.

I always salute at the McDonalds drive-thru.

McDonalds has healthy food options. Getting a quarter pounder, a salad, and a cup of water is reasonably healthy. It's the soda and the shakes and the fries that'll getcha.

The quarter pounder is loaded with sugar too unfortunately. The sweet bread is one of the worst things about it. The salad dressing will be too. It's not healthy and doesn't even taste good. But it's addictive.

Re: Warren Buffett steps down as Berkshire Hathaway CEO after six decades

#394
post #3

I will never undertand this people that live all their life working, when they clearly have the chance to retire much sooner. I will retire right away if I had 10 millions. Maybe 50 millions if I was younger than 40.

What would you do though? My brain needs problems to solve. Maybe I'd just grow my own food. But if I didn't like that and just bought food I'd get bored very quickly.

Re: Warren Buffett steps down as Berkshire Hathaway CEO after six decades

#395

Earlier quoted context omitted.

I agree, however I don’t think the last two of your bullets are necessarily something to learn from on the surface.

The last one is key to my entire value system as a person. I have had some financial wins in life and try not to let it impact my day to day. I avoid, sometimes with great effort, flashy things (I’ve been tempted to by exotic cars as an example but have found if I just rent one for a day or two that urge goes away, it’s just a toy to me). I usually say I’m not materialistic, but I am at times, and what I strive to be…

+1. I’ve always looked up to the hedge fund manager driving a civic and those who sneakily donate enormous amounts anonymously.

Re: Warren Buffett steps down as Berkshire Hathaway CEO after six decades

#396

Earlier quoted context omitted.

McDonalds has healthy food options. Getting a quarter pounder, a salad, and a cup of water is reasonably healthy. It's the soda and the shakes and the fries that'll getcha.

The quarter pounder is loaded with sugar too unfortunately. The sweet bread is one of the worst things about it. The salad dressing will be too. It's not healthy and doesn't even taste good. But it's addictive.

It has 10g of sugar, which isn't good but no where near a medium coke. Though not a healthy meal because of high sodium, but with some added fibers isn't very bad.

Re: Warren Buffett steps down as Berkshire Hathaway CEO after six decades

#397

Earlier quoted context omitted.

You don’t have time to do those things if you are poor and working 2-3 jobs. Properly budgeting and analyzing costs takes a lot of time, and unexpected expenses and cost of living increases destroy your budget a lot more than McDonald’s.

Most poor humans managed to store food for the winter prior to the industrial revolution avoid overeating and draining their stores. I'm sure the poor 2-3 job worker can meal prep with cheap easy meals.

They also had a lot of time to do it. In much of Europe it seems subsistence farmers worked a lot fewer hours than one might expect. Especially in the winter

Re: Warren Buffett steps down as Berkshire Hathaway CEO after six decades

#398

Earlier quoted context omitted.

The last one is key to my entire value system as a person. I have had some financial wins in life and try not to let it impact my day to day. I avoid, sometimes with great effort, flashy things (I’ve been tempted to by exotic cars as an example but have found if I just rent one for a day or two that urge goes away, it’s just a toy to me). I usually say I’m not materialistic, but I am at times, and what I strive to be…

+1. I’ve always looked up to the hedge fund manager driving a civic and those who sneakily donate enormous amounts anonymously.

Life goals!

Re: Warren Buffett steps down as Berkshire Hathaway CEO after six decades

#399
post #205

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…

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