Warren Buffett is 85---Let's talk about one thing we have each learned from him

[Guest longinvestor]

Being vaguely correct versus precisely wrong

[merkhet]

I am surprised no one mentioned value investing.

 

I did.

 

Elephant in the room: how to invest.

[netnet]

Wow, what have I not learn from Charlie and Warren, okay here are somethings

• The necessity of continuous learning
  
• Rules number one and two of investing, 1)don't lose money and 2)always remember rule #1
  
• The punch card method
  
• Concentration in your best ideas
  
• Shoot fish in a drained barrel
  
• Have and build a circle of competence
  
• When learning an industry, be fanatical, use the Phil Fisher method, plus read everything,
  

[rb]

Wow, what have I not learn from Charlie and Warren, okay here are somethings

• The necessity of continuous learning
  
• Rules number one and two of investing, 1)don't lose money and 2)always remember rule #1
  
• The punch card method
  
• Concentration in your best ideas
  
• Shoot fish in a drained barrel
  
• Have and build a circle of competence
  
• When learning an industry, be fanatical, use the Phil Fisher method, plus read everything,
  

I tried to limit myself to one thing. But your list is a pretty good summary of what the man taught us.

[Guest longinvestor]

Avoid situations that lead to dependence on the kindness of strangers.

 

Buffett has followed this from very early on, like who he took money from during the partnership days. Contrast this to the money management business, where its almost always going to those with money to afford paying the fee.

 

For me, the corollary of this lesson has worked. I don't trust strangers anymore  with my investment$. From painful experience, this has lead me to concentrate in a few hands who I don't consider as strangers. Buffett that is. I do trust that the board will do right with the transition but will have to verify.