/biz/ - Business & Finance

>>209238
Based Buffett. His advice has always been simple and easy to do. Invest in a good business with good management, good future prospects, and an edge over its competitors and hold for as long as the fundamentals stay in tact and the company keeps growing. The most important thing though is to invest in it when it's undervalued (although in the later years after teaming with Charlie Munger, he sometimes advocates buying a great company at fair value if it's absolutely necessary).

I love his comparison of stock prices to a crazed neighbor who just yelled out random numbers every day to you, I like how he recommends ignoring this and sticking in the long haul investment worrying more about the ROI that you get from holding

>>209264
>>209279

Congratulations you two win the /biz/ Goy of the week award!

Carry on!

>>209290

Yeah, the Jews want us stupid sheep to make reliable, sound investments so that...

uh...

>>209290
yeah can you imagine, if everyone took Buffet's advice, alot of you finance types and brokers would soon be out of business

>>209290
While I love /pol/, your assertion has no basis. Buffett is one of the nicest and most generous people that has ever lived. He was even turned away by Ben Graham initially for not being Jewish, even though I know you're not implying he's actually Jewish but "greedy".

>>209279

It's actually such a great comparison and it makes me feel way less stressed about my investments.

he also doesn't follow his own advice and made most of his initial fortune on leveraged PE deals. he makes his new fortune on deals that are not offered to retail investors (or frankly anybody) and by buying entire companies, not just random stocks.

he is great at telling people what they want to hear, charitable, and a great businessman, but most of his spoken/written advice does not jibe with what he does (eg his opinion on derivatives)

>>209351
>and made most of his initial fortune on leveraged PE deals

Incorrect, it was on following his own advice AND buying companies with lots of float which he then invested. The biggest ones being insurance companies and some stamp company that went balls up pretty much right away, but it came with a shitton of capital which he was able to invest with great returns.

>>209300
eh. you can also argue that he's generous because of tax law.

I'm by no means saying he's not a good person. but don't think that, because he's nice and generous, he's somehow not doing it for the money.

>>209366

Actually buffett doesn't follow his own advice. If he did there would be millions of buffetts around.

>>209351
that's true, but he does also have a stock portfolio that performs really well which I think qualifies him to give advice on the markets

you'll never become a billionaire by following his stock market advice, but as you pointed out, Buffet didn't become a billionaire by playing the market, and it's probably wisest not to try to, the markets should be about getting a good ROI, billionaire status should only be be attempted in entrepreneurship and buying companies outright.

>>209378

>billionaire status should only be be attempted in entrepreneurship and buying companies outright.

Honestly, id think buffett would suggest the same. It's not that his advice is bad its that following it isnt how you become a billionaire.

>>209366
>buying companies
ie PE
apply leverage and it's a leveraged PE deal
he does "run" a stock portfolio but it isn't where his wealth comes from

i agree with your assessment but when i buy shares of aflac i don't get to use their float plus some loans to buy other companies like he does, and that's why he's wealthy and his followers aren't

>>209351
>he also doesn't follow his own advice and made most of his initial fortune on leveraged PE deals.
No, he made most of his money in the Buffett Partnership days by investing in low P/E and P/B companies with high ROE and big profit margins trading at net-net value.

>he makes his new fortune on deals that are not offered to retail investors (or frankly anybody)
Not true.

>and by buying entire companies, not just random stocks.
He has to. He has too much money to invest, he can't buy small or medium cap stocks.

>>209376
>eh. you can also argue that he's generous because of tax law.
Not really. His charitable contributions and philanthropy are excellent. Saying he should give most of his money to the government so they can spend it on Shaniquas and $500 toilet seats implies that the government can spend the rich's money better than they can.

>>209378
you'll never become a billionaire by following his stock market advice,
Why not?

>but as you pointed out, Buffet didn't become a billionaire by playing the market,
Yes he did. What do you mean?

>>209300
>Buffett is one of the nicest and most generous people that has ever lived.

I don't think his granddaughter agrees. Granted she was adopted but...

>>209376

>nearing the end of his life and 2nd richest person in America
>still lives in the house in Omaha he bought for $40k decades ago
>GUYS HE'S SHILLING HIMSELF TO MAKE A COUPLE BUCKS MORE AND SAVE ON TAXES

Bravo, you revealed his plan

>>209376

he's definitely very interested in money

but I don't think his philanthropy was motivated by tax considerations, there's better ways to save on tax than donating half your money to charity, Warren' can't be that stupid as to try and save on taxes that way.

>>209439
Buffet's giving his money away, and training his children to give his money away, because he has altogether too much money to spend before he dies, and he's always been more interested in making money than spending it anyway.

Personally I think he should have spent some time teaching his kids how to make their own money, too, but they've got full time jobs with their charity work so whatever.

He's also been influenced by that faggot Bill Gates, too, into joining utterly stupid charities like supporting abortion (muh overpopulation) AND aid to Africa (muh poor niggers). Literally two of the stupidest things to donate to. Instead of, maybe paying for massive scholarships or investing in basic science R&D.

>>209565
Those abortion charities primarily abort niggers, so they`re actually not bad.

>>209376
I never understood whats so great about billionaires donating money they will never miss because they have so much and only doing most of it once they get old.

He has had his fun and is now getting incredible power over different groups and enormous praise for doing something that only affects his life in positive ways.

>>209578
The propaganda component convinces impressionable whites in the West not to have many children. It's all around not good.

he still lives in the same house he bought in 1955
he still drives some old beat up POS from the 90s

why does he live such an ascetic life?

>>209661
Because he likes making money more than spending it, simple as that. Any time he considers making a purchase, he weighs the money he'd spent against his theoretical returns he'd get from investing it.

He's also borderline Aspergers.

>>209661
Actually his wife (now deceased) begged him successfully to get a new car after it was getting embarrassing to drive around with him in it. It was an old Volkswagen Beetle that he bought used and discounted because of hail damage.

He wouldn't be at all as rich if he didn't live frugally. That's one of the things he professes is that money, successfully invested, compounds. So instead of buying even a $20,000 car, he buys a $2,000 used one. That $20,000 can compound into $100,000 in five years. Same with $200 or $2,000. Compounding is magical once you plug all the numbers in.

>>209677
yeah. people become multi billionaires by pinching pennies and buying all of their clothes from the salvation army. gotcha.

>>209565

I think Bill Gate's poin was that charities supporting Africa are doing dick all, and that's very true, they need the problems there to keep getting their donations.

Gates fund is a charity that gets results and encourages transparency so I think it might really turn out to be a good investment in ending the world's problems.

>>209680
Not really to that level, but close. Certainly more intelligent than those people who wants the hottest new cell phone this week and who gladly pays $400 for shoes while putting $5,000 rims and a $3,000 North American Sidewalk Ape stereo system.in their $3,000 car.

>>209670
>>209677
I get that, but there comes a point where that becomes ridiculous, and that's when you have $70+ billion dollars. Buying a luxury car won't even put a dent on his net worth. He makes more money in a day.

>>209680
no but pinching pennies is a sign of financial literacy and budget consciousness that goes hand in hand with getting rich.

>>209689
it's not about fighting temptation to buy nice cars etc. it's about teaching yourself not to want stuff like that.

No one lasts long against temptation, it'll eventually catch up to you. The trick is to foster a different attitude so you won't be tempted anymore.

>>209689
>but there comes a point where that becomes ridiculous
That's subjective. If he's comfortable, it's whatever he wants. It doesn't have a lot to do with money, it's just things like that don't appeal to him.

>>209682
MY point was that Africa deserves nothing but mineral exploitation. Any money thrown towards fixing it is a waste.

>>209708

you'll never be able to adequately expolit the minerals or make any kind of decent money out of Africa until you start fixing some of the basic problems over there - until then, it'll be an unstable minefield that no sane investor would want to tread.

>>209708
also I would add that you don't know that money thrown there would be a waste, because before Bill, no one has really tried, all those charities were about raising money and living comofrtably not actually helping, I know I've been there, I've seen it

I've seen all the NGOs with big headquaters in the cities, you know where none of them were? I didn't see a single one in the shanties. Gates is different, he's the first person to actually try to fix it.

>>209711
Personally I think colonialism was exactly the right system for that region. Africa simply cannot govern itself.

Of course, I'd never put money into Africa in the first place. I just think Gates and Buffet are fools to do so.

>>209725
that's cause you've never been there, government beaurocrats and high end workers there are worthless sucm, but I've seen beautiful things, I've seen a place where everyone is hustling and dreaming of getting rich. I've seen kids drop out of school and sell cigarettes on the side of the street. I've seen people building little stores out of the sides of their homes. I've seen businessmen selling phone tokens and cold drinks out of their offices. There's capitalism in Africa and it's beautiful, the people just need to be freed from the corrupt bureaucrats and politicians and public sector to really shine.

>>209738
I think the best way to do that is to cut off all foreign support of those corrupt governments and all that shit. Just let it collapse.

>>209747
that's very true anon, but we can't just cut it all off this instant without disaster,

also, but focusing on medical care, I think Gates is taking the right approach by focusing on medical care that really helps people and doesn't prop up the corrupt public sector.

Warren Buffett's letters ought to be required reading for anyone and are useful for someone seeking competent long term investing and a reminder of human flaws and fallibility. Though they are not supposed to go into the finer details.

Warren Buffett illustrates the the importance of value investing and the strategy of buying the dip and thorough research to confirm whether the market is in error to undervalue a property. However he chooses 2 successes out of his wide all encompassing portfolio. What about the times Warren Buffett's strategies failed? How long did it take him to find such good opportunities? What about the times when the evidence accumulated pointed towards a successful company and it turned out to be wrong? What did Warren Buffett learn from these experiences? There might be a little survivor bias here, I think just as important is how he cut down on errors, improved the effectiveness of his research and honed in on the successes.

>During the extraordinary financial panic that occurred late in 2008, I never gave a thought to selling my farm or New York real estate, even though a severe recession was clearly brewing. And if I had owned 100% of a solid business with good long-term prospects, it would have been foolish for me to even consider dumping it. So why would I have sold my stocks that were small participations in wonderful businesses?

I am speaking from hindsight, but this still begs the question why he didn't convert everything to cash when the Lehman Brothers failed and the US government failed to agree on how to handle the crisis in September/October 2008 then bought the dip a few months later after volatility was lower and things had hit rock bottom. I think like many others he did realize the extent of the crisis quickly enough and by the time he did he was uncertain whether the cost of moving money around was lower than the potential gains.

Maybe he will cover this in the entire letter.

>>209416
Warren Buffets Father:
Entering the investment business, Buffett also served on the Omaha board of education from 1939 to 1942. In 1942 he ran for the U.S. House of Representatives in the Nebraska district in which Omaha was located. In that election, Buffett was seen as "a Republican sacrificial lamb in Nebraska’s second district when FDR was a popular wartime leader."[3] Nevertheless, he went on to win the Republican nomination in the primary and then the subsequent general election.

He was reelected twice. In 1948 he again was the Republican nominee for another term, but was defeated for reelection; however, he was the Republican nominee for the office again in 1950 and won the office back. In 1952 Buffett decided against seeking another term and returned to his investment business in Omaha, Buffett-Falk & Co., in which he worked until shortly before his death.[4] He also served as the campaign manager for conservative Senator Robert Taft in Taft's 1952 presidential campaign.[5]

>insider trading