Warren Buffet quotes from the Janet Lowe book
- I would take one industry at the time and develop some expertise in half a dozen. I would not take the conventional wisdom now about any industries as meaning a damn thing. I will try to think it through.
If I was looking at an insurance company or a paper company, I would put myself in the frame of mind that I had just inherited the company and it was the only asset my family was ever going to own.
What would I do with it? What am I thinking about? What am I worried about? who are my competitors? Who are my customers? Go out and talk to them. Find out the strengths and weaknesses of this particular company versus other ones.
-Investing is reporting. I told him to imagine he had been assigned an in-depth article about his own paper. Hed ask a lot of questions And dig up a lot of facts. Hed know the Washington Post. And that's all there is to it.
-Warren talks about these discounted cash flows....I've never seen him do one Munger huffed.. It's true replied buffet if the value of the company doesn't just scream out at you, it's too close.
-You need a moat in business to protect you from the guy who is going to come along and offer your product for a penny cheaper.
-The definition of a great company is one that will be great for 25-30 years.
-Purchasing junk bonds, we are dealing with enterprises that are far more marginal. These businesses are usually overloaded with debt and often operating in industries characterized by low returns on capital. Additionally the quality of management is sometimes questionable. Management may even have interests that Are directly counter to does of shareholders. Therefore we expect that we will have occasional large losses in junk issues. So far however we have done reasonably well in this field.
-More than once buffet has acquired an interest in companies that face serious financial difficulties, a condition that did not alter their franchise value. "it was similar to American Express in the late 1963 when the salad oil scandal hit it. It did not put the franchise of the travelers check or the credit card. It could have ruined the balance sheet of American Express, but the answer of course was that American Express with no net worth was worth a tremendous amount of money.
And geico with no net worth was worth a tremendous amount of money, too, except it might get closed up the next day because it had no net worth ; but I was satisfied that the net worth would be there. The truth is a lot of insurance companies for the ownership of it would have put up the net worth. We would have put it up.
- I would take one industry at the time and develop some expertise in half a dozen. I would not take the conventional wisdom now about any industries as meaning a damn thing. I will try to think it through.
If I was looking at an insurance company or a paper company, I would put myself in the frame of mind that I had just inherited the company and it was the only asset my family was ever going to own.
What would I do with it? What am I thinking about? What am I worried about? who are my competitors? Who are my customers? Go out and talk to them. Find out the strengths and weaknesses of this particular company versus other ones.
-Investing is reporting. I told him to imagine he had been assigned an in-depth article about his own paper. Hed ask a lot of questions And dig up a lot of facts. Hed know the Washington Post. And that's all there is to it.
-Warren talks about these discounted cash flows....I've never seen him do one Munger huffed.. It's true replied buffet if the value of the company doesn't just scream out at you, it's too close.
-You need a moat in business to protect you from the guy who is going to come along and offer your product for a penny cheaper.
-The definition of a great company is one that will be great for 25-30 years.
-Purchasing junk bonds, we are dealing with enterprises that are far more marginal. These businesses are usually overloaded with debt and often operating in industries characterized by low returns on capital. Additionally the quality of management is sometimes questionable. Management may even have interests that Are directly counter to does of shareholders. Therefore we expect that we will have occasional large losses in junk issues. So far however we have done reasonably well in this field.
-More than once buffet has acquired an interest in companies that face serious financial difficulties, a condition that did not alter their franchise value. "it was similar to American Express in the late 1963 when the salad oil scandal hit it. It did not put the franchise of the travelers check or the credit card. It could have ruined the balance sheet of American Express, but the answer of course was that American Express with no net worth was worth a tremendous amount of money.
And geico with no net worth was worth a tremendous amount of money, too, except it might get closed up the next day because it had no net worth ; but I was satisfied that the net worth would be there. The truth is a lot of insurance companies for the ownership of it would have put up the net worth. We would have put it up.
