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Posts Tagged ‘Warren Buffett’

Derivatives are dangerous.  They have dramatically increased the leverage and risks in our financial system.  They have made it almost impossible for investors to understand and analyze our largest commercial banks and investment banks.
    —     Warren Buffett
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On This Day In:
2020 Explaining And Gilding
That Way
2019 Lead To Action
2018 Listen And See
2017 The Big Illusion
2016 What Are You Thinking About?
2015 What The Framers Chose
2014 Lost Anything Lately?
A Life Of Science
2013 Serve The World
2012 Acquaintance, n.
2011 On Why His Father Was A Great Teacher
A Baker’s Dozen

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Leaving the question of price aside, the best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return.  The worst business to own is one that must, or will, do the opposite – that is, consistently employ ever-greater amounts of capital at very low rates of return.  Unfortunately, the first type of business is very hard to find:  Most high-return businesses need relatively little capital.  Shareholders of such a business usually will benefit if it pays out most of its earnings in dividends or makes significant stock repurchases.
Though the mathematical calculations required to evaluate equities are not difficult, an analyst – even one who is experienced and intelligent – can easily go wrong in estimating future “coupons.”  At Berkshire, we attempt to deal with this problem in two ways.  First, we try to stick to businesses we believe we understand.  That means they must be relatively simple and stable in character.  If a business is complex or subject to constant change, we’re not smart enough to predict future cash flows.  Incidentally, that shortcoming doesn’t bother us.  What counts for most people in investing is not how much they know, but rather how realistically they define what they don’t know.  An investor needs to do very few things right as long as he or she avoids big mistakes.
Second, and equally important, we insist on a margin of safety in our purchase price.  If we calculate the value of a common stock to be only slightly higher than its price, we’re not interested in buying.  We believe this margin-of-safety principle, so strongly emphasized by Ben Graham, to be the cornerstone of investment success.
    —     Warren Buffett
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On This Day In:
2020 In The Path
Hangin’ Out
But I Won’t Do That
Unless You Are #45
2019 Seeking Nobility
2018 My Family Calls It Hoarding
Day 30: Done & Dusted
2017 Rogers’ Rules (Hexadecimal)
2016 But, It’s Such A Simple Mistake
2015 Crawl Towards The Light
2014 Sweet Songs
2013 The Wife Of An Ordinary Man
2012 Three Words
2011 Know Anyone Like This?
2010 Apoplexy??
When Breaking Up Is Hard To Do…
Sibling Awareness

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Our prototype for occupational fervor is the Catholic tailor who used his small savings of many years to finance a pilgrimage to the Vatican.  When he returned, his parish held a special meeting to get his first-hand account of the Pope.  ‘Tell us,’ said the eager faithful, ‘just what sort of fellow is he?’  Our hero wasted no words:  ‘He’s a forty-four, medium.’
    —     Warren Buffett
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On This Day In:
2020 A Destructive Mistake
I’d Rather Live In HER World
2019 And #IncompetentTrump Is A Failure At Both
2018 To Excel At Your Craft
Day 12: Waiting
2017 Like When You Can Order Others To Fight For You
2016 Holding Fast
2015 Alms Or Balms
2014 A Day At The Beach
2013 Pillows
Steppin’
2012 Invincible Summer
2011 Being Objective
2010 First Things First…
Northwest Passages – Intro
Northwest Passages – Day One
Northwest Passages – Poetry
Northwest Passages – Evening One
Northwest Passages – Morning Two

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Economic medicine that was previously meted out by the cupful has recently been dispensed by the barrel.  These once unthinkable dosages will almost certainly bring on unwelcome after-effects.  Their precise nature is anyone’s guess, though one likely consequence is an onslaught of inflation.
    —    Warren Buffett
[Government handouts can get you through a non-market caused depression (like the one recently caused by COVID / relief payments), but without an employment plan which improves the general welfare (like a massive infrastructure bill), only the wealthy will benefit when inflation inevitably begins to roar.  Infrastructure will improve the national resource base (bridges, roads, levies, dams, drainage, parks, beaches, river-fronts, water and waste treatment, trains and airports, etc.), it will also provide medium and long-term employment to re-build our middle class.  The longer the delay in passing a major bill, the less time available for its impact to begin before the next election cycle and the greater the opportunity for the “do-nothing” Republicans to blame the lack of progress on Democrats who wanted more than they could deliver and then failed to deliver anything.  The danger is too little and too late.  With or without jobs, inflation is coming (IMHO).  The question is: who will gain from it and who will suffer for it?    —    KMAB]
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On This Day In:
2020 Know Love
2019 Spoiler Alert
2018 Tic-Toc
2017 Explaining Working Class Support For Donald
2016 Not In My Experience
2015 Effort
2014 Honest Wants
2013 Faith, n.
2012 Surprise Me
2011 Confused With Truth

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The smarter the journalists are, the better off society is.  For to a degree, people read the press to inform themselves – and the better the teacher, the better the student body.
    —    Warren Buffett
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On This Day In:
2020 Neither Alone, Nor Lonely
Giving
2019 That’s Why It’s Called Faith
2018 So We Agree, #45 Is Dumb – Too
2017 The Morality Of Spying
2016 He Doesn’t Remind Me Of Me
The First Rule
2015 Free Your Mind And Your Ass Will Follow
The Man Without Fear
2014 I Blame Robocop
2013 Future Trustees
2012 Praise Not The Day…
2011 Educated Living

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I just think that – when a country needs more income and we do, we’re only taking in 15 percent of GDP, I mean, that – that – when a country needs more income, they should get it from the people that have it.
   —    Warren Buffett
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On This Day In:
2020 Steppin’…
2019 Every Vote Counts
2018 Or A President
2017 Pleasures
2016 Why Not?
2015 Je Suis Charlie
2014 To The Nines
2013 Higher And Truer
2012 Life’s Last Question
2011 A Single Heartbeat
A Little Male Humor – WHY MEN SHOULDN’T RETIRE

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We always live in an uncertain world.  What is certain is that the United States will go forward over time.
    —    Warren Buffett
[And the whole world will get through this, too…    —    KMAB]
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On This Day In:
2019 I Asked My Family Doctor Just What I Had
2018 You Have Just Begun To Climb
2017 Equal Protection Under Law
2016 A Stubbornly Persistent Illusion
2015 Or You Don’t
2014 If You Ever Fall…
2013 Glory Days (part 2)
2012 They Follow A Pattern – If You Know What I Mean
What I Live For (Precis)
2011 Giving

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Basically, when you get to my age, you’ll really measure your success in life by how many of the people you want to have love you actually do love you.
    —    Warren Buffett
[Happy Birthday to me!    —    KMAB]
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On This Day In:
2019 Living On The Couch
Who Am I – One Interpretation
2018 A Gardening Goal: Feed The Flowers
2017 Freakishly Happy Cowboy
2016 One More, Please
2015 Infinite Adventure
2014 Unpaved
2013 Headstones
2012 Keeping Young
2011 Lessons Well Learned

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You only have to do a very few things right in your life so long as you don’t do too many things wrong.
    —   Warren Buffett
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On This Day In:
2019 Missing Failure
2018 Praise God
2017 Necessary Gaps
2016 Nor My Dogs
2015 Say What?
I’m A Dog, Too!
Beginnings
2014 Astonishing Choices
2013 Three Hard Tasks
2012 The Only Remains
2011 Personal Capability
What Price Failure?
Both Of W’s Elections
Tea (Baggers) Anyone?

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We believe that according the name ‘investors’ to institutions that trade actively is like calling someone who repeatedly engages in one-night stands a ‘romantic.’
   —    Warren Buffett
[With the Dow at very near an all-time high, a “normal” market “correction” (a 10% drop) will still leave the market above 25,000 which would still be a historic end of year high.  The only questions are when will the correction eventually happen and how far past “normal” it will go?  Okay, three: how long will it last?  Remember, this is the first Presidency to have an 800 point drop in a single day…  Of the top five daily losses in Dow history (roughly 120 years), ALL five have happened during the current Administration.  So far, we’ve recovered from each quickly…   —    KMAB]
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On This Day In:
2018 Dominoes II (Update From Last Year’s Post)
2017 Dominoes
2016 Itchin’
2015 In The Not So Distant Future
2014 Sources
2013 Three Essentials
2012 Just Looking
2011 Religious Lessons
2010 View From Under The Bus… (A mid-term report card on the Obama Administration. Long, but still worth reading for historical perspective.)

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Chains of habit are too light to be felt until they are too heavy to be broken.
   —    Warren Buffett
[And soon, hopefully, just an embarrassingly bad memory…  A genius for marketing one’s self is only useful if – ultimately – there is something in you of value.  Otherwise, with bad luck, you pitiably end up at center stage with no talent to perform.  #GrifterDon was able to make it to center stage.  Under the bright lights, he has wilted and shown us he can’t dance, sing or even perform a soliloquy.   —  KMAB]
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On This Day In:
2018 Good Sense
2017 E Pluribus Unum
2016 Lacking
2015 Chip, Chip, Chip
2014 nom de plume
2013 The Real Reason
From The Book
2012 When Young
2011 14 Ways To A Better Judgement

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Risk comes from not knowing what you’re doing.
    —    Warren Buffett
Price is what you pay.  Value is what you get.
    —    Warren Buffett
Rule No.1:  Never lose money.  Rule No.2:  Never forget rule No.1.
    —    Warren Buffett
In the business world, the rearview mirror is always clearer than the windshield.
    —    Warren Buffett
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On This Day In:
2018 Change Happens
Day 13: Ginger / Mint Relief
2017 Still Removing Bricks
2016 Namaste
2015 Still Learning
2014 Dark Processes
2013 To The Last Link
2012 Slept In Again
2011 Home Again, Naturally
2009 Thoughts after a long day of OT…

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I think that both parties should declare the debt limit as a political weapon of mass destruction which can’t be used.  I mean, it is silly to have a country that has 237 years building up its reputation and then have people threaten to tear it down because they’re not getting some other matter.
   —    Warren Buffett
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On This Day In:
2018 Satisfied
2017 In The Mind
2016 Dreaming
2015 The Best Medicine Is Also Contagious
2014 Eyes Off
2013 The More Things Change…
2012 The Delicate Moment Of Giving
2011 Ready, Shoot, Aim!!

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You know, people talk about this being an uncertain time.  You know, all time is uncertain.  I mean, it was uncertain back in – in 2007, we just didn’t know it was uncertain.  It was – uncertain on September 10th, 2001.  It was uncertain on October 18th, 1987, you just didn’t know it.
   —    Warren Buffett
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On This Day In:
2018 Satisfied
2017 In The Mind
2016 Dreaming
2015 The Best Medicine Is Also Contagious
2014 Eyes Off
2013 The More Things Change…
2012 The Delicate Moment Of Giving
2011 Ready, Shoot, Aim!!

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Time is the friend of the wonderful company, the enemy of the mediocre.
    —   Warren Buffett
[And some Administration’s are so bad / incompetent / corrupt, we don’t even have to wait for “history”.   —   KMAB]
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On This Day In:
2017 Our Confident New President
2016 Ways
2015 Be Happy, Too
2014 At Least Smile
2013 Comfortably Bound
2012 Certainty
Thinking About Fathers
2011 And In Every Level Of Media

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