Jump to content
Sign in to follow this  
tony

Classics Of Financial Advice -- Good And Bad

Recommended Posts

Guest TR1982

This is a fun read. The only comment I have is responding to Clements question at the end. I think it's interesting that people in the academic side often suggest that investing is just luck but yet they also suggest that guys like Buffet know something about investing. I wonder if Clements would go to a Berkshire Hathaway meeting and tell Buffet he's just been plain lucky?

Share this post


Link to post
Share on other sites

This is a fun read. The only comment I have is responding to Clements question at the end. I think it's interesting that people in the academic side often suggest that investing is just luck but yet they also suggest that guys like Buffet know something about investing. I wonder if Clements would go to a Berkshire Hathaway meeting and tell Buffet he's just been plain lucky?

 

I would say that Buffet has not been lucky, but rather has demonstrated incredible skill over the years. I would also say, however, that very, very few people can hope to match his talents.

Share this post


Link to post
Share on other sites

And the reason why few people will match Buffett's achievement is that few of us are venture capitalists. Warren Buffett is NOT an investor who made money by trading stocks, give me a break. When an investor is on the boards of companies he owns, buys companies and manages them, that is the definition of a venture capitalist.

 

Venture capitalists have incredible skills and risk taking abilities but they would be the first to admit that they were lucky, lucky to take over a company or buy out an idea from a bunch of geeks who could not manage and that had a great product that was in great demand. Yes, it takes skill, unbelievable talent but without luck, talent alone will not make people spend their money on something that they cannot use. Had Bill Gates been born ten years later, he would have missed out on the software boom that he and his company created and the standards that were put in place. He would still be a great programmer, but he would be obscure.

 

All successful people admit that they were lucky too. Yes, they worked hard, damn hard, and they would have been successful anyway, but to become a celebrity, the best in ones field takes luck too.

 

BTW, Cotton picking is hard work.

Just some thoughts,

Steve

PS The Richest Man in Babylon By George Clason has an interesting chapter on ###### and luck.

 

 

Share this post


Link to post
Share on other sites
Guest Sierra

And the reason why few people will match Buffett's achievement is that few of us are venture capitalists. Warren Buffett is NOT an investor who made money by trading stocks, give me a break. When an investor is on the boards of companies he owns, buys companies and manages them, that is the definition of a venture capitalist.

 

Venture capitalists have incredible skills and risk taking abilities but they would be the first to admit that they were lucky, lucky to take over a company or buy out an idea from a bunch of geeks who could not manage and that had a great product that was in great demand. Yes, it takes skill, unbelievable talent but without luck, talent alone will not make people spend their money on something that they cannot use. Had Bill Gates been born ten years later, he would have missed out on the software boom that he and his company created and the standards that were put in place. He would still be a great programmer, but he would be obscure.

 

All successful people admit that they were lucky too. Yes, they worked hard, damn hard, and they would have been successful anyway, but to become a celebrity, the best in ones field takes luck too.

 

BTW, Cotton picking is hard work.

Just some thoughts,

Steve

 

PS The Richest Man in Babylon By George Clason has an interesting chapter on ###### and luck.

 

 

Steve: Warren Buffett buys and has always bought established businesses that he thought were undervalued. His specialty and genius is a far cry from being a venture capitalist. He is a "value investor". He does not provide risk capital. He does not invest in startups.

 

FYI, a venture capitalist is an investor that places his capital at substantial risk of loss in an idea that may or may not succeed as a profitable business enterprise. Such "dreamers" have much difficulty in raising the needed capital from traditional banking sources and resort to "selling" their idea to the venture capitalist in return for a substantial ownership position in the brand new venture/business.

 

Peace and Hope,

Joel

Share this post


Link to post
Share on other sites
Guest Sierra

 

And the reason why few people will match Buffett's achievement is that few of us are venture capitalists. Warren Buffett is NOT an investor who made money by trading stocks, give me a break. When an investor is on the boards of companies he owns, buys companies and manages them, that is the definition of a venture capitalist.

 

Venture capitalists have incredible skills and risk taking abilities but they would be the first to admit that they were lucky, lucky to take over a company or buy out an idea from a bunch of geeks who could not manage and that had a great product that was in great demand. Yes, it takes skill, unbelievable talent but without luck, talent alone will not make people spend their money on something that they cannot use. Had Bill Gates been born ten years later, he would have missed out on the software boom that he and his company created and the standards that were put in place. He would still be a great programmer, but he would be obscure.

 

All successful people admit that they were lucky too. Yes, they worked hard, damn hard, and they would have been successful anyway, but to become a celebrity, the best in ones field takes luck too.

 

BTW, Cotton picking is hard work.

Just some thoughts,

Steve

 

PS The Richest Man in Babylon By George Clason has an interesting chapter on ###### and luck.

 

 

Steve: Warren Buffett buys and has always bought established businesses that he thought were undervalued. His specialty and genius is a far cry from being a venture capitalist. He is a "value investor". He does not provide risk capital. He does not invest in startups.

 

FYI, a venture capitalist is an investor that places his capital at substantial risk of loss in an idea that may or may not succeed as a profitable business enterprise. Such "dreamers" have much difficulty in raising the needed capital from traditional banking sources and resort to "selling" their idea to the venture capitalist in return for a substantial ownership position in the brand new venture/business.

 

Peace and Hope,

Joel

 

 

Steve: By your silence you obviously agree with me that your firm assertion that WB is a Venture Capitalist is dead wrong. Steve, why is it that you cannot acknowledge to us that you were wrong and that you stand corrected?

 

Joel

 

Share this post


Link to post
Share on other sites

I know Buffet started off as a Graham and Dodd investor, read value based.

 

Given his great wealth he may well be a VC today. I would be surprised if he did not have VC holdings either through direct investments or a fund.

Share this post


Link to post
Share on other sites
Guest Sierra

I know Buffet started off as a Graham and Dodd investor, read value based.

 

Given his great wealth he may well be a VC today. I would be surprised if he did not have VC holdings either through direct investments or a fund.

 

 

 

If he had VC holdings I think such a REVELATION would have leaked out to the public. Or did he swear Woodward and Bernstein to secrecy?

 

Joel

Share this post


Link to post
Share on other sites

Joel,

 

Are you saying that the identity all of Buffet's holdings are in the public domain? I hardly think it would be news , if Buffet had a small fraction of his net worth invested in VC.

 

However, I do agree with Joel that Buffet did not make his money through VC investments. His wealth has been accumulated in large part by investing in value stocks.

Share this post


Link to post
Share on other sites

Joel,

 

Are you saying that the identity all of Buffet's holdings are in the public domain? I hardly think it would be news , if Buffet had a small fraction of his net worth invested in VC.

 

However, I do agree with Joel that Buffet did not make his money through VC investments. His wealth has been accumulated in large part by investing in value stocks.

 

 

Buffett is on the record as saying that 100% of his wealth is invested in the stock of his company, Berkshire Hathaway. Insofar as Berkshire is a publicly listed company and that their holdings are readily available by reading their annual report, I think we can safely say that Buffett, indeed, is NOT a venture capitalist, even to the extent of a tiny percentage of his wealth.

 

And you're absolutely right that he is a classic value investor.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

×
×
  • Create New...