Re:“Becoming Warren Buffett,” the Man, Not the Investor
by valuearb on Thursday February 02, 2017 @01:27PM
(#13553040)
First, he's rarely loaning money. The vast majority of the time he's an investor and an owner. He's taking risk of loss.
Second, he's creating value for these businesses. The owners have worked hard, they need to sell to someone, and Warren provides them a way to keep building their lives work without having Wall Street force them to change how they do things.
Without buyers for shares, there can be no sellers, and then there are no capital markets, and we are all far poorer for it.
What your daughter could learn from Warren is
1) Basic investment valuation skills, which can be applied to any investment, business, or purchase (including cars and homes) and improve her live in many ways.
2) Business management skills. Understanding what makes a good vs. a bad company, competitive barriers, motivation, etc.
3) The need to avoid bias in decision making. He spends a great deal of time managing his own mental framework to ensure emotions and outside forces don't lead him to make less rational decisions.
She can read his investor letters for free online, and learn many of these skills just by reading them.
It's ironic that she's entrepreneurial, and all you can take from the documentary is that he intended to donate all his wealth to charity after he died and it had grown to the largest size possible, and his wife convinced him no, it was better to do it while he was still alive. And that somehow makes him a bad guy.
Second, he's creating value for these businesses. The owners have worked hard, they need to sell to someone, and Warren provides them a way to keep building their lives work without having Wall Street force them to change how they do things.
Without buyers for shares, there can be no sellers, and then there are no capital markets, and we are all far poorer for it.
What your daughter could learn from Warren is
1) Basic investment valuation skills, which can be applied to any investment, business, or purchase (including cars and homes) and improve her live in many ways.
2) Business management skills. Understanding what makes a good vs. a bad company, competitive barriers, motivation, etc.
3) The need to avoid bias in decision making. He spends a great deal of time managing his own mental framework to ensure emotions and outside forces don't lead him to make less rational decisions.
She can read his investor letters for free online, and learn many of these skills just by reading them.
It's ironic that she's entrepreneurial, and all you can take from the documentary is that he intended to donate all his wealth to charity after he died and it had grown to the largest size possible, and his wife convinced him no, it was better to do it while he was still alive. And that somehow makes him a bad guy.