When Buffett talks, people listen. Here's what he had to say to the thousands who attended his annual meet this weekend.
Over the weekend, Berkshire Hathaway held its 2013 annual meeting. Its chairman, 82-year old billionaire investor Warren Buffett and vice chairman, Charlie Munger, dispensed some valuable advice.
Josh Funk of the Associated Press lists some of their views on what leads to investing success.
Buffett and Munger told shareholders that successful investors must learn all they can about the businesses they are buying and stick to industries they know, but the right temperament is also important.
Buffett: "You just have to avoid getting excited when other people are excited."
Munger: "We've always tried to stay sane when other people like to go crazy. That's a competitive advantage."
The Motley Fool reproduced two more, which are classically Buffett.
"If they try to time their purchases they will do very well for their broker and not very well for themselves."
"We're not looking at the aspects of the stock, we're looking at the aspects of the business."
Age has not diminished Buffett’s passionate intensity. He claims he is as passionate about investing and running Berkshire Hathaway as he was when he was younger and hunting for acquisitions still gives him a kick.
"You have to love something to do well at it. There's nothing more fun for me than finding something new to add to Berkshire."
CNBC reported on a conversation when a 30-year old asked what advice they would give if they could communicate with themselves when they were 50 years younger.
Munger: We're basically so old-fashioned that we're
boringly trite. We think you ought to keep plugging along, and stay rational,
and stay energetic. Just all the old virtues still work.
Buffett: But find what turns you
on.
Munger: Yeah, you have to work
where you're turned on. I don't know about Warren, but I've never succeeded to
any great extent in something I didn't like doing.
Buffett: Charlie and I both
started in the same grocery store and neither one of us are in the grocery
business.
In 2009, Buffett backed one of America’s most iconic companies. He bought $300 million in debt issued by motorcycle-maker Harley-Davidson. In a bid to get cash, the company offered bonds with a return of 15% that mature in 2014. Here’s what he had to say about it.
“We did not think Harley-Davidson was going bankrupt. Any company that gets customers to tattoo ads on their chests can’t be all that bad.”
The question concerning shareholders is who would replace Buffett at Berkshire Hathaway.
BRW quoted Buffett. “The key is preserving a culture and having a successor, a CEO that will have more brains, more energy, more passion for it than even I have… We’re solidly in agreement as to who that individual should be.”
Buffett refused to disclose who that successor would be.
Wall Street Journal touched upon the issue on whether Buffett’s son, Howard, would take over. Buffett responded to that too. "The probability of a mistake being made is one in a hundred. It's not his job to run a business. …He only has to think about whether the board and himself may need to change the CEO."
The views expressed in this article are solely of the author and do not necessarily reflect the views of Cafemutual.
The article was first published on www.fundsupermart.co.in on May 06, 2013.
