PMT Forum

News: Check out our IDOL PMT members! Presenting: our awesome Members of the Month! :winner:

Search Money Investments
Shortcut to PMT Forum topics!

Click LIKE, TWEET or +1 to earn PMT Badges!

Author Topic: Exploiting the Wisdom of People Who've Been There (for autodidact)  (Read 27478 times)

Offline wilch23

  • Forum Addict
  • ***
  • Awards Stocks Superstar
    • Awards
But we don't predict, we only speculate! Hehe

Offline Wills

  • Forum Idol
  • *****
  • Gender: Male
  • Awards Investments Idol Stocks Superstar PSE Stock Trader Member of the Month
    • Awards
Well, you guys speculate the numbers and VIs don't predict the numbers! LOL
“We are masters of the unsaid words, but slaves of those we let slip out.” - Winston Churchill

Offline Wills

  • Forum Idol
  • *****
  • Gender: Male
  • Awards Investments Idol Stocks Superstar PSE Stock Trader Member of the Month
    • Awards
One of the best!

BRK Annual Meeting yr. 2009


What two industries are the first you should learn when developing your circle of competence?

Look for simple businesses. If I gave you $10M to invest right now and you only had three weeks to spend it and you could only spend it in Omaha, you’d look for simple, understandable, strong businesses. You look at the Nebraska Furniture Mart (NFM). You wouldn’t look at the third best fast food chain. You might look at McDonald’s, because it is number one and will probably always been number one. They have share of mind. What about Oracle? Too hard. GM? Too hard. You can’t predict the future for these two companies. Too many variables.

Investment knowledge is cumulative, and things you learn will make you better in the future. Stick to things you understand. Mrs. B at NFM wouldn’t get paid in Berkshire stock. Why? She doesn’t know stocks, but she knows furniture down cold. How do you beat Bobby Fisher? Play him in anything except chess. Even young people have a circle of competence even if they don’t have their thoughts perfectly organized.

“We are masters of the unsaid words, but slaves of those we let slip out.” - Winston Churchill

PMT Forum



* * * * * sponsored links * * * * *

Offline Wills

  • Forum Idol
  • *****
  • Gender: Male
  • Awards Investments Idol Stocks Superstar PSE Stock Trader Member of the Month
    • Awards
Student Visit 2007



Is there a moral connection to who you invest in?

Charlie and I went to Memphis to look at a chewing tobacco company. In the end, we decided we didn’t want to own it. We would buy stock in a tobacco company, but we didn’t want to own it.

A good example is Charlie’s favorite company, Costco. They are the #3 distributor in the US of cigarettes, but you wouldn’t avoid buying it because of that. You’ll drive yourself crazy trying to keep track of these things. Our philosophy is that it’s impossible to grade marketable securities, but we’ll buy the stocks without any problems, but we just won’t be in certain businesses.

My view is that energy production should move to nuclear. It’s clean, cheap and safe. Coal emissions are bad for the environment; however it’s still a good company. It’s impossible to grade marketable securities on moral activity. Berkshire Hathaway has and will buy what trades, but will not buy companies that engage in certain behaviors. PetroChina owns 40% of the oil in the Sudan that is government owned. If they did not own it, someone else would. Also, you have to keep in mind, if PetroChina did not buy it its possible the Sudanese would own 100% of the oil rights and that’s not so good either.

I find it funny that people find time to protest PetroChina for ownership of the Sudanese oil, but with the $300 billion or so of imported goods from China, these same people don’t protest Chinese goods. They protest investment in Chinese companies though.
“We are masters of the unsaid words, but slaves of those we let slip out.” - Winston Churchill

Offline wilch23

  • Forum Addict
  • ***
  • Awards Stocks Superstar
    • Awards
I don't know whether to laugh or cry, I presume it's Buffet talking here.
« Last Edit: Oct 23, 2013, 04:21 PM by wilch23 »

Offline chinito77

  • Posting Guru
  • ***
  • Awards Stocks Superstar
    • Awards
Nice articles sir wills for posting what buffet said here. :cool2:

:yoohoo:

Ikaw na bagong idol ko  :watchuthink:

Offline Wills

  • Forum Idol
  • *****
  • Gender: Male
  • Awards Investments Idol Stocks Superstar PSE Stock Trader Member of the Month
    • Awards
^salamat na-appreciate mo ang thread na ito.

Ikaw ang Idol ko na entrepreneur dahil matapang na bata ka!
“We are masters of the unsaid words, but slaves of those we let slip out.” - Winston Churchill

Offline Wills

  • Forum Idol
  • *****
  • Gender: Male
  • Awards Investments Idol Stocks Superstar PSE Stock Trader Member of the Month
    • Awards
The question is have I bought a company when the numbers tells me not to and how much is qualitative and how much is quantitative... The best buys had been when the numbers almost tells you not to, I mean… because then you feel so strong about the product and not just the fact you're getting a used cigar butt cheap.

- Warren Buffett
“We are masters of the unsaid words, but slaves of those we let slip out.” - Winston Churchill

Offline Wills

  • Forum Idol
  • *****
  • Gender: Male
  • Awards Investments Idol Stocks Superstar PSE Stock Trader Member of the Month
    • Awards
Emory's Goizueta Business School and McCombs School of Business at UT Austin yr. 2008



Who do you think will be one of the next greatest investors and are you partial to favoring someone with a similar investment style as yours?


Buffett: We just finished looking for someone. The Board has 3 candidates to replace me as CEO and 4 candidates to replace me as investor. They are all doing fine where they are, but they would be willing to come over to Berkshire for less pay.

In 1969, I wound up my partnership and I had to help people find someone to manage their money. I recommended Bill Ruane of Sequoia Fund, Sandy Gottesman, who is currently on the board at Berkshire, and Walter Schloss, who I wrote about in “The Superinvestors of Graham and Dodds-ville”. There’s no way they could miss.

But I don’t know many of the newer investors, they’re not my contemporaries. It’s not enough to just look at track records. They aren’t predictive and there will always be a few people that do well. I know guys who can make 50% a year with $5 million, but not with $1 billion. The problem with guys that do well is they attract so much money that it neutralizes their advantage. It’s hard to identify them, and even harder to make a deal to keep them from attracting other capital. It’s like betting on a 12 year old horse that won at 3 years old. It’s also important to AVOID MANAGERS WHO USE LEVERAGE. It’s the reason that investors with 160 IQs FLAME OUT.
“We are masters of the unsaid words, but slaves of those we let slip out.” - Winston Churchill

Offline adam

  • Posting Whiz
  • **
  • Gender: Male
    • Awards
Hi sir wills,

what does it mean by this "AVOID MANAGERS WHO USE LEVERAGE"?

Offline Wills

  • Forum Idol
  • *****
  • Gender: Male
  • Awards Investments Idol Stocks Superstar PSE Stock Trader Member of the Month
    • Awards
When choosing a candidate to replace him(Buffett) as an investor in Berkshire he avoids managers who uses leverage. Why?

Buffett knows the history of stock market and witnessed disasters because of using leverage, watch mo sa youtube yung Story of Long term Capital Management, sobrang high tech, sobrang talino ng grupo na yun at pati sarili nilang pera nilagay nila dun dahil matatalino sila, may extensive experience sila at may system sila na talagang sophisticated and yet bumagsak pa rin sila.

For us the lesson there is don't use leverage, I believe in leverage if you are entrepreneur but if you are investor or managing a portfolio.... Leverage is a NO NO!

« Last Edit: Oct 24, 2013, 11:17 AM by Wills »
“We are masters of the unsaid words, but slaves of those we let slip out.” - Winston Churchill

Offline wilch23

  • Forum Addict
  • ***
  • Awards Stocks Superstar
    • Awards
Leverage means betting more than what you have, in trading, that includes puts, shorts etc

Offline chinito77

  • Posting Guru
  • ***
  • Awards Stocks Superstar
    • Awards
^salamat na-appreciate mo ang thread na ito.

Ikaw ang Idol ko na entrepreneur dahil matapang na bata ka!

Naku po sir... wala pa ako napapatunayan.. still has a lot to learn from experiences and wisdom of older people like you  :cool2:

When choosing a candidate to replace him(Buffett) as an investor in Berkshire he avoids managers who uses leverage. Why?

Buffett knows the history of stock market and witnessed disasters because of using leverage, watch mo sa youtube yung Story of Long term Capital Management, sobrang high tech, sobrang talino ng grupo na yun at pati sarili nilang pera nilagay nila dun dahil matatalino sila, may extensive experience sila at may system sila na talagang sophisticated and yet bumagsak pa rin sila.

For us the lesson there is don't use leverage, I believe in leverage if you are entrepreneur but if you are investor or managing a portfolio.... Leverage is a NO NO!



Totoo po un sa entreprenuership lng magagamit ang katalinuhan.. hehe stock market has a lot of factors to consider..  :yoohoo: kasama na dun emotion m.  :harhar:

Offline Wills

  • Forum Idol
  • *****
  • Gender: Male
  • Awards Investments Idol Stocks Superstar PSE Stock Trader Member of the Month
    • Awards
Leverage means betting more than what you have, in trading, that includes puts, shorts etc

Yan ang malaking dahilan ng 1929 Great Depression
“We are masters of the unsaid words, but slaves of those we let slip out.” - Winston Churchill

Offline Wills

  • Forum Idol
  • *****
  • Gender: Male
  • Awards Investments Idol Stocks Superstar PSE Stock Trader Member of the Month
    • Awards
BRK Annual Meeting yr. 2009



Could you explain your opportunity cost decisions of the past year?

Buffett: Opportunity costs have been in the forefront of our minds during the last 18 months. It’s tougher to calibrate A, versus B, versus C in a fast-changing environment. Tougher and possibly more profitable. We got lots of calls [for potential investments]—most we ignored. We were called by Goldman Sachs on a Wednesday for $5 billion, and we [already] had a $5 billion commitment to Constellation Energy, $3 billion on Dow Chemical, $6.5 billion on the Wrigley Mars deal. We never want to get dependent on banks. It’s a good sign that we haven’t had the flurry [of phone calls] like last year. Normally, we would not have sold Johnson & Johnson if it were 10 – 15 points higher, [but we wanted to have a comfortable amount of cash on hand]. Our definition of comfortable is very comfortable.

[Comment: The real cost of any purchase isn’t the actual dollar cost. Rather, it’s the opportunity cost — the value of the investment you didn’t make, because you used your funds to buy something else.]
“We are masters of the unsaid words, but slaves of those we let slip out.” - Winston Churchill

PMT Forum

* * * * * sponsored links * * * * *

 

Related Topics

  Subject / Started by Replies Last post
6 Replies
789 Views
Last post Mar 30, 2010, 01:35 PM
by bahista_0116
0 Replies
513 Views
Last post Nov 05, 2010, 10:48 PM
by jamesparmis
30 Replies
2495 Views
Last post Feb 15, 2014, 12:42 AM
by INDO
5 Replies
884 Views
Last post Jun 13, 2011, 01:08 PM
by prodlinetrading


* Recent Topics

* PMT Shoutbox

Refresh History
  • dugie: hello po sa mga trader dyan, tanong ko lang po kung bakit di na gumagana ticker ng broker kong firstmetrosec e updated naman ung java ko?
    Yesterday at 10:50 AM
  • jpm247: http://newsinfo.inquirer.net/622080/protests-mount-vs-aquino
    Jul 22, 2014, 11:53 AM
  • Wills: Link is not working
    Jul 22, 2014, 09:06 AM
  • superxfactor: sir Wills, ano po possible effect nito sa market price nya?link--https://ph6.colfinancial.com/ape/FINAL2_STARTER/xml/CompanyNews_nw.asp?varStock=sino&varNewsLink=327986
    Jul 21, 2014, 08:26 PM
  • sj.unite: george88, mukhang nakulangan ka ng comma diyan sa sentence mo. :P
    Jul 21, 2014, 08:24 AM
  • kiriyama: iba ung dating nung unang mga words "bestinpalawan yung asawa ng insan ko"  :hihi:
    Jul 20, 2014, 01:37 PM
  • george88: bestinpalawan yung asawa ng insan ko taga palawan y o y
    Jul 17, 2014, 08:23 PM
  • bestinpalawan: sino taga palawan dito???  ^_^
    Jul 16, 2014, 01:16 PM
  • Beannie: Ms. Kithe! :) sorry now lang naka ol uli.. I sent you mail. thanks for being so accomodating.  :hello:
    Jul 16, 2014, 12:50 PM
  • jmces: ingat kayo mga kapatid sa pinas
    Jul 16, 2014, 09:29 AM
  • yllor: Wednesday: no trading :harhar:
    Jul 16, 2014, 04:52 AM
  • Wills: Ang sarap sa zensho!!!!!
    Jul 15, 2014, 05:03 PM
  • kithe: Hi Beannie,
    Jul 15, 2014, 02:14 PM
  • ManilaBoy40: Tropical Cyclone Storm Warning Signal # 2 Now Hoisted Over the NCR Areas ...
    Jul 15, 2014, 02:05 PM
  • moto461: Germany beats Argentina 1-0 in World Cup final :winner:
    Jul 14, 2014, 05:40 AM
  • OMG.27: Israel already entered war in Gaza.. Muslim people are already insane for the bombardments in the Middle East. They didnt notice what is happening in Syria nowadays.
    Jul 13, 2014, 07:31 PM
  • Wills: http://m.youtube.com/watch?v=UnNsCmJuwro <------ Amazing!
    Jul 12, 2014, 11:15 AM
  • yoj77: thanks will.. sana sumagot na ung knausap ko... pray pray pray...
    Jul 12, 2014, 06:49 AM
  • yoj77: i'm totally stranger here. my family cud possibly help me nxt year pa. ayaw kong mtambkan ng utang. dpat my pumapasok na daily income, to cover for xpenses, and d the same time, cover paying depts.
    Jul 12, 2014, 06:46 AM
  • yoj77: salamat wills. pero kailangan ko lang laksan ang loob ko. ung interest na dnagdag ko, not too much, not too short. pnag icpan at pagaralan ko, but the question i guess, is there someone to trustme? cguro totally WALA.
    Jul 12, 2014, 06:40 AM
  • Wills: kaya sana pagisipan mong mabuti ang mga bagay na iyan... para hindi ka magkaproblema balang araw.
    Jul 11, 2014, 10:50 PM
  • Wills: sa ganyang stage ng buhay natin ay maraming problema na pwedeng sumurpresa saiyo.... maganda ang iyong hangarin at ang gusto mo lang naman ay magprovide sa pamilya mo
    Jul 11, 2014, 10:49 PM
  • Wills: Hi yoj77, ingat ka lang dahil masyadong malaki ang interest na hahabulin mo. If anything goes bad how would you handle disappointments? may anak ka pa naman and since you said "2kids" I assume they are young and you're young also
    Jul 11, 2014, 10:47 PM
  • yoj77: 200/15mos pra may returns monthlu... naisip ko lang po, kc makaahon man lang.. may 3schools kx sa subd namin, at ung iva nagpaparint narin saken... kulang na kulang ako to survive
    Jul 11, 2014, 10:12 PM
  • yoj77: sis here po. i'm a mom of 2kids... 9mos resogned, wla na mhanap yaya... kya balik ko nlang viz ko dati, need ko lng dagdagan ng rental
    Jul 11, 2014, 10:05 PM
  • yoj77: magcomputer cafe ako dito sa haus, para mas kumita, wla ng renta
    Jul 11, 2014, 09:55 PM
  • yoj77: compute ko lang po un
    Jul 11, 2014, 09:52 PM
  • yoj77: hindi ako qualified sa bank, kc unemploed na. homebased na ako working. printing services..
    Jul 11, 2014, 09:47 PM
  • VeneurlArgent: parang dr*gs yung business niya ang bilis ng return.  :D
    Jul 11, 2014, 07:13 PM
  • jmces: utang ka sa bangko kung kaya mo gawin 200k ang 150k kayang kaya m bayaran ang interest D
    Jul 11, 2014, 05:22 PM
  • VeneurlArgent: sir yoj77 magkano po return kung sakali invest ko sa inyo 1M ko? =)
    Jul 11, 2014, 05:11 PM
  • katkatmachine: wow! 50k agad ang return kay yoj77 in just a matter of 15 months! guys! mag-invest na tayo sa kanya! surebol returns oh! :D
    Jul 11, 2014, 04:59 PM
  • yoj77: hellppppp... :D magbusiness po ako.. kasi super kulang na kulang income...
    Jul 11, 2014, 02:44 PM
  • yoj77: hello guys, sino pwedeng magpainvest saken money.. wahhhh.... 150k gawin ko 200K 15mos to pay.. :D
    Jul 11, 2014, 02:42 PM
  • erica25: hi po
    Jul 11, 2014, 12:35 PM
  • spidermannn: anyone got news about LBC ? IPO or any?
    Jul 11, 2014, 04:40 AM
  • lyn.dorry: Hello
    Jul 10, 2014, 11:25 PM
  • arvy271: :hello:
    Jul 10, 2014, 10:22 PM
  • arvy271: hi po sa lahat ng tambay dito
    Jul 10, 2014, 09:59 PM
  • george88: @vicces what kind of help are you referring... Can you please enlighten
    Jul 10, 2014, 07:21 PM
  • kithe: @rds, di ka ba nagfb? join na din kayo.. ;)
    Jul 10, 2014, 03:40 PM
  • kithe: hi katkat.. :)
    Jul 10, 2014, 03:37 PM
  • rds: @kithe - eto nakikisawsaw na lang minsan sa usapan ng iba. how's TAP doing? i believe your members' doing great!
    Jul 10, 2014, 02:21 PM
  • katkatmachine: anjan ka pa po ba miss kithe?
    Jul 10, 2014, 02:01 PM
  • kithe: @rds, nawala ako ng matagal dito sa pmt, kamusta na kayo dito?
    Jul 10, 2014, 01:02 PM
  • rds: @agapanthus - that means tayo na ang bida!
    Jul 10, 2014, 12:41 PM
  • rds: anything to say kithe?
    Jul 10, 2014, 12:40 PM
  • kithe: :hello:
    Jul 10, 2014, 12:22 PM
  • bajoyjoy: GoodSteward: alisan na prospera, ff, miko, and from the one of it, vicces... :)  Ill catch you around vicces!! <<<< GS, is that true?!? wait, what happened? what?!
    Jul 10, 2014, 10:43 AM
  • agapanthus: nag-aalisan na sila, so ibig bang sabihin into, bear market na?
    Jul 10, 2014, 07:30 AM
 
 
Welcome, Guest. Please login or register.
Did you miss your activation email?

* Must-Read Topics!

* Active Posters Today

pulubing_palaboy
2 Posts
rdebelen
2 Posts
Market_Market
1 Posts
jeffie18
1 Posts
Homeboy Homeboy
1 Posts

* Vote in this Poll Now!

  • Who would you vote for as President in 2016?
  • Dot Kris Aquino
  • 6 (6%)
  • Dot Jejomar Binay
  • 6 (6%)
  • Dot Alan Peter Cayetano
  • 6 (6%)
  • Dot Chiz Escudero
  • 4 (4%)
  • Dot Ping Lacson
  • 7 (7%)
  • Dot Bongbong Marcos
  • 8 (8%)
  • Dot Grace Poe
  • 13 (13%)
  • Dot Bong Revilla
  • 0 (0%)
  • Dot Mar Roxas
  • 6 (6%)
  • Dot Miriam Santiago
  • 35 (36%)
  • Dot Others
  • 5 (5%)
  • Total Members Voted: 96
  • View Topic

* PinoyMoneyTalk.com

* SPAM-free PMT!

Help clean up the PMT Forum by reporting spam posts, troll messages, PM solicitation, or any other problem posts or members! Click the "Report to moderator" link at the bottom of every post.
BloQcs design by Bloc
SMF 2.0.4 | SMF © 2013, Simple Machines
SMFAds for Free Forums
SimplePortal 2.3.5 © 2008-2012, SimplePortal