2024-01-08

Warren Buffet speech

In this post, I will summarize the main points of Warren Buffett's speech at the Nebraska Educational Forum in 1999.

https://www.youtube.com/watch?v=HM9h9t1vpIE

He starts by posing the question: How much would someone need to give you to acquire 10% of your future income? Let's hypothetically say $200,000. By conjuring up this number right now, you are probably already worth $2 million and just need to materialize this. According to Warren Buffett, there are only two things that can hold you back.

  • A lack of education
  • A lack of good habits

    • Berkshire looks at three points when hiring, but all of them together. Because only having the last two will kill you.

  • Integrety
  • Intelligence
  • Energy

    • One thing he recommends is taking people you admire or disdain and then writing down why you feel that way towards them to form new habits. This needs to be done early in life to still work. He also emphasizes the importance of not using credit cards because paying 20% on your money will slow you down tremendously. Being on the other side of the equation would help you tremendously. Warren only gets two types of letters: from people who had bad luck and got really sick, and from people who had too much debt. And that's solvable. 'It's way easier to get into trouble than to get out of it.

    1

    Now he answers questions and i will on highlight the most interesting

    “How can people in jobs that generally dont pay that much keep up with the rest financially”

  • Do want you love not what pays much
  • I have never heard of anyone regretting doing what he loved instead of doing what payed
  • You might underestimate how much you can actually earn in your job
  • You can still do reasonably good doing what you love insteasd of soley what pays
  • Trading money for what you love would be a big mistake

    • “How do you decide which business to invest in”

  • Have a moat “I know that snickers will still be around in 10-15 years. People dont fool around with snickers but they do with clothes or so”
  • Honest people that are running the buisness
  • Have discipline and be selective (only a few swings a lifetime)
  • One page should be filled to invest into a stock (reason)

    • Thanks,

    Finn