The Tao of Warren Buffet
January 13, 2008 jolyntan
This book is borrowed by Jack, about warren buffett’s words of wisom.
The book is pretty simplistic. A point in each page with a touch of humor.
No.9 “Wall Street is the only place that people ride to in a Rollsroyce to get advice from those who take the subway”
- This is really interesting. If their advice is so great, why aren’t they all rich?I don’t know how true is it, i know that buffet do not look at business projections that analysts put together because the projections are way to rosy.
No 55 “There comes a time when you ought to start doing what you want. Take a job that you love. You will jump out of bed in the morning. I think you are out of your mind if you keep taking jobs that you don’t like because you think that it will look good on your resume. Isn’t that a little like saving up sex for your old age?”
-I seriously need this advice, from my past “part timing experience” i realise those jobs are really boring and not to my liking AT ALL. I will drag myself to work everyday, just to earn that few money. After my graduation, and when it comes to finding job, i will be sure that i will take on those jobs scope that is to my liking even though I’ve no “real” work experience. I’m sure this can be compensated by asking around my friends and mentor. :>
No. 80 “Of the seven deadly sings, envy is the silliest, because if you have it, you don’t feel better. You feel worse. I’ve had some good times with gluttony.. we won’t get into lust.”
- “Greed is a wonderful thing if it is thy servant and not thy master. ” It is a new perspective to me, as i always think greed as absolute bad. Understand the fact that the happiest rich people are those who love the business life that goes with making money and haven’t the least interest in other people’s wealth. Indeed a wake up call for me as often i desire to be rich because i compared a bit too much with my friends or even strangers living in big houses.
No 101. “In the business world, the rearview mirror is always clearer than the windshield”
- The point warren trying to say here is to invest in business with products that he can determine the long-term economic value. He is interested in only products that allow him to see the road ahead. He stayed away from technology stocks (IT/tech, something i major in, I’m a computing student, i feeling a tad bit upset now) , even bill gates, like him has no idea what the road ahead looks like.
No.102 ” I’m very suspect of the person who is very good at one business – it also could be a good athelete or a good entertainer……”
- The lesson warren taught is to stick with what you know and you will never look stupid, and you may even end up superrich, even if you can’t read and write. In this case he uses Mrs. B. as an example, she was really good in selling furniture and earning profits but she can’t read or write. Boy, I’m sure I’ve looked stupid right now, for writing this review, knowing little bout investing. But hey, I’m just started to learn, my first step!
No. 111 “The stock market is a no-called-strike game. You don’t have to swing at everything-you can wait for your pitch. The problem when you’re a money manager is that your fans keep yelling, ‘Swing, you bum!’”
-He advises that to make big money in stock market, stay away from professional fund managers and learn to use their shortsighted stock-trading gymnastics to take advantage of their long term pricing mistakes. Okay, note taken, i will try to see if i can anything related to the above out of my finance course.
No. 121 “I’d be a bum on the street with a tin cup if the markets were efficient”
- The theory of stock markets are efficient, is applicable to short-term perspective but this perspective often creates pricing mistakes from a long term perspective. The thing to remember here is that short-term efficiency often creates long-term efficiency, which you can exploit to make yourself superrich.
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