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999 Warren Buffett Quotes - Learn His Secrets of Investing During & After Crisis

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One Up On Wall Street SUMMARY Conclusion Chapter 20 – 50,000 Frenchmen Can Be Wrong

The market, like individual stocks, can move in the opposite direction of the fundamentals over the short term Be optimistic about America and investing in general Market declines are great opportunities to buy stocks in companies that you like You can never predict the market It takes years, not months to produce big results You can make serious money by compounding a series of 20-30 percent gains in Stalwarts Stock prices often move in opposite direction but the long term, the direct and sustainability of profits will prevail Buying a company just because its cheap is a losing strategy Selling an outstanding fast grower because its stock slights overpriced is a losing technique You don’t lose anything by not owning a successful stock Stock doesn’t know that you own it Don’t be attached to a winner Don’t stop monitoring the story If you don’t think you can beat the market then buy a mutual fund Keep an open mind to new ideas Read One Up On Wall Street by Peter Lynch Chapter 19 full su...
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The Essays of Warren Buffett SUMMARY Final Chapter - Epilogue

Berkshire’s performance to date has benefited from a double-dip: (1) the exceptional gains in intrinsic value that our portfolio companies have achieved; (2) the additional bonus we realized as the market appropriately “corrected” the prices of these companies, raising their valuations in relation to those of the average business. Charlie and Warren agree and will try to wait
for opportunities that are well within their own “happy zone.” They will continue to ignore political and economic forecasts, which are an expensive distraction for many investors and businessmen. A different set of major shocks is sure to occur in the next 30 years. They will neither try to predict these nor to profit from them. If they can identify businesses similar to those they have purchased in the past, external surprises will have little effect on their long-term results.

Charlie and I are the managing partners of Berkshire. But we subcontract all of the heavy lifting in this business to the managers of our subsidiaries. Charlie and I mainly attend to capital allocation and the care and feeding of our key managers. Most of these managers are happiest when they are left alone to run their businesses, and that is customarily just how we leave them. That puts them in charge of all operating decisions and of dispatching the excess cash they generate to headquarters. As for the allocation of capital, that’s an activity both Charlie and I enjoy and in which we have acquired some useful experience.

Every share of Berkshire that I own is destined to go to philanthropies, and I want society to reap the maximum good from these gifts and bequests. Over time, markets will do extraordinary, even bizarre, things. A single, big mistake could wipe out a long string of successes. We therefore need someone genetically programmed to recognize and avoid serious risks, including those never before encountered. Temperament is also important. Independent thinking, emotional stability, and a keen understanding of both human and institutional behavior is vital to long-term investment success. I’ve seen a lot of very smart people who have lacked these virtues. 

I love running Berkshire, and if enjoying life promotes longevity, Methuselah’s record is in jeopardy.

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Hey everyone, I'm Michael. I don't read books, I research them. This channel is all about best business books and I will be summarizing the books that I am researching chapter by chapter. Do Subscribe and Follow MYSWEETLUCK.

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