Wednesday, May 18, 2005

Warren Buffett and Charlie Munger

Notes From The 2005 "Woodstock of Capitalists"
Warren Buffett: The most important characteristic is that a manager needs to have a passion for his business.

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There are no secrets to investing that only some select priesthood knows. Successful investing requires a quality of temperament, not a high IQ. You need an IQ of 125, tops—anything more than that is wasted. But you do need a certain temperament, and must be able to think for yourself. Then constantly look for opportunities. You can learn every day. You can’t act every day, but you can learn every day. It’s like any game, if you enjoy playing it, you’ll do well. But start early, and follow a framework that’s been successful.

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WB: The public education system in this country is dreadful. Like virginity, a good school system is not easily restored. Next to the nuclear threat, it is our number-one problem. I don’t like the idea of a two-tiered school system, one private, one public. I don’t care about the quality of the public golf courses in Omaha, because I play on a private course. Same thing in education: if the wealthiest and most privileged families send their children to private school, they won’t care about the public schools and the public schools will suffer.

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WB: It’s tough for individuals to invest in foreign currencies. Better to invest in your own abilities. Anything you do to develop your own abilities and your business will be more productive than worrying about foreign exchange rates. If you own a good business in the U.S., you’ll do ok.

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