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Posted: Sat, May 19 2012, 5:46 pm EDT
Post subject: Notes From Warren Buffett's Meeting With MBA Students
Notes from the Meeting Dr. George Athanassakos and Ivey MBA and HBA students had with Mr. Warren Buffett
Omaha, NB, March 30, 2012, 10:00 am - 12:00 pm
Berkshire Hathaway's Warren Buffett recently met with MBA students from the Richard Ivey School of Business and the legendary investor talked about how his investing principles have changed over time along with numerous other topics. Here are some highlights and notes:
Question: The key to your early career was essential information arbitrage. Given the changes in the world and that information now moves at the speed of light, how do you continue to have such great successes?
Buffett: People have better information now, but they still act irrationally ... Sometimes you have to work a little bit hard to get the good deals. And looking through the Korean stock manuals I've found some of these same opportunities today. But ultimately, the key to success is emotional stability. You don't need a high IQ to get rich.
Q: Explain your overall investing strategy
Buffett: Invest in equities slowly over time. And invest in yourself. Enhance your own talents and weaknesses. And look to buy companies that will go on forever, like Coca Cola. For the more serious investor, buy equities strategically, opportunistically. And go all in when you can, and when there is a good deal. I had a limit in my fund on the amount I could put in to one investment. There was a fantastic opportunity so I approached my investors and told them I wanted to increase that amount. I ended up putting 75% of the fund in that investment and it worked out well. And I'm sure I will do it again. Don't use leverage, and sit on cash if there are no good investment opportunities.
Q: What is the most important thing you have learned in life?
Buffett: Find your passion. You will know it when you see it. It is more important than money. You want to ask the question, "Where am I going to have most fun?"
http://www.marketfolly.com/2012/05/notes-from-warren-buffetts-meeting-with.html