Warren Buffett breaks down how he would invest if he had to start again with $1 million

00:05:20
https://www.youtube.com/watch?v=v4T1oknATGU

Résumé

TLDRThe speaker discusses investment strategies, emphasizing the importance of thorough research and genuine passion for the subject. They reflect on their past experiences with Moody's manuals and the railroad industry, suggesting that to achieve a 50% annual return, one must be deeply engaged in exploring small companies and undervalued securities. The speaker highlights that success in investing requires a love for the process, akin to dedication seen in other fields like biology or chess. They encourage aspiring investors to find their passion and immerse themselves in it to succeed.

A retenir

  • 📈 Achieving high returns requires thorough research.
  • ❤️ Passion for the subject is essential for success.
  • 🔍 Explore small companies for undervalued securities.
  • 📚 Knowledge of investment manuals can uncover opportunities.
  • 💡 Opportunity cost is crucial in investment decisions.
  • 🤝 Connecting with others in the field can enhance understanding.
  • 🎯 Focus on what you love to excel in investing.
  • 🧠 Understanding your strengths can guide your investment strategy.
  • ♟️ Dedication in investing is similar to other fields like chess.
  • 💰 A small amount of money can yield significant returns with the right approach.

Chronologie

  • 00:00:00 - 00:05:20

    In response to a question about achieving a 50% annual return on investment, the speaker emphasizes the importance of thorough research, specifically referencing the value of going through extensive publications like Moody's manuals. They share personal experiences from their youth, highlighting the significance of understanding small companies and their unique characteristics. The speaker suggests that a deep passion for the subject matter is crucial for success in investing, akin to how biologists pursue their interests. They stress the need for investors to be genuinely interested in the game of investing, as this passion drives the pursuit of knowledge and ultimately leads to better investment decisions. The speaker concludes by encouraging attendees to continue exploring their interests in investing.

Carte mentale

Vidéo Q&R

  • What investment strategy does the speaker recommend for achieving high returns?

    The speaker recommends thorough research and a deep engagement with the subject matter, particularly in small companies and undervalued securities.

  • Is it necessary to love the investment process to succeed?

    Yes, the speaker emphasizes that one must be passionate about the subject to truly succeed in investing.

  • What role does research play in investment success?

    Research is crucial; the speaker mentions going through extensive manuals to find valuable investment opportunities.

  • Can a small amount of money yield high returns?

    Yes, the speaker believes that with a million dollars, it is possible to earn a 50% annual return if one is dedicated and knowledgeable.

  • What is the significance of understanding small companies?

    Understanding small companies can lead to discovering undervalued securities that may offer significant returns.

  • How does the speaker relate investment to other fields?

    The speaker compares investment to fields like biology and chess, where passion and dedication lead to success.

  • What was the speaker's experience with the railroad industry?

    The speaker had extensive knowledge of various railroad companies, which helped them connect with others in the investment community.

  • What is the importance of opportunity cost in investing?

    Opportunity cost serves as a final arbiter in deciding which investment methods to pursue.

  • What does the speaker mean by 'pounding the hell out' of a subject?

    It means to deeply focus and invest time and effort into understanding a specific area of interest.

  • What advice does the speaker give to aspiring investors?

    The speaker advises aspiring investors to find what they are passionate about and immerse themselves in that area.

Voir plus de résumés vidéo

Accédez instantanément à des résumés vidéo gratuits sur YouTube grâce à l'IA !
Sous-titres
en
Défilement automatique:
  • 00:00:00
    towards the end of 2018 you mentioned
  • 00:00:03
    that you guarantee you could make a 50%
  • 00:00:06
    annual return if you had to start again
  • 00:00:09
    with under $1 million the question is if
  • 00:00:12
    tomorrow you woke up in the body of a of
  • 00:00:16
    of P bodyy old P body but that's
  • 00:00:23
    fine and your name was now Warren
  • 00:00:27
    alakat and you had some money to Inver
  • 00:00:30
    on a full-time basis what method or
  • 00:00:32
    methods would you use to achieve that
  • 00:00:35
    return would it involve flipping through
  • 00:00:38
    20,000 pages of Moody's manual or
  • 00:00:41
    similar Publications or finding you you
  • 00:00:44
    know to find buts or would it be hunting
  • 00:00:47
    for great companies at a fair price as
  • 00:00:49
    Mr MW or would it be a combination of
  • 00:00:52
    both with opportunity cost serving as
  • 00:00:55
    the final Arbiter of which method to use
  • 00:00:57
    given that your investing opportunity
  • 00:00:59
    has now broaden significantly thank you
  • 00:01:02
    cop good question I'm glad you came and
  • 00:01:05
    the uh the answer would be in my
  • 00:01:09
    particular case it would be going
  • 00:01:12
    through the 20,000 pages and since we
  • 00:01:15
    were talking about railroads you know I
  • 00:01:18
    went through the Moody Transportation
  • 00:01:20
    manual a couple of times that was 1500
  • 00:01:22
    or 2,000 Pages or well probably 1500
  • 00:01:25
    pages and I found all kinds of
  • 00:01:27
    interesting things when I was 50 or when
  • 00:01:29
    when I
  • 00:01:30
    was uh 20 or 21 and I don't imagine
  • 00:01:36
    there's anybody here that knows about
  • 00:01:38
    the Green Bay and Western railroad
  • 00:01:41
    company but uh there were hundreds and
  • 00:01:43
    hundreds of railroad companies and I
  • 00:01:45
    like to read about every one of them the
  • 00:01:47
    green band
  • 00:01:48
    Western uh in those days everybody had a
  • 00:01:51
    nickname for for railroads I mean that
  • 00:01:54
    was that was just what Northern Pacific
  • 00:01:57
    was the Nipper and you know TB snow
  • 00:02:02
    was one of them in the East that used to
  • 00:02:04
    go up to Cornell and uh the green band
  • 00:02:07
    Western was known as grab baggage and
  • 00:02:11
    walk and
  • 00:02:13
    gbnw and they had an they had a bond
  • 00:02:18
    that was actually the common stock and
  • 00:02:20
    they had a common stock that was
  • 00:02:21
    actually a bond and you know that that
  • 00:02:26
    could lead to unusual things but they
  • 00:02:29
    wouldn't lead unusual things that would
  • 00:02:31
    work for you with many millions of
  • 00:02:33
    dollars but but if you collected a whole
  • 00:02:36
    bunch of
  • 00:02:37
    those which I set out to do and actually
  • 00:02:41
    that's what impressed Charlie when I
  • 00:02:42
    first met him because I knew all the
  • 00:02:44
    details of all these little companies on
  • 00:02:46
    the west coast that he thought I would
  • 00:02:48
    never have heard of but but I knew about
  • 00:02:50
    the Los Angeles Athletic Club or
  • 00:02:52
    whatever it might be and he thought he
  • 00:02:56
    was the only one that knew about that
  • 00:02:57
    and that that that uh
  • 00:03:00
    that became an instant point of
  • 00:03:03
    connection so to answer your question uh
  • 00:03:07
    I would I would I don't know what the
  • 00:03:10
    equivalent of Moody's manuals or
  • 00:03:11
    anything would be now but I would I
  • 00:03:14
    would try and know everything about
  • 00:03:16
    everything small and I would find
  • 00:03:19
    something and with a million dollars you
  • 00:03:23
    could earn 50% a year but you have to be
  • 00:03:25
    in love with the
  • 00:03:27
    subject uh you can't just be in love
  • 00:03:29
    with the money you really got to just
  • 00:03:31
    find it like a you know essentially like
  • 00:03:35
    you know people find other things in
  • 00:03:37
    other fields cuz they just love looking
  • 00:03:39
    for it a biologist looks for something
  • 00:03:42
    because they they they want to find
  • 00:03:45
    something they and it's built in I don't
  • 00:03:48
    know how the human brain works that much
  • 00:03:50
    and I don't think anybody understands
  • 00:03:51
    too well how the human brain works but
  • 00:03:54
    but there's different people that that
  • 00:03:57
    uh just find it exciting
  • 00:04:00
    to expand their knowledge in a given
  • 00:04:02
    area we
  • 00:04:05
    uh you know I know Great British players
  • 00:04:07
    I know great chess players actually uh
  • 00:04:11
    Kasparov came to Al met Mrs B I've had
  • 00:04:15
    the luck of of meeting a lot of people
  • 00:04:18
    that are unbelievably Smart in their own
  • 00:04:23
    Arena and do some unbelievably dumb
  • 00:04:26
    things in other areas so all I know is
  • 00:04:30
    the human brain is complicated and but
  • 00:04:33
    it does its best when you find out what
  • 00:04:37
    your brain is really suited for and then
  • 00:04:39
    you just uh pound the hell out from that
  • 00:04:42
    point and that's what I would be doing
  • 00:04:44
    if I if I had a small amount of money
  • 00:04:47
    and I wanted to make 50% a year but I
  • 00:04:50
    also wanted to just play the game and
  • 00:04:53
    you can't do it if you really if you
  • 00:04:55
    don't find the the game of Interest
  • 00:04:58
    whether it's Bridge or whether you know
  • 00:04:59
    whatever it may be chess or this case
  • 00:05:03
    finding Securities that are undervalued
  • 00:05:06
    but it sounds to me like you're on the
  • 00:05:07
    right track I mean anybody that will
  • 00:05:09
    come all the way to this annual meeting
  • 00:05:12
    has got something in their mind other
  • 00:05:13
    than Bridge or chess uh so I'm glad you
  • 00:05:17
    came and come again next year
Tags
  • investment
  • returns
  • research
  • passion
  • undervalued securities
  • Moody's manuals
  • railroad industry
  • opportunity cost
  • small companies
  • dedication