The Tao of Warren Buffett

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    17-Aug-2014

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Learn more & buy a copy! http://bit.ly/TaoBuffett A collection of pithy and inspiring sayings from America's favorite businessman that reveal his secrets of success. Like the sayings of the ancient Chinese philospher Lao-tzu, Warren Buffett's worldly wisdom is deceptively simple and enormously powerful in application. In The Tao of Warren Buffett, Mary Buffett -- author of three books on Warren Buffett's investment methods -- joins noted Buffettologist and international lecturer David Clark to bring you Warren Buffett's smartest, funniest, and most memorable sayings with an eye toward revealing the life philosophy and the investment strategies that have made Warren Buffett, and the shareholders of Berkshire Hathaway, so enormously wealthy.

Transcript

  • THE TAO OF WARREN BUFFETT WARREN BUFFETTS WORDS OF WISDOM 125 QUOTATIONS AND INTERPRETATIONS TO HELP GUIDE YOU TO BILLIONAIRE WEALTH AND ENLIGHTENED BUSINESS MANAGEMENT MARY BUFFETT & DAVID CLARK SCRIBNER an imprint of Simon & Schuster
  • Here are 10 rules to launch you on the road to billionairehood.
  • No. 1 Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1. The great secret to getting rich is getting your money to compound for you, and the larger sum you start with, all the better.
  • No. 20 You should invest in a business that even a fool can run, because someday a fool will. There are businesses with great underlying economics and businesses with poor underlying economics.
  • No. 30 There is a huge dierence between the business that grows and requires lots of capital to do so and the business that grows and doesnt require capital. This is the big secret in Warrens buy-and-hold-forever strategy. If you buy and hold a business that requires lots of capital to grow, your stock is never going to grow in value.
  • No. 37 With enough inside information and a million dollars, you can go broke in a year. Face it, by the time inside information gets to you, everyone else has heard it and traded on it.
  • No. 42 If calculus or algebra were required to be a great investor. Id have to go back to delivering newspapers. According to Warren, the math skills you need to be a great investor are addition, subtraction, multiplication, division, and the ability to rapidly calculate percentages and probability.
  • No. 44 The smarter the journalists are, the better o society is. We get our information for processing investment ideas from the media, which means we are wholly dependent on journalists for accuracy and proper analysis of what is going on. Do you want dumb people keeping us informed, or do you want intelligent people doing the job?
  • No. 49 Its only when the tide goes out that you learn whos been swimming naked. Creative accounting has let more than a few of Wall Streets darlings rise to the top. But if the real money doesnt show up at some point, the enthusiasm and illusion fall away, and all that is left is an empty bank account and a bankruptcy ling.
  • No. 54 If you hit a hole in one on every hole, you wouldnt play golf for very long. A job with challenges keeps things interesting, creates high self-esteem, promotes creativity, and attracts the highestquality people.
  • No. 57 Never ask a barber if you need a haircut. Ask an adviser if there is a problem and he will nd a problemeven if there isnt one.
  • No. 79 When you combine ignorance and borrowed money, the consequences can get interesting. Ignorance will blind you from follythe borrowed money will allow you to blindly follow your ignorance till you reach the point of folly. Folly is where you lose the money, which you owe the bank.
  • Read more in The Buett & Clark Series: