warren buffett

Warren Buffett: If you could invest in one classmate ...

I found this Warren Buffett quote in this Inc. Magazine article back in 2018:

“If you could invest in only one of your fellow classmates, who would you choose? If you could buy, say, 10% of the future earnings of just one classmate, who would you choose? What would you look for?”

The idea is that you won’t just necessarily look at raw IQ, you’ll look at other personality attributes, such as drive, ambition, and hopefully other attributes like honesty and integrity.

Buffett-style investing as a three-legged stool

This is a good quote about Warren Buffett-style investing:

They like to liken their process to a three-legged stool in terms of the kinds of companies they look for:

  • The first leg of that stool is the business model that produces high free cash flow
  • The second leg is shareholder-oriented management
  • And the third leg is the ability to invest that high free cash flow in areas that will produce attractive rates of return

The quote comes from this Morningstar page. That description is consistent with what you’ll find in books like The Warren Buffett Way and The New Buffettology.

The great personal fortunes in this country ...

“The great personal fortunes in this country weren’t built on a portfolio of fifty companies. They were built by someone who identified one wonderful business.”

~ Warren Buffett

Warren Buffett on Jeff Bezos, Amazon, and the cloud

“But the cloud came along. And one of the most extraordinary things I've ever seen in business is when an unrelated type company — a retailer, you can call Amazon of that type, goes into another big industry and sees the future in it, gets into it, and then they gave — and Jeff Bezos would say this, he said it on the Charlie Rose show, some time ago — he got this amazing runway. I mean, the other players — here are all these 200 IQ people, you know, in that business, and they gave him year, after year, after year. It wasn't a secret of what he was doing. And he was, in an important way, revolutionizing the industry, and the other people sat on their hands, basically.”

~ Warren Buffett talking about Amazon and “the cloud” in this Morningstar article

If you want to understand business financial statements, here’s a book recommendation

If you’re into understanding business financial statements and/or interested in investing, I’ve been reading Warren Buffett and the Interpretation of Financial Statements for the last week or so, and I can confirm that it’s a good book for non-experts like me. With just a few exceptions, all of the terms you’ll encounter on income statements, balance sheets, and cash flow statements are explained simply and easily.

Good investing quotes from Warren Buffett and Charlie Munger

“A business that can grow its intrinsic value at 12 to 15% over an extended period of time will create tremendous wealth for its shareholders over time.”

“Long-term competitive advantage in a stable industry is what we seek in a business. If that comes with rapid organic growth, great. But even without organic growth, such a business is rewarding.”

That’s just two of the many good quotes about investing on this valuewalk.com web page. (Features quotes from Warren Buffett and Charlie Munger.)

“I have known no wise people who didn’t read all the time”

“In my whole life, I have known no wise people (over a broad subject matter area) who didn’t read all the time — none, zero. You’d be amazed at how much Warren reads — and at how much I read. My children laugh at me. They think I’m a book with a couple of legs sticking out.”

~ Charlie Munger, talking about Warren Buffett and himself