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.
An investing company just sent me a very long email filled with hundreds of words and a dozen or more shiny pictures to show how successful they are. Not once did they mention what their return on investment (ROI) was for their investors — which is the only thing that matters.
As an investor, the only thing that matters to you is ROI after taxes; keep your eye on that ball, not the shiny pictures or fancy words.
I just learned that Warren Buffett’s shareholder letters can be found here in PDF format.
Motley Fool has an excellent collection of Jeff Bezos quotes going back to the 1990s.
I just ran across this chart from Morningstar that includes eight stocks with share repurchase programs. In general, I’m a fan of buying the stocks of companies that have share repurchase programs, but, you also have to look into the details of how and why they’re doing this, and you also have to understand the business behind each company. For instance, I’ve never heard of LB, so I looked them up, and I have no interest in investing in an apparel company, so immediately I scratch them off.
Other companies like CAH, MCK, and CVS (who suspended their share repurchase program to buy Aetna) are currently beaten down because of the threat that Amazon will enter their business space, so my first thought is that they’re buying back their stock because it’s at a significant discount. But again, you also have to look into their financials to see how they’re buying back their stock — is it from cash flow? Or are they borrowing money to buy their stock, and if so, how long will it take to pay off those loans?
“You are neither right nor wrong because the crowd disagrees with you. You are right because the data and reasoning are right.”
“Warren Buffett has become one hell of a lot better investor since the day I met him, and so have I. If we had been frozen at any given stage with the knowledge we had, the record would have been much worse than it is today. So the game is to keep learning, and I don’t think people are going to keep learning who don’t like the learning process. You need to like the learning process.”
This is another quote by Charlie Munger. It reminds me both of working on good programming teams, but also of learning from people that I haven’t enjoyed working with, but learned things from.
“Curiosity can provide both fun and wisdom, and occasionally trouble.”
“I was born innately curious. If that doesn’t work for you, figure out your own damn system.”
(On a personal note, I would argue that many people are born curious, and his parents didn’t beat the curiosity out of him.)
“Develop into a lifelong self-learner through voracious reading; cultivate curiosity and strive to become a little wiser every day.”
“A few major opportunities, clearly recognizable as such, will usually come to one who continuously searches and waits, with a curious mind that loves diagnosis involving multiple variables.”
“Temperament alone won’t do it. You need a lot of curiosity for a long, long, time. You need to have a passionate interest in why things are happening. That cast of mind, kept over long periods, gradually improves your ability to focus on reality.”
“Einstein said his successful theories came from curiosity, concentration, perseverance, and self-criticism.”
~ from the book, Charlie Munger, The Complete Investor (and a few other sources)