Thanks very very much for posting this… there is a 3rd appearance on Adam Smith’s Moneyworld that came out in 1990 I believe. If anyone has this … would love to see it.
I am very grateful to Warren Buffett as I not only learnt investing philosophy from him but also very valuable life lessons. I totally agree with him that the markets are not efficient so long as people behave irrationally due to fear and greed. Warren and I will benefit from this irrationality.
This video appears to be circa May or June 1988. BRKA trading at $3,900. From 1987 annual letter (released in spring of 1988): "As they say in poker, 'If you've been in the game 30 minutes and you don't know who the patsy is, you're the patsy.'"
18:55 I just find this curious as this video was from the late 80’s. Both Microsoft and Apple which are currently the worlds 2 largest companies with over a 2 trillion market cap had just IPO’d earlier that decade. If he had put 100,000 into each of them at that time that’d be worth 130,000,000 today for a 65,000% return on investment, over 8 times the return from his investment in Coca Cola he made at this time. Granted no one knows 35 years later the companies sitting right in front of you today that will change the world forever, just interesting to think about.
I think you've made your own point--since we didn't know then and we still don't know, Buffett has had a probabilistic advantage by sticking to businesses with slower moving economics
Yeah I mean if he’d known he’d be rich, but he didn’t know and I don’t know if anyone really knew back then. In the stock market today there are probably tens of companies that grow and give really big gains to investors but no one really knows which ones
25:42 - the best thing those analysts taunting Buffett to keep his results consistently should´ve done that day, is close their funds and invest 100% of their money with him. Their money and their client´s money.
Given they state at the time Berkshire Hathaway was trading for 3,900 a share and it’s never split you can trace this right back to the summer of 1988, Buffett would have been 58 years old.
- Buffett believes in the importance of understanding a business before investing (6:59) - He warns against the potential dangers of stock index futures and the importance of being prepared for market volatility (13:00)
