Warren Buffett & Charlie Munger

Buffett: I had been oriented toward cheap securities. Charlie said that was the wrong way to look at it. I had learned it from Ben Graham, a hero of mine. [Charlie] said that the way to make really big money over time is to invest in a good business and stick to it and then maybe add more good businesses to it. That was a big, big, big change for me. I didn't make it immediately and would lapse back. But it had a huge effect on my results. He was dead right.

(and not buying in expectation that someone would buy at a higher price than you, with disregard to the valuation of the company)


http://money.cnn.com/gallery/leadership/...une/2.html

http://postcards.blogs.fortune.cnn.com/2...d=SF_F_MPM

http://investideas.net/forum/viewtopic.p...&start=120

Munger: The other big secret is that we're good at lifelong learning. Warren is better in his seventies and eighties, in many ways, than he was when he was younger. If you keep learning all the time, you have a wonderful advantage.

Munger:
I don’t have too much interest in teaching other people how to get rich.

And that isn’t because I fear the competition or anything like that --
Warren has always been very open about what he’s learned, and I share that ethos.
I wanted to get rich so I could be independent, and so I could do other things like give talks on the intersection of psychology and economics. I didn’t want to turn it into a total obsession.

Buffett: Temperament is more important than IQ. You need reasonable intelligence, but you absolutely have to have the right temperament. Otherwise, something will snap you.

I personally think this is the real reason for their success. They found a strategy suitable for their temperament.

sorry, just wanted to add that I sync with Munger's reason to get rich aka to be independent so that I can do what I wanted to do....

Be happy always ?

Are 'chialc' and 'chialc88' the same person?

Ha Ha,
I thought nobody notice!!!

Yes, we are the same person....

(not due to split personality but i have a memory constraints)


A Life not Reflected is a Life not Worth Living.

its better to pay a fair price for a good business
than a good price for a fair business

(01-11-2013, 09:13 PM)Clement Wrote: Buffett: Temperament is more important than IQ. You need reasonable intelligence, but you absolutely have to have the right temperament. Otherwise, something will snap you.

I personally think this is the real reason for their success. They found a strategy suitable for their temperament.

i can't agreed more.
i have only average to below average IQ.
When i started to invest i had not read WB's quotation about IQ & EQ(temperament).
After said that, i know a few accountants (distance relatives) who doesn't have the EQ to do investment.
So there!

'Kan Cheong' spiders confirmed not suitable for capital gains type of investment. REITs & div stocks still can coz
perceived stability gives sense of security. Until volatility hits.

I also feel that 'penny-pinching' people (5 cents coin bigger than bulllock cart wheel type) not suitable coz they likely to quantify losses
in terms on 'dollars & sense'.