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Warren Buffett’s big life lesson to students: Don’t borrow money like Donald Trump
Tae Kim
April 13, 2018
Warren Buffett warned students not to borrow money like Donald Trump Warren Buffett warned students not to borrow money like Donald Trump
14 Hours Ago | 00:54
Warren Buffett warned students about the perils of using debt and leverage decades ago, using Donald Trump as a negative case study.
Buffett was asked by a Notre Dame student about Trump's business troubles during a question-and-answer session in 1991. Trump's Atlantic City Taj Mahal casino filed for Chapter 11 bankruptcy protection later that year.
"Where did Donald Trump go wrong? The big problem with Donald Trump was he never went right. He basically overpaid for properties, but he got people to lend him the money. He was terrific at borrowing money. If you look at his assets, and what he paid for them, and what he borrowed to get them, there was never any real equity there," Buffett said, according to a transcript published by former hedge fund manager Whitney Tilson.
More details in https://www.cnbc.com/2018/04/12/warren-b...trump.html
Specuvestor: Asset - Business - Structure.
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02-09-2019, 09:22 PM
(This post was last modified: 02-09-2019, 09:27 PM by dreamybear.)
I posted the article below here coz I thought this to be another "life lesson" aka wise words of the extraordinaries .... & decided to post this because of chialc88's Micro-Mech post#156 ( https://www.valuebuddies.com/thread-529-...#pid154195 ) on the song "I've Never Been To Me", originally sung by Charlene. It's one of my fav songs due to its nice tune and meaningful lyrics. However, it's also a very sad song about living a regretful life. There is another "male singer" version of the song with different lyrics but on the same theme. ( https://en.wikipedia.org/wiki/I%27ve_Never_Been_to_Me )
Interestingly, on the website https://www.songfacts.com/facts/charlene...been-to-me , "Beulah from Usa" shared that the song may be referencing the colourful life of Marilyn Monroe. 
So while busy making a living, we must not forget our priorities in order not to live our lives with regret !  
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Warren Buffett says this is ‘the ultimate test of how you have lived your life’—and Bill Gates agrees
Updated Sun, Sep 1 2019 9:34 AM EDT
Warren Buffett is one of the richest people in the world, but money isn’t a factor when it comes to measuring the quality of his life.
In 2017, when Buffett and Microsoft co-founder Bill Gates shared the stage for a talk at Columbia University, one student asked: “Are there any major life lessons that you two have learned about relationships through your personal experiences?”
“Well, it’s a very important question. You will move in the direction of the people that you associate with,” Buffett answered. “So it’s important to associate with people that are better than yourself.”
‘The ultimate test’
Buffett, who just turned 89 on Saturday, August 30th, 2019, has given similar advice in the past.
“Basically, when you get to my age, you’ll really measure your success in life by how many of the people you want to have love you actually do love you,” he said in 2001 during a speech at the University of Georgia.
“I know people who have a lot of money, and they get testimonial dinners and hospital wings named after them. But the truth is that nobody in the world loves them,” Buffett continued. “If you get to my age in life and nobody thinks well of you, I don’t care how big your bank account is — your life is a disaster. That’s the ultimate test of how you have lived your life.”.....
Read more : https://www.cnbc.com/2019/09/01/billiona...-life.html
"Let all that you do be done in love." 1 Corinthians 16:14
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He says this. But for the majority of his life, he does not act on it.
It is the same old tale. Young man is ambitious and devotes all his effort into creating his success. Young man neglects the people around him. Young man regrets and lament about it, after he has achieved his success.
As much as most people will not disagree with WB's 'ultimate test,' few youths actually live their life making that a priority.
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(03-09-2019, 07:43 AM)karlmarx Wrote: He says this. But for the majority of his life, he does not act on it.
It is the same old tale. Young man is ambitious and devotes all his effort into creating his success. Young man neglects the people around him. Young man regrets and lament about it, after he has achieved his success.
As much as most people will not disagree with WB's 'ultimate test,' few youths actually live their life making that a priority.
I would like to say it is probably "old man regrets" rather than "young man regrets".
I like to talk to older people and understand their regrets and some time ago, i realized actually WB is no different from those around me that i have talked to. There is always a common theme for most.
I would also like to argue that there is a whole ton of people living their life making WB's ultimate test a priority. They are just under the radar as they don't appear much on media (even social media) - they just carry on with life as it is.
@dreamybear, if you are actually clueless what me and karlmarx is talking about, you could probably take time to watch the "Becoming WB" documentary in the VB thread that aired 2 years ago (if you haven't). The clue is to read behind the lines when they interview Susie Buffett (WB's daughter)
https://www.valuebuddies.com/thread-7947.html
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Good comments. I don't deem Buffett to be successful in his personal life either, but neither is it bottom quartile per se.
Say if a genie appears to these old men and able to reverse their life to 50 years prior; Would they asset allocate their time between family and work differently for different outcome? Im actually not sure.
Advice helps in building wisdom; but execution is another thing altogether.
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
Think Asset-Business-Structure (ABS)
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On the contrary, though i never want to get into debt, and i am debt less since time immemorial, i don't mind if the banks or people will lend memoney if no collateral is needed.
DT may have Russian Connection, me have CHINA U know?
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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(03-09-2019, 06:26 PM)Temperament Wrote: i don't mind if the banks or people will lend memoney if no collateral is needed.
They do. Credit card balance transfer can lend you money for 12 months at about 5% p.a., without collateral. It is probably the cheapest unsecured loan one can get.
With the introduction of digital banks, we could well see more unsecured lending, and probably at more competitive rates. This certainly will have negative implications for the 3 local banks, the 3 finance companies, and the 3 pawnbrokers.
The pawnbrokers are the most vulnerable, because of their high lending rates (12% p.a. secured from pawnbroker vs 5% p.a. unsecured for someone with a credit card). If the digital banks are able to offer more competitive loans to the 'underbanked,' the pawnbrokers may be the hardest hit.
With regards to WB, he actually did -- on at least one occasion, during his earlier partnership years -- take out loans to buy stocks.
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Wait a minute, i mean nobody wants to lend to DJ except the bank sponsors by the Russian?
If only China want to sponsor me.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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87
(03-09-2019, 11:06 AM)weijian Wrote: (03-09-2019, 07:43 AM)karlmarx Wrote: He says this. But for the majority of his life, he does not act on it.
It is the same old tale. Young man is ambitious and devotes all his effort into creating his success. Young man neglects the people around him. Young man regrets and lament about it, after he has achieved his success.
As much as most people will not disagree with WB's 'ultimate test,' few youths actually live their life making that a priority.
I would like to say it is probably "old man regrets" rather than "young man regrets". Hah! I should really read what I've written before posting. 
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(03-09-2019, 11:06 AM)weijian Wrote: @dreamybear, if you are actually clueless what me and karlmarx is talking about, you could probably take time to watch the "Becoming WB" documentary in the VB thread that aired 2 years ago (if you haven't). The clue is to read behind the lines when they interview Susie Buffett (WB's daughter)
https://www.valuebuddies.com/thread-7947.html
Thanks weijian for the tip - I managed to find some time today to skim thru' the documentary. Incidentally, I also skimmed thru his autobiography "The Snowball" a few years back. I think he is born different from normal folks, i.e. he is destined for an extraordinary life. For me, his kind of life is too extreme, I wld prefer a normal kind of life(albeit richer than average to be able to do the things I want without unwarranted attention). 
But I think most of the older generations of fathers(especially the traditional kind, i.e. children are to be seen not heard) tend to focus more on career than children.
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