> Warren Buffett Blog: May 2015

Monday, May 25, 2015

Warren Buffett advice to 11 year old inventor

"Meeting Warren Buffett was amazing,” says Matthew Meyer a 11 year old kid who invented Grip Wizard, a fabric strap holding the pinky and ring fingers to the palm, allowing kids to master the tripod grip necessary for holding a pen or pencil.

“Warren Buffett encouraged me to continue on with my idea and said that ‘the best investment is an investment in myself.’ That means doing well in school, learning from your mistakes, believing in yourself and never giving up.”

Thursday, May 21, 2015

Avoiding some mistakes key to success

"We’ve done a lot of stupid things but we’ve avoided a small subset of stupidity and that subset is important. It’s about avoiding the dumb things."

Wednesday, May 20, 2015

A purpose to everything you do

"If the only reason you find for doing something is because others are doing it then that’s not good enough."

Tuesday, May 19, 2015

Warren Buffett confident on IBM future

I think ten years from now they will be earning a fair amount more money than they are now and I think they will have a fair amount fewer shares. Our percentage ownership will be up and I think we'll make considerable money.

Monday, May 18, 2015

Passion in life and work

"Do what you’re passionate about. If you do this, there will be few people competing or running faster than you. "

Warren Buffett on Clayton lending role in helping people

According to Warren Buffett, many of Clayton's lending customers pose higher risk for lending, so therefore charging them higher interest rates was justified.

I make no apologies whatsoever about Clayton's [alleged predatory] lending terms. It's true that manufactured housing hits the lower end of the market. The main question is whether a company can make sensible loans to people so that they can continue making those payments and keep their houses. In that regard, Clayton has been "exemplary".

If we make a mistake, it hurts them and it hurts us, and that is a very unusual arrangement in the financial industry.

Buffett explains the main causes for loan default are - job loss, divorce and death.

That happens with high-priced houses as well. It happens more often with people who are living closer to the edge, but I don't think that's a reason to deny them a house.

Friday, May 15, 2015

Warren Buffett jokes about his diet

In the last 30 years, one quarter of all the calories I’ve consumed have come from Coca-Cola.

Thursday, May 14, 2015

Face your fears to be stronger

"I think I developed courage when I learned I could deal with hardship. You need to get your feet wet and get some failure under your belt." 

Wednesday, May 13, 2015

Wealthy sending their kids to private schools

The wealthy in many cities have opted out of the public school system. Some of them may be involved philanthropically, but with our own kids, we send them to private schools.

Tuesday, May 12, 2015

Berkshire will resist activist shareholders

The market value of Berkshire is going to be so great that, even if all the activists got together, they couldn’t do much about it.

Monday, May 11, 2015

Charlie Munger praises McDonalds role in society

"They [Mc Donalds] take people and give them a first job, which enables them to get a second job. They do a very good job of educating troubled young people to be good citizens and they're probably more successful than charter schools." -Charlie Munger

Thursday, May 7, 2015

Bonds are expensive says Warren Buffett

If I had an easy way, and a non-risk way, of shorting a whole lot of 20- or 30-year bonds, I’d do it. But that’s not my game, and it can’t be done in the kind of quantity that would make sense for us. But I think that bonds are very overvalued, I’ll put it that way.

Wednesday, May 6, 2015

Buffett says he was wrong on inflation

So far, I have been wrong on interest rates. It is so hard for me to believe that you can drop money from a helicopter and not have inflation, but we haven’t.

Monday, May 4, 2015

Could Berkshire qualify as a SIFI

Even as it operates one of the world’s largest insurers, Berkshire is unlikely to be named a SEFI (Systemically important financial institution) according to Warren Buffett. He said regulators haven’t contacted the firm about the tag, which can mean tougher capital, leverage and liquidity requirements.

"There is no reason, in logic or in terms of what we've heard, to think that Berkshire would be designated as a SIFI,” Buffett said. He added that SIFIs tend to get at least 85 percent of revenue from financial operations, and “we don’t come remotely close to that.”

"I do not think Berkshire comes within miles of qualifying as a SIFI."