As the only personal biography of Warren Buffett authorized, this book presents to readers some touching stories of Buffett’s nearly 80 years of life from an unprecedented perspective, and shares his precious experience in more than 60 years of business and investment career.
Unlike other Warren Buffett biographies, this book is not a real investment book. It is not limited to describing Buffett’s wealth story and investment philosophy, but focuses on recording his family, friends, emotions, ideals, and daily life. Life, and important people and events in various stages of history.
This book uses a larger length to describe the story of the Buffett family’s roots and growth in Omaha, and the profound influence of Buffett’s grocery store run by Buffett’s grandfather. It reproduces Buffett’s growth process and interprets his life value and pursuit.
The author of this book, Alice Schroeder, spent more than 5 years interviewing more than 250 people including Buffett, his family, friends, and business partners, and the process of writing this book is like snowballing, a little bit of excavation, a little bit Exploring the mystery, interpreting and retelling Buffett’s life, using plain language to speak straight to the bottom of my heart.
One thing in a lifetime
Buffett likes money and prefers to make money sensibly. His father Howard first taught him to be an independent-minded, independent, and respectful person.
Therefore, Buffett spent his whole life doing a good job in making money. Whether life is difficult or easy, he has never stopped thinking about ways to make money and works with enthusiasm every day.
Looking back on Buffett’s life, in addition to his desire for wealth, he found a group of like-minded friends, trusting each other, and making progress together. This is also the foundation of his life pursuit and wealth.
Charlie Munger and Bill Gates are Buffett’s career partners and close friends. They are practitioners of lifelong learning. They appreciate and respect each other’s wealth and wisdom. Their investment philosophy and investment results are worthy of in-depth study and study by readers.
Focus on achieving professionalism
Countless people follow Buffett, hoping to find a way to make money from his success story.
But in this book, Buffett wants people to know that he just works with joy and concentration every day.
He studied a large number of stocks, went into the library and basement, and stayed up all night; during his honeymoon, he stuffed the back seat of the car with the Moody’s Handbook and accounting ledgers; he spent several months reading one A newspaper from the centuries, to understand the history of Wall Street; he is immersed in reading, researching and meeting from time to time every day, the phone at home will ring all day…
Investment and holding is a belief
Buffett has encountered the Vietnam War, the Cuban Missile Crisis, the two oil crises, and the subprime mortgage crisis in his wealth career. In a rapidly changing investment industry, he has maintained a compound rate of return of 20%+ during so many crises.
He said that his success is based on a firm investment philosophy: value investment, that is, before investing, make good knowledge reserves, compound interest accumulation, keep a safe margin, keep positions, grasp risk control, and abide by the circle of competence. This systematic investment thinking and method has always run through all stages of his investment career.
Choose to let go
Buffett believes that money is a string of numbers, which should be given back to society and help more poor people, so that they can be happy. When he left a check for each of his children for 1 billion U.S. dollars, he announced in 2006 that he would donate 85% of his wealth to five charitable foundations, about 37.5 billion U.S. dollars. Now, he plans to donate more than 99% of his wealth to charity.
The minimal life of ordinary people
The unexpected gain in the book is that we see Buffett’s emotional world, the way he gets along with his family, and how he educates his children. He has been living a simple and frugal life. He likes to eat burgers and drink coke. The house has not been renovated for many years, and the office has not been moved for decades. He is not interested in buying and selling real estate, art and other wealth. His biggest hobby in his free time is playing bridge and watching the news.
In fact, Buffett has been tirelessly snowballing his entire life. His capital, knowledge, and contacts are all accumulated from a small piece of snowflake to a big snowball. The years are long, but he enjoys it.
Wonderful book excerpt
With such low interest rates, the number of people who want to hold cash is declining. Therefore, investors are paying unheard prices to Linzhongniao. Sometimes, Buffett calls it “greed.”
Buffett said that some people don’t think the whole market will prosper, they just think they can pick a winner from it. Buffett explained that although innovation may lift the world out of poverty, historically innovative investors did not end up happily in the later stages.
Buffett’s approach remains the same: assess the value of investment, avoid risks, keep a margin of safety, focus, do what you can do, and let compound interest work. Anyone can understand these simple methods, but few can implement them. Although Buffett made this process seem effortless, in fact, there is a lot of work behind this, which requires him and his employees to work hard together.
At this time, Buffett is talking about their company’s business. “Promoting and publicizing new industries is a good thing, because new industries are easy to sell. It is very difficult to sell existing products. In contrast, it is much easier to sell products that no one understands, even if it is a loss-making product, because There is no requirement for quantification.” These words were directly aimed at the audience and were very lethal.
They think in the same way, are fascinated by investment, and see it as a mystery that they are willing to spend their entire lives to solve. Both of them regard reason and honesty as the highest virtues, and impulse and self-righteousness are the main causes of errors in their view. They like to explore the reasons for failure as a way to discover the laws of success. Munger said: “I have been looking for reverse insight with the enthusiasm suggested by the great algebraist Karl Jacoby. Reverse, always reverse.”
I may have mentioned that no one in the Buffett family has ever left a big Assets, but no one keeps nothing. They never spent all the money they earned, and always left a part of it. Today, this has allowed everything to develop quite smoothly. “Spent less than earned” may actually be the motto of the Buffett family, plus the inevitable conclusion of this sentence, “don’t borrow.”