I'm good at 'collecting' books
Here is another.
Invest like Warren Buffett: How a newspaper delivery boy earned 58 billion dollars
Here is another.
Invest like Warren Buffett: How a newspaper delivery boy earned 58 billion dollars
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I'm good at 'collecting' books
Here is another.
Invest like Warren Buffett: How a newspaper delivery boy earned 58 billion dollars
Ozbargain member too?
Haven't read it, but from my limited knowledge of comparables, he (and Charlie Munger) are quite unique in what has been achieved.
Average of 19.7% annual compounding growth over 48 years!
I would have loved to have invested just a couple of hundred dollars back then at the start!
Dis he so anyhing special? Or was it all a combination of luck, timing, being rich to start off with, having nerves of steel
Just curous, for the record i have the uttermost respect for him
He has good principles but what set him a part is his ability to reinvest surplus cash at extremely high return rate ... He also has access to pretty much interest free capital via float in his insurance business.
this combination of access to cheap capital that enable him to leverage
without ever being get caught out in time of credit squeeze or rising interest rate or a whole raft of problems people leverage by borrowing from the banks.
he go to great distance to protect himself from a force seller, so basicly he doesn't have large banks debt... his access to leverage is his float from insurance business ...
I am pretty much doing the same ... I cant be a force seller, no debt, lot of cash surplus sitting at call account ... In time of stress I unload my capital to buy ...
What's a force seller?
A bit awkward wording there what I mean is he never put himself in a position he is force to sell his equity or business in crisis due to high debt load or credit squeeze or some other financial disaster events.
In fact it is usually the opposite, when he is debt free and he usually hold minimum 10bn cash but usually between 10-25bn he is a buyer from those who over leverage or got squeeze by credit.
Look at some of the deal he made when credit squeeze hit during GFC..no one has cash but Warren Buffett...he made some incredible deal with Goldman Sachs
10% interest for his money plus options to buy stock cheap! he virtually double his money in a few year with that deal.
When people in trouble and required cash injection they turn to him and he work out if he reject or snapped up the deal...
Imagine properties drop 20-30% most over leverage person would be stuffed and you can't buy any more even you know it is a bargain as banks won't lend you the cash! you maybe shitty in you pants sitting on negatives equity and wonder if banks recall the loans???someone with cash would just snapped up.
$200 invested in Westfield Holdings would have been worth $48million from the IPO to 2007 prior to it being stapled. 42 years compounded at 34.3%
There's obviously more to it than just his rules though, a lot of luck,
Surely, if his success was dependent on luck it would have run out by now. He has been investing for what around 60+ years now. He must be the luckiest person on Earth to not have his luck run out for 60+ years.
Cheers,
Oracle.
Has anyone read it? Because i haven't
We all know how successfull he is but i really think a lot of people put too much emphasis on his quotes and actions
Eg people say bill gates used to like to buy all the hotels on mayfair avenue in monopoly
Like who doesn't!!!!
I know buffet likes to buy in gloom sell in boom
And a rising tide lifts all boats
And its better to overpay for a quality business as opposed to underpayibg for a dud business
Dis he so anyhing special? Or was it all a combination of luck, timing, being rich to start off with, having nerves of steel
Just curous, for the record i have the uttermost respect for him
Are you waiting for a crash?When the time is ripe I will have a one year holiday from business and go straight back to full time screen watching investing.
Are you waiting for a crash?