Warren Buffet – Dedication and Focus


Author Alice Schroeder mentions a story that describes well – Warren Buffet’s personality type – it took place when a friend of Warren Buffet’s stayed in Mrs. Graham’s guest room and came out shocked to tell Buffet that there was a real Picasso. in the bathroom. Buffet told her that he had just noticed that there was free shampoo available in the room. Other stories deal with other powerful players such as Bill Gates and Akio Morita, in fact, Bill Gates is still considered Warren Buffet’s kindred spirit.

The right book at the right time

The book The Snowball: Warren Buffett and the Business of Life could not have arrived on the editorial scene at a better time. His prediction that derivatives were weapons of mass destruction was correct and the most accurate prediction (should we say a prophecy) of global economic collapse. He was already aware of the dangers of government intervention and bailouts of failing banks by financial institutions.

Not a perfect book

The book is not without problems. The first point is that this is an authorized biography (you can’t expect anything sensational) and the second point is the length of the book – it’s just too long (but the life of Warren Buffet and his illustrious career too). Despite these negatives, the book is absorbing and you will be forced to set aside time for the book. The author of the book Alice Schroeder was herself a financial analyst, so she knows what she is talking about while writing the book.

Internal Affairs

The book The Snowball: Warren Buffett and the Business of Life also focuses on the internal affairs going on inside Warren Buffet’s brain. The basic principle followed by Warren Buffet is to rely on his inner scorecard rather than playing the gallery. Other Wall Street tycoons were dishonored when things went wrong for them, Warren Buffet is different who didn’t fall prey to the trappings of wealth even though he was making all the money in the world. Even when he bought a private jet, he named it The Indefensible, which aptly describes the feeling he might get when he bought it. It’s unsophisticated and proudly (and deliberately). He only eats Cherry Coke, fries and burgers. Its rules for investing money are very simple, it avoids debt and remains invested in the market for the long term.

Why only one Warren Buffet?

You may wonder if these things are so simple, why is there only one Warren Buffet. The answer is – to become Warren Buffet you have to be fiercely independent minded and not everyone can maintain that mindset all the time. He didn’t participate in the dot com boom, because he didn’t understand how these companies did their business. Now we all know the obvious, he was right.

Everyone can stick to the basics

Surely anyone could do it (stick to the basics), so why is there only one Warren Buffett? The answer is that it requires a resolute independence of mind that eludes other investors. It’s not that he can easily convince economists all the time. A group of economists came up with the efficient market hypothesis and they said that according to the theory, Warren Buffet simply cannot exist. Their main belief was that individual investors could not consistently outperform the market. The theory was changed when Buffet pointed out that his other eight peers also did well because they were taught by the same professors.

Source by Prasoon Kumar

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