The Essays Of Warren Buffett Audiobook Help With Writing A Pgce Personal Statement
Although I skimmed some part of the essays because they didn't make much sense to me right as of now, I feel I will definitely be coming back to this book to read in its entirety. They unfailingly think like owners (the highest compliment we can pay a manager) and find all aspects of their business absorbing.- "If each of us hires people who are smaller than we are, we shall become a company of dwarfs.
Buy a stake in the company as if you own a business: - first, try to assess the long-term economic characteristics of each business; second, assess the quality of the people in charge of running it; and, third, try to buy into a few of the best operations at a sensible price.Returns should not be everything:- You won't close down businesses of sub-normal profitability merely to add a fraction of a point to our corporate rate of return.However, I also feel it inappropriate for even an exceptionally profitable company to fund an operation once it appears to have unending losses in prospect.The definitive work concerning Warren Buffett and intelligent investment philosophy, this is a collection of Buffett's letters to the shareholders of Berkshire Hathaway written over the past few decades that together furnish an enormously valuable informal education.The letters distill in plain words all the basic principles of sound business practices.The two aforementioned biographies indicate that throughout his life, Buffett thoroughly enjoyed each and every opportunity to increase others' understanding of sound business principles that include but are by no means limited to investments. There are some books of 200 pages that take me more time to read than books of 400 pages.I read and then re-read every line to ensure that I don't miss one single insight. I recommend any investor, analyst and particularly accounting professionals to read it.- If at first you do succeed, quit trying.- Our goal is to find an outstanding business at a sensible price, not a mediocre business at a bargain price.- The best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return.- First, we try to stick to businesses we believe we understand.- Second, and equally important, we insist on a margin of safety in our purchase price.If we calculate the value of a common stock to be only slightly higher than its price, we're not interested in buying.- You simply want to acquire, at a sensible price, a business with excellent economics and able, honest management.Even Great Operations in unprofitable industries yield peanuts:- "A horse that can count to ten is a remarkable horse-not a remarkable mathematician." Likewise, a textile company that allocates capital brilliantly within its industry is a remarkable textile company-but not a remarkable business.- Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.- When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.7.Focus on Value Investing:- The value of any stock, bond or business today is determined by the cash inflows and outflows-discounted at an appropriate interest rate-that can be expected to occur during the remaining life of the asset.- The investment shown by the discounted-flows-of-cash calculation to be the cheapest is the one that the investor should purchase-irrespective of whether the business grows or doesn't, displays volatility or smoothness in its earnings, or carries a high price or low in relation to its current earnings and book value.- In our view, though, investment students need only two well-taught courses-How to Value a Business, and How to Think About Market Prices.- Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily-understandable business whose earnings are virtually certain to be materially higher five, ten and twenty years from now.- It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.- In analysis of operating results-that is, in evaluating the underlying economics of a business unit-amortization charges should be ignored.