From the Presidential Medal
of Freedom presentation

Warren E. Buffett : as a world-known investor and philanthropist, Warren E. Buffett business acumen is matched only by his dedication to improve the lives of others. He is the co/founder of the Giving Pledge, an
organization that encourages wealthy Americans to donate at least 50percent of their wealth to philanthropic causes.

Warren Buffett’s example of Generosity and Compassion has shown us the power of one individual’s determination in inspiring countless women and men to help make our world a brighter place.

Last posts

Yes, you can lose…

Be like Buffett, DisciplineNovembre 24, 2021

“The most worthless of mankind are not afraid to condemn in others the same disorders which they allow in themselves”

Edward Gibbon “The decline and fall of the Roman Empire”

Prize in others the good qualities you’d like to have but you are struggling to achieve. It is not only paramount to find the right mentors and models in life. It is also critical to spot immediately what doesn’t work for you. If you think independently chances are that most people will not agree with you. And some other times you will find a lot of people supporting you in something that can be clearly a mistake. To fail “conventionally” seems to be more acceptable than to fail “unconventionally”. And in the investment world to succeed unconventionally would be almost considered outrageous or at least an anomaly by many of those that didn’t succeed at all. That’s why most business schools considered Buffett and Munger (and probably they still consider them) a statistical anomaly. Outliers its what they say! Warren would say that human nature has such a perverse tendency sometimes to complicated things to the point that to apply too much of a simple thing like Rationality can be considered an exception. I would only add that Rationality has in many of us a big enemy: emotions. That’s why our journey starts from there in the investment world and investing in common stocks especially. It starts from Temperament. It starts from Patience. Observe yourself and the others. Recognize your strengths and weaknesses. Be ready to criticize yourself and learn from the others. One of the best advice I got from Buffett it’s to write down the qualities of your heroes and write down also all the traits of the persons you really don’t like. The ones that make your stomach to churn. Write down who you really don’t want to be. It ‘ s hard to change but it’s doable. Yes you can lose, but only if you don’t try.

marco@blikebuffett.com

“It is more human to laugh”

Be like Buffett, Be thankful, be lovableNovembre 23, 2021

“It is more human to laugh at life than to lament it”

Seneca, On Tranquility of mind

What do you do with sadness? What is the advantage of being a victim and surrender? We all face obstacles that are outside our control. If we have applied our best efforts and at the best of our capabilities and nonetheless things went wrong, what will be our reaction? Great people have great spirits. Great investors are prepared to face hurdles and adversities that happened out of their reasoned choice. The best reaction is to laugh at things rather than complaining or blaming someone else and criticize. What was Mr Buffett’s reaction when interviewed after Kraft Heinz went down significantly writing off its good will, cutting the dividend and so on? I always saw Buffett laughing when mentioning his “many mistakes”. A long successful journey requires a big portion of mistakes. It’s a 18 holes golf course. If you want to get to the clubhouse you got to play them all. The good and the bad. If you don’t train yourself in keeping up your good spirit, anger or hard feelings will take control of your mind. Don’t let them. Never. Even when dealing with the outcome of a mistake or a poor decision don’t let anger dry up your reason. We all face bad decisions. Was it a good decision for Buffett to stay for twenty years in the textile business when he bought Berkshire in 1965? Tranquility of mind and a lot of good subsequent acquisitions fixed a bad financial decision that he now remembers with a smile. If you can’t laugh at things because it seems too hard try at least to smile and move forward.

Live well

Benjamin Franklin, Discipline, THE BUSINESS OF LIFENovembre 22, 2021

“We should live well but not in luxury”

Seneca, “Moral letters”

What does truly make you happy? Seneca and the stoics thought that happiness resides easily in small things. Incidentally Benjamin Franklin many centuries later pointed out that more than in the big strikes of luck, that also may happen, happiness can be found in the little satisfactions or pleasures that life offers every single day. They were all rich guys. Seneca was very rich just like Franklin was. Therefore they lived well, but not in luxury. They knew what they wanted from life. They were able to focus on what was important. The ability to make money and save and constantly learn and grow was a consequence of their exceptional personality and discipline. They had clear in their mind what to pursue in life to be happy and useful to society and how to use wisely the ultimate asset : time.

How can be important the search for luxury if you already live well and intelligently use your time and money? Yes, time and money to live well. I would add that you will definitely not only live well but you will be better off without luxury, especially if you can’t totally afford it. Many miserable life have been lived in the pursuit of luxury. I find crazy to trade the chance of a good life to obtain luxury and use it to impress people that don’t love you. Try first to be loved by the ones that already love you because of you and not because of your luxury toys.

Permanent Holdings

Be like BuffettNovembre 1, 2021

Puo’ essere che “Forever is not as long as it used to be”. Maybe, ma non di meno I grandi risultati per il vero investitore si misurano sul lungo termine. Wall Street ne e’ una evidente dimostrazione. Chi ha investito con me condivide da principio che noi siamo un Gruppo “long-term greedy”. Alcuni businesses acquisiti ad un Prezzo che ha garantito un sufficiente “Margin of Safety” sono giustamente considerati nel portafoglio di un vero Value Investor come Permanent Holdings. Il compito dello scrupoloso e diligente portfolio manager come analista e’ quello di monitorare le vicissitudini dell’azienda, di cui possiede un pezzo, attraverso il medium delle sue azioni. Per vicissitudini si intende le caratteristiche del business sottostante e il mantenimento del proprio valore e potere di produrre utili e un buon cash-flow costanti nel tempo. Il mantenimento di un vantaggio competitivo e I numeri confortanti dei bilanci sono I fatti su cui basare le decisioni di acquisto ulteriore o vendita. Le grandi meravigliose aziende sono rare e la filosofia giusta e’ quella di rimanere per lunghissimo tempo proprietari di un business simile. Siamo indifferenti alle vicissitudini e fluttuazioni del Prezzo nel breve termine, se non nella misura in cui si possano utilizzare le discrepanze tra prezzo e valore per comprare di piu’ di cio’ che gia’ si possiede. “Dancing in and out” non ha senso in una visione di lungo termine basata sul conoscere a fondo cio’ di cui si e’ proprietari. Se siete dei “business owners” conoscete a fondo la vostra azienda e cio’ che possedete, pregi e difetti. E’ sotto questa luce e lo sforzo che e’ richiesto per fare cio’ (il lavoro di approfondita ricerca ed analisi) che possedere un elevato numero di azioni in portafoglio non ha senso. Anzi aumenta il rischio al posto di eliminarlo (e’ difficile seguire approfonditamente e pretendere di conoscere molteplici settori e aziende) ed e’ una manifesta ammissione che non si conosce a fondo cio’ che si possiede. La diversificazione e’ un giusto strumento di protezione contro l’ignoranza come dice Buffett. Utile e doverosa per chi non ha il tempo e la voglia di approfondire la conoscenza di cio’ in cui investe. Per l’Investitore Intelligente una volta individuate con lunga analisi e duro lavoro un business e comprate le sue azioni ad un Prezzo attraente, la tentazione ammissibile e’ solo quella di averne il piu’ possible. “I don’t have to win in every game”. WB. Ditto.

Per concludere, ricevo emails con consigli di libri da leggere e richieste dei libri che leggo. Sto leggendo due libri non nuovi. Cosa che faccio spesso per confrontare previsioni di vecchi autori su cio’ che e’ poi davvero successo dopo, cioe’ oggi nei mercati. Ne scrivero’ appena li finisco. Il mio prossimo acquisto coerente con questo breve articolo sara’ invece “The long Game” di Dorie Clark, “How to be a long term thinker in a short-term world” (Harvard business Review) consigliato da Guy Spier, sul cui sito trovate una “review”.

Remember: the best way to become successful is to deserve it

marco@blikebuffett.com

Supermoney

Be like Buffett, DisciplineOttobre 10, 2021

Quanto sono attuali ed applicabili oggi i principi dell’ “old school” of investing nel mondo tech dominato da Amazon, FB, etc? E’ Supermoney, il libro di Adam Smith del 1972 diventato sinonimo di Supervalutazioni a Wall Street oggi? E titoli come Tesla si sgonfieranno mai? Marketwatch di recente ha pubblicato un articolo il cui titolo era un invito a tornare ai principi buffettiani ora piu’ che mai in un mercato definito “frothy”: gonfio di bolle quindi, non necessariamente una bolla totale in se’ per se’. Bella scoperta. Le discrepanze tra prezzo e valore sono sempre state presenti e anche se erano in numero infinitamente superiore in passato (e addirittura migliaia nel periodo dal 1974 in poi quando Buffett poteva comprare l’intero Washington Post per 80 milioni e mille altre cose a prezzi ridicoli) non significa che il metodo per individuarle sia poi cambiato di molto. Il problema e’ che semmai oggi, dopo avere individuato una corporation che e’ sottovalutata e con buoni numeri e poco debito, una balance sheet pulita insomma ad un prezzo attraente o ragionevole..be’ il giorno dopo lo sanno gia’ tutti e anche se oscura, il prezzo per azione comincia a schizzare in alto e non e’ piu’ comprabile. Almeno non per l’investitore professionista o il broker-dealer alla ricerca di un certo margine di sicurezza e risultati non mediocri per i propri investitori e clienti. Io credo che la necessita’ ancora maggiore oggi di pazienza, attesa e qualita’ caratteriali e temperamentali sia un vantaggio ulteriore sulla massa da parte dell’investitore intelligente del XXI secolo. La sua macchina da guerra, il cervello, che valuta indipendementente da Wall street e dagli analisti, deve aggiornarsi e si aggiorna con la sua disciplina quotidiana. Se hai queste necessarie qualita’ e le applichi con 8 o 9 ore al giorno di studio e lettura, usando gli strumenti giusti, la teoria e’ rimasta la stessa. La stessa di Schloss, di Guerin, di Bill Ruane e Warren e Munger decenni fa. Possiamo spostare soglie, parametri, cambiare anche geografia se necessario nella ricerca, ma la cornice intellettuale e razionale e’ invariata. Anche nell’ ipervalutato e iperattivo mondo del daytrading, comprare dollari per 40 centesimi rimane ancora l’unico scopo del SuperInvestor. Il metodo e la disciplina per ottenere questo scopo e’ cio’ che lo interessa, ogni giorno ed in ogni condizione di mercato.

marco@blikebuffett.com

Waiting (part2) and “Is investing for everyone?”

Be like Buffett, Discipline, EducationSettembre 2, 2021

WAITING (part 2) and “Is Investing for everyone?”

“If you are not ready to own a stock for ten years, you shouldn’t own it for 10 minutes” Uncle Warren says. As I have said previously, too much of a good thing is a wonderful thing in investing. But good businesses are really hard to find. That’s why when you find one, you’ve got to seize it. And stick with it as long as it remains a trusted partner, a best friend, and serves you well. It must also be understood that while you are the owner of this wonderful piece of business, its price will fluctuate, regardless of the intrinsic value of the business itself. Be patient, your reasoned choice will pay off. Keep reminding yourself of that in moments of doubt, when you’re tempted to offload it so you can buy ‘more’ at a discount.

Investing can be for everyone, but with one condition: you have to be ready to do the extra-work. Make an effort to become more disciplined. Every single day. Reading, studying, and planning out investments shouldn’t be annoying or overwhelming. It has to become a part of you, a second-nature. It shouldn’t vex you or cause you pain. Conversely, it should be a world in which you feel completely free to create; your own personal canvas where you get to paint using your unique colors. Pursuing wisdom and knowledge is the ultimate goal in your art. Being willing to learn and success will make you pick the right colors, the ones that are good for your soul and your wallet. “Nothing is forced upon you” says Warren. If you are not inspired, you don’t have to paint anything. Just like in jazz a good silence can become a wonderful piece of improvisation. It’s okay to wait patiently until you feel sure that you can bring something to the table, “and then you swing”. It doesn’t mean you have to know everything. Absolutely. But you really have to know what you know. More importantly, you have to know what you don’t know, and that there are things that you simply don’t understand or are able to put in practice.

Patience, perseverance and time will tell if your “facts and reasoning” were right. And they will show you that you can invest and make a profit if you like learning and you don’t give up. Again “You don’t have to win in every game” says Buffett. You’ll find your way. Learning from the greatest investors will give your reasoned choice the opportunity to adjust itself while you gain experience making your own decision. With time and patience, you’ll discover how to put your own twist on others’ ideas.