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

“Paths to wealth through reading”

Be like Buffett

I encouraged my 14 years old son to read with me chapter 8 and chapter 20 of the “Intelligent Investor”. Just 2 pages a day but consistently, everyday for roughly 20 days. Here’s what happened.

We really enjoyed sharing together in a world of wisdom that “neither derives pleasure from being with the crowd or against the crowd”. I also thought that in this “social media-glued to the smartphone-world”, the lesson was really worth the effort. It felt that Marco Aurelio, Emerson, and many non-investors giants were right there with us.

The intelligent Investor of the future can easily be the one who is introduced to and prepared to use the tools of the trade at a very young age. The sooner he starts his journey the better. Incredible results are in store for him at the end of a long road; he must learn continuously and put into practice those concepts that come from timeless wisdom.

These evergreen principles I have mentioned multiple times before in this little unpretentious blog about investing and life and are based upon the two building blocks that are in chapter 8 and chapter 20 of the book by Ben Graham “The intelligent Investor”.

They contain and underpin the concepts of “Margin of Safety” and buying and thinking of stocks as a “Piece of a business”. Graham brightly reflects (in a style of writing that I find fascinating and so clear) about the temperamental qualities and the attitude toward the stock market that the Investor must pursue and develop. He also touches on how to handle the allure of speculation versus investing.

It’s breathtaking to acknowledge how all this can provoke curiosity and genuine interest in a young mind. It happened to my son in a course of about 20 days. It only takes about 20 minutes (2-3 pages) of reading a day to get an accurate overview of these two gems. Take notes or highlight the areas of the chapters that inspire you to look back and reflect on in future.

What a great and fun little commitment to do daily now in exchange for a huge reward in the future! Being prepared at a young age to handle the bizarre “Mr. Market” and learning how to deal with your own reactions to “his” mood swings is quite a reward indeed. I’ll say it again: reading those 2 chapters with my 14 years old son has been terrific. Like Buffett did, it’s good to read them multiple times; never too often for the thorough investment student of today who wants to be the competent intelligent Investor of tomorrow.

Feel free to comment and write to me at:

marco@blikebuffett.com

 

Walter Schloss introduced to my son

Be like Buffett

Among the “Superinvestor” of Graham and DoddsVille one of the most interesting one was Walter Schloss. Schloss passed away in 2012 and he has to be introduced and known by young kids and young adults because of his old-fashioned style of investing that really intrigues me a lot. His adversion to lose money and his passion to buy cheap stocks combined with his extremely sharp ability to find them was impressive. It is also true that today seems impossible to find stocks of companies so undervalued. However my impression and feeling is that we can still follow the concept, especially with small amount of money.

Generally speaking what Walter was looking for can’t go out of fashion. It is something you want to teach to a teenager that buys stocks on the open market. Companies with a sustainable amount of debt, with a record of being good companies and trading at a fair price, if not anymore at an oustanding price like the good old times, must be the ones on your radar. I may be wrong but I guess that if Warren would have thought of Schloss before buying at a high price Kraft-Heinz or made him a phone call before entering again the “Airline Business” recently..it would have probably changed his mind and saved Berkshire some money.

Truth is that you cant play so easily an already competitive difficult game if you have to invest and manage billions like Berkshire.  But with smaller amount of money you will find something. Walter once said ” I don’t like to buy even outstanding companies at the price that they are worth, but at a discount”. He reminds us that even when history doesn’t repeat itself, it rhymes. And so the emotions of the market must serve you well someday if you have a prepared mind. Some other day they will tell you what the right values are.  At that point, you step in son, when the old prices are swept away, and only the Intelligent Investor remains on the field to grab the fruits of his patience, at the end of his precious boredom.

Generosity of immigrants and Focus

Be like Buffett

The story of Mrs. B from Nebraska Furniture Market is a story known very well to every Buffett student and Berkshire shareholder.

Starting from scratch and becoming the greatest furniture mall of the Country is a perfect example of how big can be the generosity of an immigrant determined to establish herself in a new place perceived as home. The life of Mrs. B has a lot to say to every business mind. Especially the ones interested in achieving outstanding results in the business field, without wandering in a redwood of formulas eventually feeling lost realizing how impossible would be to confine hard work and talent to make money and running a buisiness in a formula. And rightly so. Thank Goodness on a personal note I’d say I’m glad it is so because the reality is easier.

Easier to understand doesn’t mean it is not difficult to apply everyday. The drive and the willingness to succeed have no substitute. Just like hard work and consistency. And Focus. Because “a short focus is not conducive to long profits”. Warren said.. Amen.

Don’t worry, be honest

THE BUSINESS OF LIFE

The most important thing I always looked for in great investors and great business minds is integrity. From there I started to evaluate my relationships with the others in every field under a new light. It improved my life a big deal. Ethics improves your skills in business teaching you that everyday you advertise yourself with your words and actions, with your positive attitude.

If you are passionate about doing things for the others, if you like giving, you’ll be successfull in the “give and take” journey of life. I think we are out there everyday doing our best to earn trust from people and customers. “Trust then Verify” Reagan said once.

Conversely, an italian writer once described a world we don’t want in which a crook is asked by a friend if he’s not worried about his reputation at least among his neighbours..He answered: “Don’t worry, They are too busy with their crimes to notice mine”.

Buy the unpopular

Be like Buffett

Year 2000 is approaching: at 70 years old Buffett was considered obsolete and old. His time over, his gold touch gone in the face of the new tech wave of companies which prices had sky-rocketed as much as their popularity. Berkshire had not a single tech stock in portfolio.The price of BRK at his lowest. Recent investments? 22Billion, a huge sum, for General RE seemed from its start to be disappointing. Shareholders were discomforted to say the least and already urged him to do something, to follow the crowd in the tech field or go more international.

So, we are back in 2020, two decades later. Having polished my rear-mirror when I meet people and they tell me that they are buying the stocks of the moment, the “hot ones”, those that are popular..I’m glad I’m not. Conversely I’m happy if a price of an unpopular stock makes sense to me and only to my reasoning. I feel I’m on the right path even though many people can think I’m “out of touch” and old-fashioned or something of the sort. Not only I don’t care but I’m happy. The biggest mistake you can make in stocks is to buy at a high price something everybody is buying and because everybody is buying it. There are in 2020 compared to 1999 tech companies that really have value and are wonderful businesses. However, I still think, like Sir John, that we must look for bargains, and/or for wonderful companies but at least at “reasonable prices”.

“You’re not right or wrong because a thousand people agree with you or because a thousand people disagree with you. You’re right because your facts and reasoning are right” . And you have to base your facts and reasoning upon the fundamental qualities and numbers of a business. To do so learn from the best teachers, be a constant learning machine and analyse as many companies and reports you can absorb. Then build your own castle of investing. I bet you will be a lot happier in the process than following the crowd, and a lot richer too.

 

It’s a temperamental quality

Be like Buffett

You have to have discipline. You have to be consistent in your reading, analysing, in doing your homework everyday. But then there’s something you have to deal with that I don’t know if it’s teachable, if it is talent or what. You feel it’s time to swing, the business you want to buy shares of, or you want to buy into seems excellent from a value standpoint. You did what you had to do but it’s time to test your temperament, your emotions. It’s time to spend the money and you are not going to use the eyedropper. It’s time to test if you are really wired to stick with the fundamentals and the facts upon which you based your reasoning. It’s time to test if you are going to sleep well with your investment because you know that your reasoning was right even if all other investors or funds or analysts said otherwise.

Sir John Templeton used to say that the lowest price of a stock could easily be when this particular stock is not only out of fashion among the crowd but when rumors that it will go worse in the future are thrown around. Are you ready like us to be greedy when other are fearful? Ready to feel sincerely good when the Dow is down?

September is a special month for many reasons worldwide. It’s kind of a re-start. It was a wonderful month for me in 1987 (I was actually 11 year old and starting a new chapter of my life at a new school with extraordinary kids that I still count as friends). It was a great time to buy stocks too if only I had the money back then… So lets celebrate and keep our september spirit up. I’m confident that if it’s true that some people are really out of tune about the market and they shouldn’t buy stocks, many others can improve also their temperamental qualities over the long run. If so, the improvements in every aspect of life and in the lives of others will be wonderful. That’s what “blikebuffett” means, more than money to be made.

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Last posts

“Paths to wealth through reading”

Be like Buffett

I encouraged my 14 years old son to read with me chapter 8 and chapter 20 of the “Intelligent Investor”. Just 2 pages a day but consistently, everyday for roughly 20 days. Here’s what happened.

We really enjoyed sharing together in a world of wisdom that “neither derives pleasure from being with the crowd or against the crowd”. I also thought that in this “social media-glued to the smartphone-world”, the lesson was really worth the effort. It felt that Marco Aurelio, Emerson, and many non-investors giants were right there with us.

The intelligent Investor of the future can easily be the one who is introduced to and prepared to use the tools of the trade at a very young age. The sooner he starts his journey the better. Incredible results are in store for him at the end of a long road; he must learn continuously and put into practice those concepts that come from timeless wisdom.

These evergreen principles I have mentioned multiple times before in this little unpretentious blog about investing and life and are based upon the two building blocks that are in chapter 8 and chapter 20 of the book by Ben Graham “The intelligent Investor”.

They contain and underpin the concepts of “Margin of Safety” and buying and thinking of stocks as a “Piece of a business”. Graham brightly reflects (in a style of writing that I find fascinating and so clear) about the temperamental qualities and the attitude toward the stock market that the Investor must pursue and develop. He also touches on how to handle the allure of speculation versus investing.

It’s breathtaking to acknowledge how all this can provoke curiosity and genuine interest in a young mind. It happened to my son in a course of about 20 days. It only takes about 20 minutes (2-3 pages) of reading a day to get an accurate overview of these two gems. Take notes or highlight the areas of the chapters that inspire you to look back and reflect on in future.

What a great and fun little commitment to do daily now in exchange for a huge reward in the future! Being prepared at a young age to handle the bizarre “Mr. Market” and learning how to deal with your own reactions to “his” mood swings is quite a reward indeed. I’ll say it again: reading those 2 chapters with my 14 years old son has been terrific. Like Buffett did, it’s good to read them multiple times; never too often for the thorough investment student of today who wants to be the competent intelligent Investor of tomorrow.

Feel free to comment and write to me at:

marco@blikebuffett.com

 

Walter Schloss introduced to my son

Be like Buffett

Among the “Superinvestor” of Graham and DoddsVille one of the most interesting one was Walter Schloss. Schloss passed away in 2012 and he has to be introduced and known by young kids and young adults because of his old-fashioned style of investing that really intrigues me a lot. His adversion to lose money and his passion to buy cheap stocks combined with his extremely sharp ability to find them was impressive. It is also true that today seems impossible to find stocks of companies so undervalued. However my impression and feeling is that we can still follow the concept, especially with small amount of money.

Generally speaking what Walter was looking for can’t go out of fashion. It is something you want to teach to a teenager that buys stocks on the open market. Companies with a sustainable amount of debt, with a record of being good companies and trading at a fair price, if not anymore at an oustanding price like the good old times, must be the ones on your radar. I may be wrong but I guess that if Warren would have thought of Schloss before buying at a high price Kraft-Heinz or made him a phone call before entering again the “Airline Business” recently..it would have probably changed his mind and saved Berkshire some money.

Truth is that you cant play so easily an already competitive difficult game if you have to invest and manage billions like Berkshire.  But with smaller amount of money you will find something. Walter once said ” I don’t like to buy even outstanding companies at the price that they are worth, but at a discount”. He reminds us that even when history doesn’t repeat itself, it rhymes. And so the emotions of the market must serve you well someday if you have a prepared mind. Some other day they will tell you what the right values are.  At that point, you step in son, when the old prices are swept away, and only the Intelligent Investor remains on the field to grab the fruits of his patience, at the end of his precious boredom.

Generosity of immigrants and Focus

Be like Buffett

The story of Mrs. B from Nebraska Furniture Market is a story known very well to every Buffett student and Berkshire shareholder.

Starting from scratch and becoming the greatest furniture mall of the Country is a perfect example of how big can be the generosity of an immigrant determined to establish herself in a new place perceived as home. The life of Mrs. B has a lot to say to every business mind. Especially the ones interested in achieving outstanding results in the business field, without wandering in a redwood of formulas eventually feeling lost realizing how impossible would be to confine hard work and talent to make money and running a buisiness in a formula. And rightly so. Thank Goodness on a personal note I’d say I’m glad it is so because the reality is easier.

Easier to understand doesn’t mean it is not difficult to apply everyday. The drive and the willingness to succeed have no substitute. Just like hard work and consistency. And Focus. Because “a short focus is not conducive to long profits”. Warren said.. Amen.

Don’t worry, be honest

THE BUSINESS OF LIFE

The most important thing I always looked for in great investors and great business minds is integrity. From there I started to evaluate my relationships with the others in every field under a new light. It improved my life a big deal. Ethics improves your skills in business teaching you that everyday you advertise yourself with your words and actions, with your positive attitude.

If you are passionate about doing things for the others, if you like giving, you’ll be successfull in the “give and take” journey of life. I think we are out there everyday doing our best to earn trust from people and customers. “Trust then Verify” Reagan said once.

Conversely, an italian writer once described a world we don’t want in which a crook is asked by a friend if he’s not worried about his reputation at least among his neighbours..He answered: “Don’t worry, They are too busy with their crimes to notice mine”.

Buy the unpopular

Be like Buffett

Year 2000 is approaching: at 70 years old Buffett was considered obsolete and old. His time over, his gold touch gone in the face of the new tech wave of companies which prices had sky-rocketed as much as their popularity. Berkshire had not a single tech stock in portfolio.The price of BRK at his lowest. Recent investments? 22Billion, a huge sum, for General RE seemed from its start to be disappointing. Shareholders were discomforted to say the least and already urged him to do something, to follow the crowd in the tech field or go more international.

So, we are back in 2020, two decades later. Having polished my rear-mirror when I meet people and they tell me that they are buying the stocks of the moment, the “hot ones”, those that are popular..I’m glad I’m not. Conversely I’m happy if a price of an unpopular stock makes sense to me and only to my reasoning. I feel I’m on the right path even though many people can think I’m “out of touch” and old-fashioned or something of the sort. Not only I don’t care but I’m happy. The biggest mistake you can make in stocks is to buy at a high price something everybody is buying and because everybody is buying it. There are in 2020 compared to 1999 tech companies that really have value and are wonderful businesses. However, I still think, like Sir John, that we must look for bargains, and/or for wonderful companies but at least at “reasonable prices”.

“You’re not right or wrong because a thousand people agree with you or because a thousand people disagree with you. You’re right because your facts and reasoning are right” . And you have to base your facts and reasoning upon the fundamental qualities and numbers of a business. To do so learn from the best teachers, be a constant learning machine and analyse as many companies and reports you can absorb. Then build your own castle of investing. I bet you will be a lot happier in the process than following the crowd, and a lot richer too.

 

It’s a temperamental quality

Be like Buffett

You have to have discipline. You have to be consistent in your reading, analysing, in doing your homework everyday. But then there’s something you have to deal with that I don’t know if it’s teachable, if it is talent or what. You feel it’s time to swing, the business you want to buy shares of, or you want to buy into seems excellent from a value standpoint. You did what you had to do but it’s time to test your temperament, your emotions. It’s time to spend the money and you are not going to use the eyedropper. It’s time to test if you are really wired to stick with the fundamentals and the facts upon which you based your reasoning. It’s time to test if you are going to sleep well with your investment because you know that your reasoning was right even if all other investors or funds or analysts said otherwise.

Sir John Templeton used to say that the lowest price of a stock could easily be when this particular stock is not only out of fashion among the crowd but when rumors that it will go worse in the future are thrown around. Are you ready like us to be greedy when other are fearful? Ready to feel sincerely good when the Dow is down?

September is a special month for many reasons worldwide. It’s kind of a re-start. It was a wonderful month for me in 1987 (I was actually 11 year old and starting a new chapter of my life at a new school with extraordinary kids that I still count as friends). It was a great time to buy stocks too if only I had the money back then… So lets celebrate and keep our september spirit up. I’m confident that if it’s true that some people are really out of tune about the market and they shouldn’t buy stocks, many others can improve also their temperamental qualities over the long run. If so, the improvements in every aspect of life and in the lives of others will be wonderful. That’s what “blikebuffett” means, more than money to be made.