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

“Everyone seems to believe it..”

Be like Buffett
A few years ago, when I was in Warsaw for my CFA level I preparation course, an “academician” (professor) knowing my passion for Warren Buffett asked me: “So what do you do? Do you “copycat” what he buys, strictly following his ‘moves'(investments), and his portfolio?” I said “No, of course not! One of the first things he taught me was to think for myself”. “This is not a business in which you ask opinions or take polls. You focus on facts. This is a business in which you think!” I was surprised that he was surprised by my answer, but then I thought about the “Super Investor of Graham and Doddsville”, and Walter Schloss and so on so forth.. In the end, I was surprised that I was surprised by his surprise!
I felt that he was skeptical about my direct answer. I had the impression that academics tend to focus so much on “managing risk” that when they are indeed right about something, they just put it down to “a standard case of over-confidence”, and therefore continue to avoid making any decision.

Several modern “portfolio theories” were also prevalent, and occasionally fashionable, in previous decades. Ignoring most of them and focusing only on the principles that I clearly understood was a key factor for my investment education.

The “Nebraskan Cradle” I got on board with mainly focuses on what businesses are worth.
The combination of art and science is what really suits me. Moreover, I still believe that it is a crucial building block when considering and evaluating stocks to allocate capital and to buy.
That brief conversation with the CFA professor came to my mind again recently when I sold the airline stock (for a substantial profit) I bought in April 2020. It was a year ago that Buffett sold the same airline. Warren and I clearly had two very different opinions about the situation. A perfect demonstration of my hypothesis for that professor in Warsaw; thanks to Warren, after many years of experience, I was able to disagree with Buffett himself, my personal hero and master! Moreover, I did the same thing with a well-known bank stock that Berkshire sold about a year ago or so.  At end of last summer, I started buying it quite aggressively at a certain price level. When the price went too high (from my “valuation standpoint”), I stopped buying.
So 60 years after it was written, Philip Fisher’s dedication in his second book, “Paths to Wealth through Common Stocks” still applies and is wonderful: “This book is dedicated to all investors, large and small, who do not adhere to the philosophy: Everyone seems to believe it so it must be so.”
 
In life, solitude can be a demanding companion, but in the investment world, it can be a blessing.

If you think that being a professional investor is like any other job, switch to something else. If you are gifted at evaluating businesses, you don’t need advisers or consulting specialists, you just need a quiet room.

“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.

 

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Last posts

“Everyone seems to believe it..”

Be like Buffett
A few years ago, when I was in Warsaw for my CFA level I preparation course, an “academician” (professor) knowing my passion for Warren Buffett asked me: “So what do you do? Do you “copycat” what he buys, strictly following his ‘moves'(investments), and his portfolio?” I said “No, of course not! One of the first things he taught me was to think for myself”. “This is not a business in which you ask opinions or take polls. You focus on facts. This is a business in which you think!” I was surprised that he was surprised by my answer, but then I thought about the “Super Investor of Graham and Doddsville”, and Walter Schloss and so on so forth.. In the end, I was surprised that I was surprised by his surprise!
I felt that he was skeptical about my direct answer. I had the impression that academics tend to focus so much on “managing risk” that when they are indeed right about something, they just put it down to “a standard case of over-confidence”, and therefore continue to avoid making any decision.

Several modern “portfolio theories” were also prevalent, and occasionally fashionable, in previous decades. Ignoring most of them and focusing only on the principles that I clearly understood was a key factor for my investment education.

The “Nebraskan Cradle” I got on board with mainly focuses on what businesses are worth.
The combination of art and science is what really suits me. Moreover, I still believe that it is a crucial building block when considering and evaluating stocks to allocate capital and to buy.
That brief conversation with the CFA professor came to my mind again recently when I sold the airline stock (for a substantial profit) I bought in April 2020. It was a year ago that Buffett sold the same airline. Warren and I clearly had two very different opinions about the situation. A perfect demonstration of my hypothesis for that professor in Warsaw; thanks to Warren, after many years of experience, I was able to disagree with Buffett himself, my personal hero and master! Moreover, I did the same thing with a well-known bank stock that Berkshire sold about a year ago or so.  At end of last summer, I started buying it quite aggressively at a certain price level. When the price went too high (from my “valuation standpoint”), I stopped buying.
So 60 years after it was written, Philip Fisher’s dedication in his second book, “Paths to Wealth through Common Stocks” still applies and is wonderful: “This book is dedicated to all investors, large and small, who do not adhere to the philosophy: Everyone seems to believe it so it must be so.”
 
In life, solitude can be a demanding companion, but in the investment world, it can be a blessing.

If you think that being a professional investor is like any other job, switch to something else. If you are gifted at evaluating businesses, you don’t need advisers or consulting specialists, you just need a quiet room.

“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.