Warren Buffet

Warren Buffet Speaks

We’re not pure economic creatures, and that policy penalizes our results somewhat, but we prefer to operate that way in life. What’s the sense of becoming rich if you’re going to have a pattern of operation where you continually discard associations with people you like, admire and find interesting in order to earn a slightly bigger figure? We like big figures, but not to the exclusion of everything else.

You should have a knowledge of how business operates and the language of business (accounting), some enthusiasm for the subject, and the qualities of temperament which might be more important than IQ points. These will enable you to think independently and to avoid various forms of mass hysteria that infect the investment markets from time to time.

The most important thing in terms of your circle of competence is not how large the area of it is, but how well you’ve defined the perimeter. If you know where the edges are, you are way better off than somebody that’s got one that’s five times as large but they get very fuzzy about the edges.

That’s the way I feel about doing this job. Money is a by-product of doing something I like doing extremely well.

In looking for people to hire, you look for 3 qualities; integrity, intelligence and energy. And if they don’t have the first, the other 2 will kill you. You think about it, it’s true. If you hire someone without the first, you really want them to be dumb and lazy.

I want to be able to explain my mistakes. This mean I do only the things I completely understand.


~ by antinomian on December 22, 2007.

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