Lesson 1

Warren Buffett's Students

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Executive Summary

Aside from being an investor, and businessman and a financial advisor, Warren Buffett is also a teacher.

Buffett made many investing mistakes, but he learned from it, which made him an even more credible speaker of the topic. Before he became a professor, he took up a public speaking course in Carnegie which aided his fear.

Some of his students from 50 years ago still remember him and give awesome testimonies on how great he is. They said he is an honest person, so he doesn't give a good grade. He gives what the student deserves. He has potentials, and it makes him very intriguing. His company's asset, Berkshire Hathaway, shows it. $10,000 is required to invest in one share. Warren Buffett possesses phenomenal skills that helps him become who he is.

The secret to Buffett's investing success? Follow the basic philosophy from 60 years ago taught by Ben Graham: an investor gets to buy any business that has price changes everyday for irrational reasons.

Full Transcript

In Omaha resides the wealthiest man on planet - Warren Buffett. Unlike when he is in other parts of America, he does not spend his time making more money or creating connections when he is at his hometown. Instead, he spends free time with students. While he declines most offers to speak, he invites dozens of students to speak at Omaha each year.

Most people won't reveal their secret, but for Buffett, it's like a surgeon at a med school. If they didn't share their knowledge, how will the sick get well?

Buffett loves sharing his insights, but what he never shares is how much Berkshire Hathaway is worth. Here's all that he can share with regards to stocks: "Stocks represent a good investment. Compared to other choice, cash is a terrible investment. Playing riskily is not great.."

Buffett's long term value investing that he learned from Ben Graham is calm decision making especially when Mr. market panics. You can have an extra ordinary difference in a price level, because not only speculators and investors itself are looking at the situation. Studying under Graham shaped Buffett's professional life.

Buffett can't tell which stocks will go high or low the following week, but he can tell which companies will stay alive in the next 5 years. Buffett advances against the others because he looks at the growth potential plus he has the size and knowledge that can make the company grow.

He made investing mistakes, but Buffett's principles worked most of the time: understand the business, look for a competitive durable advantage, and manage with trustworthy people. He can go to sleep and still get benefits over a period of time.

With Buffett's experience, it makes him very credible to speak at universities. Before that, he feared public peaking so he took a course in Carnegie. After that, he started teaching in schools. He can explain the investment strategy that was very hard to understand! he simplified it!

Here are some of the testimonies from his students 50 years ago:

  • Buffett is an honest person, so he doesn't give a good grade. He gives what you deserve.

  • Teaching places Buffett in front of clients. He convinced some of them that he knew a lot more than them.

  • You are intrigued with what he can accomplish.

  • To invest with him, you need $10,000 and when you have the money, you have no control at it because he knows how to use it.

  • We thought we were learning, but you really haven't learned until you hear Warren Buffett teach about intelligent investing.

  • Buffett reminds students that they need to do belter than the wealthiest man did 50 years ago.

  • He has phenomenal skills that helps him become who he is.

  • In 2012, he talked to many different universities about investing. he talked to different students and you get a comfortable feeling when you talk with him. he has willingness to teach them with his experience.

    The secret? Follow the basic philosophy from 60 years ago taught by Ben Graham: an investor gets to buy any business that has price changes everyday for irrational reasons. Buffett is so transparent, but he never puts the glory in him. He discusses about complexities that even brought him to closer to the students the and the students closer to him. They realize Buffett is a lot like him in many ways, just that he is older.

    Buffett's lessons go beyond the market when he teaches. He found his passion when he was very young and so he encourages students to find their passion early. Starting early means reaching your dreams earlier.

    Although he has everything, Buffett is very confident about his values, but NOT proud. He just knows where he stands. He is programmed to make money, but not to keep the money. He knows he is for investing.

    Today, he inspires his students to make a difference now. It may be small, but it really is great and influential in the future.