Notes on Buffett’s Meeting with Ivey MBA Students on March 30, 2012

Notes on Buffett Lecture to Ivey School Students: Ivey School_2012_Buffett_Notes

Mr. Buffett will often repeat the same concepts and stories to the students. But let’s read what he has to say about certain subjects.

On Valuation: When valuing a business we should think of it as “deferring consumption and laying money out now to get more money back at a later date”–i.e., the two birds in the bush. There are two major questions to be answered: 1.¬†How much money will investors get back? and 2. When will they get it back?

What I seek is certainty about the pay-off, make sure there are two in the bush. The way I deal with certainty is to find companies that have historically great returns and earnings, leveraging on a competitive advantage.

Passion: My passion was valuation

Information: People have better information now, but they still react irrationally.

Advice:

  • Buy equities strategically and opportunistically.

  • But ultimately, the key to success is emotional stability.

  • Someone with intellectual curiosity can learn the profession.

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