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.
Buy equities strategically and opportunistically.
But ultimately, the key to success is emotional stability.
Someone with intellectual curiosity can learn the profession.