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