July 8, 2005

Buffett's speech to students at univ of Florida

A free link to the video was posted at www.fool.com by a board member. i have put the link below

several very interesting comments by buffett

1. why smart people do dumb things - buffett discussed about the LTCM episode. how a bunch of very smart people with very high IQ and knowledge, managed to blow up everything they had. i like the statement - 'why risk what you have and need for what you dont have and dont need' ? i think this statement is very important to an investor. just think about it ...if i am well off , why do i need to risk my networth for a few extra percentage points and if i am poor , i cannot afford to do it. i guess it makes sense to invest conservatively (in companies with strong competitive advantage )

2. buffett discusses at length the economics of coke / see's and p&g. this was in response to a question on what is it he looks in a business. buffett discusses in detail about the what qualitative factors one should look for in a business. One new point which struck me and kept me thinking is buffetts reference to the pricing power of a company. companies with strong pricing power like coke tend to have a very formidable competitive advantage. in comparison commodity companies have poor or no pricing power (except during supply shortage )

3. buffett also discussed about reit investment and how although the discount to book looks enticing , but is justified due to inability of such companies to move / sell the big amount of real estate on their books

4. buffett talks of various other topics (which he has repeated in several other forums) , like developing good habits (example of taking a 10 % option on your classmate ), not prediciting the market etc

5.buffett also talk of the 'important and knowable' v/s 'important and unknowable' , when some one asked his opinion on interest rates. he pointed out that is better to focus on the first and get into good companies than worry about the second and let go of opportunities.

a very good speech and worth the 1.5 hours (in addition it is free)


Anonymous said...

URL doesn't seem to link to Video - do you have another / how else to get it?

Rohit said...

the link would take you to the AOL page. There is another link on the page which you should click. In addition, ensure that your pop up blockers are off as this video opens as a pop up

Anonymous said...

Thanks for the response - but the pop-up (from the AOL page) only shows the "Business & Accounting Instructors at the University of Florida" ... any other ideas?

Anonymous said...

Whoops ... sorry ... my mistake - it was a pop-up problem (there were 2 pop-ups - one showed & the other was blocked).
Thanks for the help.


Shai Dardashti said...

Excellent blog!

I posted the full audio of the speech on my website (in MP3 format - so can listen on an iPod or in the car)

The audio file (created with Buffett's permission) is posted at:

Best regards,
Shai Dardashti
Philadelphia, Pennsylvania, USA

Editor, Shai Dardashti on Grahamian Value