The film tells about Buffett's life with the timeline as the main line interspersed with the two lines of life and career. The advantage of this method is that his life is very clear and organized, because all of our lives are composed of career and life. The two parts are composed together, and we cannot be complete by talking about any one part. After all, life and work are a relationship that affects and blends with each other. But I think it's better for us to know him separately.
Let's talk about life first. It is divided into two parts. His living habits and his family members have the greatest influence on him. First of all, there are four points in his way of life that are worth learning:
1. Reading and concentration
Like many other successful people, Buffett is also a person who likes to read, and still guarantees five or six hours of reading time a day. When he was a child, he liked to read more than his peers. The book that impressed him the most when he was a child was "The World Almanac World Yearbook", and even now he remembers that the book said that the population of Omaha in 1930 was 214,006; another book The most impressive book is "A Thousand Ways to Make a $1000 to Make $1000", which got him started to really calculate compound interest. And, when his peers are watching Playboy, he loves watching Moody's Manuals to find historically undervalued companies. The knowledge acquired during the reading process and the method of storing and organizing this knowledge are the most obvious benefits. In addition, reading is a good thing to practice concentration. In the "Silicon Valley Iron Man" that I just finished reading, I describe Musk's reading. He focused on the book when he was young, everything outside was automatically blocked, and this exercised his concentration very well. Only concentration can bring efficiency. Once Bill Gates' dad asked them to write down the word that helped them the most on a piece of paper, and they both wrote the word "focus" at the same time. In his later years, Buffett said that the most powerful part of his personality is -- focus, if he is interested in something, he will be really interested, read relevant materials and meet relevant people. This is really what it takes to be successful to focus on what you do, so practicing mindfulness is a must-have skill. In "The Great Learning", it is said that "after knowing stagnation, there will be tranquility, after tranquility, you will be able to remain calm, after tranquility, you will be able to think, and then you will be able to gain". Wisdom is your precious treasure.
2. Unique way of thinking
Use the three short stories in the film to understand how his way of thinking is different from that of most people. The so-called different talents are outstanding. This is the so-called lunatic and genius.
Story 1: At the beginning of the film, Buffett says that in high school he only had two things on his mind - girls and cars, like most people. But he is not good at flirting with girls, so he talks more about cars and cars. When you are asked to choose a car that you will drive your whole life, the first thing that comes to your mind is to cherish this car. He gave it to high school students. My advice is that no one can drive a car in a lifetime, the only thing that doesn't change in a lifetime is our body and brain. When he was a child, it was not like today's society. Everything was changed. At that time, everything could be used for a long time. If it is broken, it will continue to be used. It is similar to the early days of our nation, but he realized that To what really matters is yourself, and your biggest investment for early returns is investing in your own brain and body.
Story 2: Thomas Jefferson wrote in 1776 that "all men are created equal" (all men are created equal), and he strongly agreed, but it
was not until Lincoln issued the Emancipation Proclamation in 1862 that the black problem was not solved. Buffett realizes that apart from the unequal rights of blacks, women don't actually realize that they are also slaves of this world, because women's future is limited, they are more assistants who are given to help their husband's career, but through his sister and his wife, he can. It can be seen that many women have more perfect personalities and stronger abilities than men. But the reason for this is the cultural environment, not the lack of care for women. This way of looking at the problem is unique. In addition, he also thinks this status quo is exciting from the opposite point of view, because this country actually only uses half of its talents, and half of its talents are not used, you will find out how great the future potential is, so he Be optimistic about the future of the United States, and it is precisely because of the mistakes at the time that half of us can be invested in the future.
Story 3: Buffett's views on mistakes are different from ours. We avoid mistakes, he welcomes them. Mistakes are also welcome, because mistakes in the stock market have led to the undervaluation of some stocks, giving him the opportunity to buy stocks in value depressions, but time will eventually correct the mistakes and give him the opportunity to use them to make money, which half of the women do not. Invested in developing this error, he also knew that time would correct it.
These three short stories can see through the leopard that Buffett's way of thinking about problems is very different from ordinary people.
3. Suzy, his competitive
wife, has a disagreement with him on money. Susie thinks that money should be donated to charity, while Buffett believes that money is business. Susie said that Buffett's life is actually very frugal, and money is to him. It's also just mental, it's his scoreboard, it's the results that prove his victory, and he says everyone can read the books he's read, so it's a fair game. But in the end, under the influence of Susie, Buffett donated all his assets to Gates' foundation, but this competitive spirit drove him from a small stock trader all the way to become a world stock god. So the desire to
conquer and the will to be competitive are also indispensable for success
, chewing gum, newspapers and magazines, etc. In addition, he likes the feeling of being a Boss, because he can arrange the delivery route and control his own time. This dissatisfaction drove him to become the richest man in the world. The
second is the influence of family members on him. No matter how good a person is, he can't go far without leaving the team. This team is family. There are two family members. The most far-reaching influence is, of course, inseparable from close friends. Here we mainly talk about his father, his wife and the richest man and close friend Bill Gates.
Buffett's father, Howard Buffett, was also a stockbroker, and the biggest influence on him was to teach him integrity, tenacity and fortitude. His father told him "you have to know why you are doing what you are doing" and "all lives have equal value" were the most influential words, his father always taught him by living examples rather than by telling him , he thinks this way of education is particularly good. Buffett also said that his best gift is to have such a good father at birth, and this evaluation can fully show his love and respect for his father.
Buffett Wife
Another person who had a profound influence on him was his wife Susie. He said that there were two turning points in his life. The first time was when his mother was born in his arms and gave him life, and the second time was when he met Susie and let his Life is complete. They appreciate and understand each other. The relationship between the two is two separate individuals, two parallel lines. When one of them is open, the two will be connected. This is actually a good way for couples to get along. Although Susie is 2 years younger than Buffett, she takes special care of him in life. She takes good care of her clothing, food and daily life, so that Buffett's ability to live is particularly poor. For example, Susie was sick in bed and called Buffett to get a plate. , and he brought a colander after the kitchen crackled for a while. But I think the most important thing for a man is his appreciation and recognition. The appreciation is that Susie said that Buffett is a genius, and geniuses are lonely and independent, especially this kind of great success is always different from most people. , or strange, but she still thinks Buffett is an interesting person, a humorous person, she said "a humorous person has a moat around him because he doesn't know who he wants to get in", and even the way he speaks is deeply influenced by Buffett Now, the reviewers all quoted Buffett's most famous moat theory; the recognition of Buffett is that Susie said she wanted to marry a priest or other person who did something valuable and meaningful to mankind, but I found a meeting Buffett, who makes money, is opposite to her original intention, but she knows that Buffett can't be a better person. Susie said that she is the person who knows Buffett best, and said that many wives would say the same. I don't think there are many couples who can really understand each other from the heart. It is really a lucky thing to have such a wife who understands him and takes care of his Get out of the slump and create a virtuous wife of the Mercedes-Benz empire
Bill Gates and his wife
Then there is his close friend Bill Gates. The official version of their first meeting is that a friend of Buffett was the editor of the Washington Post, bought a house in Seattle and invited Buffett to be a guest, and then this friend met Gates. his mother, so we met together, and then his mother asked Bill Gates to meet Buffett, but Bill Gates refused to see any stock brokers, but during the bargaining process with his mother, Bill Gates agreed to meet for an hour, As a result, they chatted for 11 hours and have since become close friends 25 years apart. Once Gates' dad asked them to write down the word that helped them the most on a piece of paper, and they both wrote "focus" at the same time, and they had a lot in common. Later, under the influence of Susie, Buffett chose to donate his assets to Bill Gates' foundation.
In addition to life is career, career is actually where we pay most attention to Buffett. The business is actually Berkshire.
Berkshire Hathaway (Berkshire Hathaway) is a diversified holding company, with seventy or eighty different businesses under it, and they are all operated separately under the group. The career is also written in two parts, business philosophy and management methods. There are several key words in the business philosophy to explain
his philosophy and core ideas guidelines. 2. Compound interest One of Buffett's mantras is "Einstein said compound interest is the eighth wonder of the world", and the accompanying example is the story of the king rewarding a chessboard of wheat. Over the past 50 years (that is, after Buffett became chairman), the book value per share of the company's stock has grown from $19 to $146,186. The compound annual growth rate is 19.4%. This figure far outperformed the 9.9% compound annual growth rate of the S&P 500 during the same period. The company's Class A shares also rose to $221,180, with a compound annual growth rate of 21.6% in market value and a cumulative increase of 1,826,163% in 50 years! The best interpretation of the power of compound interest. 3. Value investing Ben Graham created "value investing", and value investing is Buffett's investment philosophy throughout his life. 4. Discarded Cigar Butt Theory
Buffett's early development was based on the "cigar head theory", which is the primary use of value investing. It is to buy a cigar that is about to be smoked. At this time, there are still people smoking. People who smoke make profits. To put it bluntly, they find companies with bad management and bad management, buy them at the lowest price possible, and then make money from the people who take over. This can make money but not a lot of money. Later, I met Charlie Munger and completely changed Buffett's investment method, becoming a good company at a reasonable price, and finally allowing Berkshire to expand exponentially without making other mistakes.
5. Moats
If you have an economic castle, people will come to occupy it and drive you away. At this time, you need a moat, and you need a knight, and know what the knight is doing. The best concept of a moat is the barrier formed by a brand or technology. The bigger the barrier, the wider the moat and the safer it is. Among Buffett’s many investments in his life, the most moat feature is Coca-Cola, which is also the love of his life, every day. Can't leave.
6. Circle of Competence
Ted Williams has written a book, "The Science of Hitting", which analyzes the location distribution of the sweet spot. Investing is similar to batting, but investing does not have such an accurate location distribution. The temptation for people to operate frequently in the stock market is simply because they are too easy to change, and gradually they need to cultivate the skills of filtering other information and form a circle of competence. Don’t worry about things outside the circle, understand what game you are playing, you Where there are advantages is very important. Buffett said that the trick to investing is to sit there and watch the court and wait for the ball in your best area. The most important thing to make money is time. You don't need to be super smart, just be patient.
7. Charlie Munger
The two have been working together for nearly 50 years, and they can really achieve the "golden marriage" of their business partners
This picture can reflect their close relationship
Steve Jobs co-founded Apple with his partner Steve Wozniak, and Bill Gates co-founded Microsoft with his partner Paul Allen. A great cause is inseparable from like-minded partners, and Buffett has a more persistent one. And harmonious soul partner - Charlie Munger. The two of them achieved and learned from each other. Munger helped Buffett transform into a good company with a reasonable price instead of a bad company with a cigar head, and made great contributions to Berkshire's business miracle. At the same time, they are also soul partners. Quarrel, they all know that each has their own moral standards, so they can do well. Charlie Munger himself is a world-class investment guru, and the complementarity of the two is also a story in the business world.
In terms of management, it is mainly his daily management of the company. First of all, he has a strong sense of risk. He bought the New York Times from the years of the Great Depression and the economic downturn in the United States and put it in the corridor of the company to always remind people what a real crisis will look like, and wake people up not to forget the crisis, the sense of crisis It is something that the financial industry must keep in mind at all times; secondly, he is very demanding of himself, Munger said, "A very important reason for Buffett's success is that he is always very cruel when evaluating his past, and he wants to be sure of the wrong. Think and avoid it in the future", Buffett himself said "If you have emotions in your investments, you will not do well, you have emotions in stocks, but stocks don't have emotions in you", while buying Berkshire Hathaway It was a decision made at that time because of emotions, otherwise there would not be a company with such a difficult name to remember; in the end, his team has strong management skills, they are a 25-person office, there is no committee, PR department, investor relations, etc. , everyone participates in entertainment activities and has fun together, and the turnover rate is extremely low. It is really a sample of a good team. For example, the picture below shows the uniform wearing the Cavaliers uniform to participate in the event (PS: I really hope that James will enter the seventh consecutive year this year.) NBA Finals and bring home a second championship trophy), and Berkshire is also a gathering place for long-term investors, unlike most investments are short-term speculation, which is also conducive to financial institutions to deploy long-term operations and investments.
The stock gods are not trained in a day, but also come out from ordinary people bit by bit. First, his education was not smooth sailing. He graduated from the University of Nebraska (a school that is not 985 or 211 in terms of domestic rankings), and then applied to Harvard Business School and was rejected (the richest man dropped out of school, the second richest was rejected. Refused, it seems that Harvard and Qian are really not close.) Later, I was fortunate to learn that Ben Graham and Dodd, the authors of the books he liked to read, were teaching at Columbia University. I wrote to them that I liked their books and wanted to study with them, so I was lucky enough to get into Columbia University; secondly, Buffett had a severe phobia of speaking and was very bad at speaking in public, and then he went to participate in Kanye Key's speech class changed his habit of not daring to speak. He didn't have an undergraduate degree from the University of Nebraska or a graduate degree from Columbia University in his office. The certificate of Dale Carnegie's speech class was released; thirdly, Buffett also had a period of confusion after graduation. When he returned to Omaha in 1956, he didn't know what to do for the first few months, and then he was in his family. The first partnership was established with the participation of . So as long as you focus on your efforts, the world will not treat anyone who works hard.
At the end of the film, just like Jack Welch's latest book "The Essence of Business", in addition to talking about business, the last part is about the meaning of life. Maybe people start thinking about things other than business when they reach a certain age. Many of the advice in this book is very useful to us, and Buffett, who is in his 80s, uses his life wisdom to say to us when he talks about death at the end of the film, "I'm not afraid of death, I already have a great life, but physically. , I have no value anymore, only a little residual value left, but it does not prevent me from working, does not prevent me from being happy, does not prevent me from thinking, I do not feel any reduction in my feelings and love for life, in fact, in In a sense, the game I'm in is becoming more and more interesting, and I'm enjoying it." To enjoy and feel life is what we need to do every moment. As for work, he said: "The world is a beautiful movie, but you won't sleepwalk all your life. The important thing is to find a job. If you don't do your job, the world will still be colorful. I I have been dancing and working for 60 years, because what I do is what I like.” The first thing for young people is to find something that you can dance and do, and then focus on it. Do it and you will reap the rewards of your life.
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