| [Join YAPSS Membership, For Early Access to New Videos] https://www.youtube.com/channel/UCpzAAXa2cvyEnfc7rurcCcQ/join In this episode, Warren Buffett was asked for his advice regarding an approach to educate ourselves on investing with no formal education in accounting and finance. In this episode, you’ll learn: #WarrenBuffett #CharlieMunger #BerkshireHathaway [Transcript] AUDIENCE MEMBER 00:08 I just wanted to express our appreciation of — regarding all the operating businesses that we’ve visited. They’ve been very warm and hospitable. In fact, when we visited Executive Jets at the airport, the tour was so impressive my wife wanted to buy an airplane. WARREN BUFFETT 00:29 AUDIENCE MEMBER 00:30 CHARLIE MUNGER 00:32 AUDIENCE MEMBER 00:35 But you can thank the chairman for me next time you see him. Just kidding, but — My question regards, basically, approach to investing. I’ve been investing my own money in equities for about 10 years. And my results, overall, have been relatively good. In the process, however, I’ve taught myself some very painful and costly lessons. For instance, my first equity ever purchased was a share of Berkshire Hathaway for $5,500 in 1990 and I sold it 3 months later for something over $8,000 and congratulated myself for the rapid and shrewd profit. And earlier this year, I repurchased the same share for $70,000. And I intend to own it for the rest of my life. So you can see I’m growing. My question is, I have no formal education in accounting and finance. And I would just like some advice from you regarding an approach to educate myself and a reading list of basic texts, obviously, starting with the Berkshire Hathaway annual reports. Thank you. WARREN BUFFETT 01:46 They are here at five in the morning. They — I mean, they do a tremendous amount of work over this weekend. They’re cheerful. I’ve met with them all on Saturday at lunch and, I mean, they’re just one sensational group of people, and — You know, I’m very proud of them. And the managers should be very proud of the people they brought with us. And I hope you get a chance to thank as many of them as possible personally. Incidentally, at the See’s counter you’ll find Angelica Stoner, who’s been with us for 50 years and, you know — here she comes from California to help us out and sell peanut brittle, and she’s having a good time doing it. (Applause) And the question you ask is a very good one about — you know, in terms of accounting and finance — what’s the best way to teach yourself? I was always so interested in it from such a young age, that I — my approach was go to the Omaha — originally, was to go to the Omaha Public Library and just take out every book there was on the subject. And I learned a lot — (laughs) — I learned a lot that wasn’t true in the process, too. I got very interested in charting and all that sort of thing and buying stocks. But I did it by just a tremendous amount of reading, but it was easy for me because, you know, it was like going to baseball games or something of the sort. And in terms of naming specific texts in accounting, you know, I think you may want to read some of the better, even, magazine articles that have appeared. I mean, there’ve been – or newspaper articles. There have been some good commentary about accounting there. I don’t have — can you think, Charlie, of any specific texts or anything that we could recommend? CHARLIE MUNGER 03:53 WARREN BUFFETT 04:45 CHARLIE MUNGER 08:23 WARREN BUFFETT 08:44 CHARLIE MUNGER 09:30 WARREN BUFFETT 10:03 |
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