” Money to some extent ,sometimes lets you be in more interesting environments. But it can’t change how many people love you or how healthy you are.”
The truth is that excessively large mounts of money can actually create a deal of misery in your life. Your children wont work because they think they are going to inherit a fortune, which means that they never develop any of the self-esteem that work created, which means that they end up being bitter and spending their time wishing you an early demise. If you are insanely rich ,you may end up being surrounded by a bunch of sycophants who will fill your life with lies to stroke your illusion of grandeur till you look like a fool to the rest of the world .And instead of doing adventurous things with your money and life ,you end up spending all your time guarding your wealth from your servants ,lawyers,accountants,& so-called money managers, all of whom will assist you in making your money theirs.
Warren believes that children who inherit great wealth tend to do nothing with their lives, nor does he believe that it is good for society if there is an upper class created by inherited wealth. He believes that a country prospers better if society is a meritocracy, with people earning what they get .For this reason he donated the $32 billion fortune he made from investing to charity, so that it would go back to help the very society that created it let this noble thought find a place in the hearts of all who make their fortunes in the world.
With each investment you make you should have the courage and conviction to place at least 10% of your net worth in that stock.
Conviction is based on what you know will happen, faith is based on what you hope will happen.To make money in the investment game you need to have conviction,which means that you need to know what you are doing.A surefire way to achieve Warrens level of conviction is to invest significant amounts of money.Thiis causes you to focus and make certain that you have done your homework before you make your investment .But if your investment strategy is based on faith,then you really haven’t a prayer.
You should invest in a business that even a fool can run.because someday a fool will.
There are business with great underlying economics and business with poor underlying economics.You want to invest in companies with great underlying economics because it is hard to damage this kind of business.Companies in which Warren has invested ,such as CocaCola,Budweiser,Walmart,Wrigley’s,Hershey,and H&R Block, are almost dumbproof.You know you are going to make money with these business,even if a fool becomes a CEO.But if you have to worry about a fool running the business,then maybe it is’nt such a great business,and maybe you shouldn’t be in it.
If i cant make money in a $5 trillion U.S market ,it may be a little bit of wishful thinking to think that all i have to do is get a few thousand miles offshore and I’ll start showing my stuff.
The old thing about this quote is that ten years later Warren did go offshore to show his stuff.In 2003 he bought around $500 million worth of PetroChina,an oil company that is 90% owned by Chinese government,which means ,as Warren jokingly remarked , ‘Between the two of us we own the company’. PetroChina is the fourth most profitable oil company in the world.it produces a much crude as Exxon, and Warren bought it at one-third the valuation of Western oil companies.In case you are wondering ,it is up 400% since then.And if that’s not showing your stuff,I dont know what is.