Importance of ROIC Part 3: Compounding and Reinvestment

Posted on 20 CommentsPosted in Education, Investment Philosophy, Investment Quotes

“We prefer businesses that drown in cash. An example of a different business is construction equipment. You work hard all year and there is your profit sitting in the yard. We avoid businesses like that. We prefer those that can write us a check at the end of the year.” -Charlie Munger, 2008 Berkshire Hathaway Annual Meeting I’m patiently looking for bargains everywhere. That’s the name of this game: “figuring out what something is worth and paying a lot less […]

Macroeconomics & NBA Free Agency: Important, but not Knowable

Posted on 7 CommentsPosted in General Thoughts, Warren Buffett

“I don’t think about the macro stuff. What you really want to do with investments, is think about what’s important and what’s knowable. Understanding Coke or Wrigley is knowable… but we have never bought a business or not bought a business because of any macro feeling of any kind… We don’t want to pass up the chance to do something intelligent because of some prediction about something that we’re no good at anyway.” – Warren Buffett, 1998 at the University […]

Buffett’s Early Investments

Posted on 23 CommentsPosted in Ben Graham, Case Studies, Investment Philosophy, Superinvestors, Warren Buffett

“The highest rates of return I’ve ever achieved were in the 1950’s. I killed the Dow. You ought to see the numbers. But I was investing peanuts then. It’s a huge structural advantage not to have a lot of money. I think I could make you 50% a year on $1 million. No, I know I could. I guarantee that.” – Warren Buffett, 1999 Most Buffett fans have seen that quote. I recently had a few questions and comments that […]