巴菲特的演讲（Buffett's speech）

1、巴菲特的演讲（Buffetts speech）Buffetts speech at the University of Florida Business SchoolAuthor: Warren Buffet | translator: easy Xiaolan translator:The translation here is not an article, but a Video. To be exact, Warrent Buffet (Buffett) at University ofA speech at the Florida business school. In his sp

2、eech, Buffett talked about investing and talking about life, which made translators benefit a lot. Turn it out here to attract readers.It was a 1.5 hour speech and it really took a lot of work to turn it out. It is hard to do it overnight, but Im afraid Ill have to serialize it here. Forgive me.(I)I

3、 want to talk about a few minutes and then I mainly to cliches, take your questions. What I want to talk about is what you think. I encourage you to give me a problem, you can speak freely. I want you to throw up some difficult balls, and if you give me a bit of speed, Ill be more interested. You ca

4、n ask almost any questions, except for last weeks TexasA&Ms college football game, thats beyond my limit. Weve got a few SunTrust here. I just finished CocaColas stockholders meeting: Warren Buffets investment firm is CocaOne of Colas long-term major shareholders, I sat on Jimmy Williams Ben. Jimmy

5、led SunTrust for many years. Jimmy must let me put on this SunTrust T shirt and come here. I always try to make the old Golf Federation to my sponsors, but failed. I didnt think I was in SunTrust, but I did a good job. Jimmy said, based on the growth of SunTrust deposits, I will get a certain percen

6、tage of the reward. So I was up SunTrust. (Buffett is joking.)I just want to talk to the students for a minute about your future after you leave school. You have learned a lot of knowledge of the investment here, you learn how to do things, you have enough IQ to do, you have the power and energy to

7、do, otherwise you wouldnt be here. Many of you will finally realize your ideals. But beyond intelligence and energy, theres more to decide if youre successful, and I want to talk about those things. Actually, in our Omaha, BerkshireHathaway company headquarters) a gentleman said that when he hired p

8、eople, he would look at three aspects: integrity, intelligence, and energy. Hiring a man with intelligence and energy without integrity will ruin the hired man. A man without integrity, you can only hope that he is stupid and lazy, not smart and energetic. I want to talk about the first point, becau

9、se I know you both have the last two points.In considering this question, please join me in this game. You are now in MBA for second years, so you should know all about your classmates. Now I give you one to buy 10% of one of your classmates right until the end of his life. You cant choose those who

10、 have rich fathers. Everyones efforts depend on his own efforts. Ill give you an hour to think about this question, which student would you like to buy for 10% of the rest of your life?. Would you give them an IQ test and pick the one with the highest IQ value? I suspect it! Will you pick the best o

11、ne? I doubt it, too. You dont necessarily choose the most energetic one, because youre already motivated. You might be looking for quality factors, because everyone here has a lot of brainsAfter an hour of thinking, when you bet, you may choose the person you most identify with, the person with the

12、most leadership ability, the one who realizes the benefit of others, the generosity, the honesty,Even his own ideas will give credit to others. All these qualities, you can write down the qualities you admire. (whom would you choose) the person you admire most?.Then, I am here to give you a Ban. Whe

13、n you buy 10% of your classmates, you have to sell another 10%. Isnt that interesting? Who do you think Im selling? You might still not find IQLowest. You may choose the classmate that annoys you, and the qualities that make you dislike it. The one you dont want to deal with, and someone else who do

14、esnt want to deal with it. What qualities have led to that? You can think of a bunch of things, such as dishonesty, love, petty, and so on. You can write them down in the right column of the paper. When you look at the left and right columns of the paper, youll find something interesting.Whether the

15、 football thrown 60 yards is not important, whether it can run 100 yards in 9 seconds in 3 days is not important, it is the best looking person in the class. What really matters is the quality of those on the left column of the paper. You can have all those qualities if you want. The qualities of ac

16、tion, temper, and character are all possible. They are not beyond the reach of each of us present. Look at all those qualities you hate in the right column. None of them is what you have to ask for.You can get rid of it if you have one. At your age, its much easier to change than at my age, because

17、most of these behaviors are gradually fixed. It is said that the chains of habit are so light that they cannot be felt. Once you feel it, it is too heavy to be removed. I think its quite right. Ive seen a lot of my age, or 10 younger than mePeople 20 years of age have self destructive habits and are

18、 unable to extricate themselves. They hate people wherever they go. They dont need that, but theyre hopeless.However, at your age, any habit and mode of conduct can be, and as long as you wish, it is only a matter of choice. Like Benjamin Gram (a famous financier mid last century), when he was a tee

19、nager, he looks at those respectable, he wanted me to be a respected person, why I dont like those people do? He found it impossible to do that. He rejected the unpleasant qualities in the opposite way. So I said, if you put those qualities all down, ponder, follow, you will be the one you want to b

20、uy 10% people! Better yet, you own 100% of yourself. Thats what Im going to talk about today.Now lets start by talking about what youre interested in. We can start with hands raised from here or there.(two)Question: what do you think of Japan?Buffett: Im not too macro. Now, 10 years of interest on l

21、oans in Japan is only 1%. I said to myself, 45 years ago, I went to Benjamin. Grams course, then I have been diligent, hard work, maybe I should earn more than 1%? It doesnt seem impossible.I dont want to be involved in any risk of currency fluctuations, so I would choose assets based on yen, such a

22、s real estate or business, that must be domestic. The only thing I need to do is to make more than 1%, because thats the cost of my money. But until now, I havent found a business that I can invest in.Its really interesting. Japanese companies have very low asset returns. They have a few businesses

23、that will have 4%, 5%, or 6% returns. If Japanese companies do not make much money themselves, then their asset investors can hardly get good returns. Of course, some people make money, too.I have a friend who worked for Benjamin Gram for the same period. That was the first time I bought stocks, loo

24、king for companies that had a lower stock price than liquid capital, a very cheap but a little quality company.I call it the cigar butt approach to investing. You are everywhere to seek the cigar, finally you find a wet, a hate cigarette smoke pot can look. That one is free. You pick it up, take the

25、 last bite, then throw it, and then find the next one. It doesnt sound elegant at all, but if youre looking for a free cigar, its worth it.Dont make the low rate of return business. Time is a friend in business, but enemy in bad business. If you get stuck in a bad business for too long, your results

26、 will be bad, even if your buying price is very cheap.If youre in a good business, even if you start paying a little extra cost, if you do it long enough, your returns will be considerable. I dont find any good business from Japan now. It is also possible that Japanese culture will make some changes

27、, for example, their management may be more responsible for the companys stock, so that the return rate will be higher. But now, all I see is some of the low rate of return, even when the high-speed development of the Japanese economy. Its also surprising, because a big, perfect market in Japan does

28、nt produce good, high returns. Japans excellence is only in the aggregate economy, not in the quality of the company. This problem has caused trouble for japan. We havent had much interest in Japan so far. As long as the interest rate is 1%, we will continue to take a wait-and-see attitude.Question:

29、 rumor has it that you have become a buyer of the long term fund management fund? What did you do there? What opportunities did you see?Buffett: in a recent article on Fortune magazine (cover Reuben Murdoch), it tells the whole story. I little interesting。 Its a long story, and Im not going to intro

30、duce the ins and outs here. I received a very cautious call about the long term fund management fund. It was a Friday afternoon. My granddaughters birthday Party at that evening. On the evening after that, I would fly to Seattle for a private tour of Bill Gatess 12 day trip to Alaska. So I didnt hav

31、e any preparation at that time. So I answered the call on Friday, and the whole thing got serious.Before the wealth article was published, I made some other related calls. I know them, and some of them I know well. Many people have worked for Solomon brothers. Things are critical. The Fed sent peopl

32、e off on the weekend. (New York). On Friday to the following Wednesday, the New York Reserve Board directed the redemption of a long-term fund management fund without federal funds.Im very active. But I was in bad health, because we were sailing in some canyons in Alaska, and I had no interest in th

33、ose canyons. The captain said that we can see sailing towards the polar bear, I can tell the captain toward stability to receive satellite signals in the direction of navigation (it is important) (translators note: Buffett is joking, meant he was in the boat, but has been the heart of the work at ha

34、nd). On Wednesday morning, we made an offer. At that time, I have been in the Montana (translators note: a state in the northwestern United States). I spoke to the head of the New York reserve board. They will meet with a group of bankers at 10. I communicated my intentions. The New York reserve off

35、ice called me before 10 in Wyoming, a state in the northwest United states. We made an offer. Thats really just a rough offer, because Im on the remote. Final，We made an offer for $250 million in net assets, but we would add about 30 to 3 billion 250 million on that amount. BerkshireHathaway (Buffet

36、ts investment company) is divided into 3 billion, AIG has 7 hundred million, GoldmanSachs has 3 hundred million. We have handed in the bidding, but our bidding time is very short, because you can not for the millions of dollars worth of securities a fixed price for a long time, I also worry about ou

37、r quotation will be used to wait for the right price to sell. Finally, the bankers settled the contract. It was an interesting time.Throughout the history of the long term fund management fund, I do not know how well you are familiar with it. If you take those 16 people like John, Meriwether, EricRo

38、senfeld, Larry, Hilibrand, Greg, Hawkins, VictorHaghani also has two Nobel prize winners in economics, Myron, Scholes and RobertMerton, together, may be hard to find from any company you can imagine, including a company like Microsoft, to find another 16 teams of such high IQ.Its really a team with

39、incredible intelligence, and they all have a lot of experience in the industry. Theyre not a bunch of guys making money in mens clothing, and then suddenly switching to securities. The experience of the 16 together may be between 350 and 400 years, and they have been specialized in what they are doi

40、ng. Third factors, all of them in the financial sector have a great relationship network, hundreds of millions of funds from the network, is actually their own funds. Super intelligence, in their field of expertise, is the result of their bankruptcy. This, for me, is absolutely puzzling.If I want to

41、 write a book, the title is why do smart people net. My partner said the book was his Autobiography (laughs). Its really a perfect demonstration. As far as Im concerned, I dont have any holidays with those 16. Theyre all decent people. I respect them, and Ill ask them to help me out when Im having t

42、rouble with myself. They are not bad men. But in order to make money that is not theirs and they do not need, they risk it with the money that belongs to them and what they need. Thats stupid. This is not IQ, no IQ problem. To win something isnt important to you with the adventure of whats important

43、 to you, simply unpredictable, even if your probability of success is 100 than 1, 1000 or 1.If you give me a gun, which is in the one thousand or one million position, then you tell me there is only one bullet, you ask me, how much money to spend, can let me pull the trigger. Im not going to do it.

44、You can take any note, and even if I win, the money is not worth mentioning to me. If I lose, the consequences are obvious.I have no interest in such games. However, because the brain is not clear, there are always people who make such mistakes. Such a general book has a very good title, only once i

45、n a lifetime. Thats correct, isnt it? If you start at one hundred million, you can earn 10% and have some risk each year without a little risk, but 99% of the success rate will be 20%. At the end of the year, you may have 1.1 million or 1.2 million. Whats the difference? If you die at this time, the

46、 person who wrote the news may have mistaken your 1.2 million words into 1.1 billions, and the difference makes no difference (laughs). There is no difference to you, to your family, to anything. But if there is little mistakes, especially when you are managing other peoples money, you just lost you

47、r money, your friends money, and your dignity and face. What I cant understand is, how can these 16 highly intelligent people play such a game?. Thats crazy. To some extent,Their decisions are basically dependent on a few things. They all have the background of the Solomon brothers company, and they

48、 say a 6 or 7 sigma event (the volatility of the financial market) is hurting them.They are wrong. History does not tell you the probability of a financial event in the future. They rely heavily on mathematical statistics, and they think that the historical data on stocks reveal the risk of stocks.

49、I dont think the data will tell you the risk of stocks at all! I dont think the data will reveal your risk of bankruptcy. Maybe they think so now? As a matter of fact, I dont want to use them as an example at all, because their experiences change in a way that will probably happen to everyone of us.

50、We have blind spots in certain key places because we know too many other places. Just like HenryGutman said, bankruptcy is two kinds: one is a knowledgeable person is utterly ignorant of them. This is actually sad. We never borrow money, even if we have insurance. I never lend money even when I only

51、 have 10 thousand dollars. Whats the difference between borrowing money? Im only happy when Im on my own. Ten thousand, one million, and ten million dont make any difference to me. Of course, there are exceptions when I come across something like an emergency medical treatment. Basically, I do the s

52、ame thing with more money and less money. If you are from the perspective of life style to think about the difference between me and you, we are wearing the same clothes, of course I was given by SunTrust; we have the opportunity to drink fountain (God spoke, Buffett opened a bottle of cola), we all

53、 go to McDonalds, a good point, cheese the queen (translators note: DairyQueen, similar to a McDonalds fast-food restaurant), we all live in the cool of the house, we see Nebraska and Texas in the plane on TVA&M (two American University) football game, our life is not what is different, you can get

54、a good health, I like, the only difference is that we can travel in different ways, I have a private plane to travel around the world, I am very lucky. But in addition to this, you have to think about what I can do. What cant you do?I love my job, but Ive always been, whether Im talking about big co

55、ntracts or just making one thousand bucks. I hope you love your job, too. If you are always looking for a resume to do something that you dont like, I think your mind must be in the water. I met a 28 year old Harvard graduate who has been doing well. I asked him, what are you going to do next? He sa

56、id, MBA can read it, and then go to a large company management consulting, look good on my resume.I said, wait a minute, youre only 28 years old, you do so many things, your resume than I have ever seen ten times stronger, you will have to find a job you dont love now, dont you think it is like putt

57、ing your life down to old age? It is time, you have to do (not wait). (this is a metaphor.) but I think I told him about my position.When you go out, you should choose what you love, not what your resume looks like. Of course, your hobbies may change. (for jobs you love), you get up every morning. W

58、hen I stepped out of the campus, I wanted to do Gram right away. But it is not possible for him in vain, so he said I want to pay too high (so he didnt want me). But I kept bug him and I sold myself for 3 years, writing letters to him during the period, talking about my thoughts, and eventually he took me. I worked for him for a few years. Those years are very useful experiences. I always do what I love.Put aside other factors,If youre just happy to do a job, then thats what you should do. Youll learn a lot, and youll find it fun to work. Maybe you