Warren Buffet | Learn To Build Wealth - Billionaire Wisdom

[Music] being successful almost anything means having a passion for it if you see somebody with even reasonable intelligence and a terrific passion for what they do and who can get people around them to March even when those people can't see over the top of the next hill things are gonna happen I mean I buy anything I want basically but I can't buy time and so to have time is the most precious thing you can have it I better be careful with it okay there's no way I will be able to buy more time and living in Omaha makes that easy that makes it a lot easier I purchased the whatever things well then for four years I've spent five minutes going each way now just imagine that was a half an hour each way I know the words to a lot more songs it really has no if you're doing an hour a day difference coming and going and you know yes that's two and a half percent of the person's work week that means 40 here's you're talking about a year what brings you the most satisfaction beyond family well most satisfaction is just staying in good health so you're in good health oh yeah I mean I enjoy every day I enjoy and what is it that you enjoy well I enjoy running Berkshire something if you get right down into my psyche I mean ya know it's it's you know it it's been my painting for 50 some years I get to paint what I want I don't have to I don't have to do you know follow what Wall Street is telling me to do in that quarter or something like I got so I own the brush I own the canvas and the campus is unlimited and that's a it's a pretty nice game and I get to do it every day with people I like I don't have to I don't have to associate with anyone that causes my stomach to churn you know if I were in politics I'd have to smile a lot of people that want to hear to them it's really I've got a good deal I often repeated the story brookhouser one say to me I spent too much of my life worrying about what people thought of me and then I only care about what I think of them people that I like yeah and my business is I'm lucky that way I mean this business is so much easier than philanthropy fly to be maybe a whole lot more important but in business you're looking for kind of easy choices you're looking for people that you can that you like to associate with and I mean you're to an extent I can create the world around by saying I mean if somebody walked in your door and they offer they want you to buy their company and you saw it as a golden golden goes from I with a farmer I would say no you'd say no but you know you knew it would Charlie marrying for money is probably a bad idea under any circumstances but if you're already rich it does not make any sense at all you believe in America absolutely you know you have said to me more than once I would give up a year of my life just to know what the next fifty is gonna be like yeah even like for now I mean why'd you pick for number that came to me it's just fascinating what's happened just in my lifetime you know 86 years I I should mention one thing about reading it was at the library here at Columbia I wish I spent probably more time than any other soon I lived there particle II but then I pulled the book out there happen to be who's an American that told me something about my professor Benjamin Graham and then I looked up and I went to the library and I said I want to learn more about this because I learned this over here that changed my whole life you know we owned I go now because of that library and directing me does some other book and then following through on that it's the chance I read about one-fifth the pace the bill does but I still spend five or six hours a day reading I mean it just you can learn so much I particularly love biography just you know to be able to live the lives of these people have been extorted see them so extraordinary the lessons and those you know the discouragements they face just everything about it so I did you can't get enough of reading that and I read the book when I was 19 called the intelligent Guster and I had been interested in investments since I was maybe seven or eight but I'd never and I'd read every book in the public public library why do you think you were interested in investing when you were seven or eight because I was too dumb to get interested in for my dad my dad had a very small investment firm and I was just gonna read all the books that he had there waiting to go to lunch or whatever it might be and then I went to the public library metal ball and it just was a fascinating subject to me and and but I didn't have any I I knew but everybody thought all of that at an early age but the gram won't made sense to investing per se did is there something about your core competence that made investing the perfect place for you to be yeah it was a question going out all the other allocation I was actually wired in a way that was this would be something I would be good at what so what wired in what way I I can't tell you precisely but I I've got the right temperament for it which is more important than IQ if you've got more than a hundred and twenty points of IQ so sell the rest of it somebody else you don't need it investments but you do need the right temperament you do it you do have to be able to think for yourself and getting back to you know the earlier question the first question I asked myself when I look at the businesses you know is it important and easy what I can determine about this business and a lot of them don't make it now bill is looking for hard questions that that plagued society and were intellect and money may make a difference they may not for a while and but he's taking on the tough things I think my job is to find easy things I'm looking for one-foot bars to step over you know rather than 8-foot bars to jump over and but that's not irrational if you're if you're looking at the investment universe but reading is key it on the biography on the unabled thing I does you can learn so much my partner Charlie Munger just loves Ben Franklin you know I mean he I mean you know it you can learn from other people and their mistakes and I find biographies might Warren you have often said you still tap dance to work out of here you can paint with your own colors yeah I I get I'm as excited about tomorrow in terms of what is gonna happen as I was when I started I was having a lot of fun when I started but I'm having just as much fun now and I was well I was here at Columbia I had this terrible third it was impossible for me to speak in public I mean I wasn't able to do it I actually read an ad in Newark times I went down to midtown signed up for a course gave the guy had checked and then stopped payment on the check I mean it just I just petrified but finally I and actually after you get through here hearing me today maybe you'll wish I'd stayed afraid of public speaking but that's another question then when I got out too although I finally decided just had to do it so I gave a guy a hundred dollars in cash and once I part of another dollars in cash I I jump off the Grand Canyon to get my money's worth so but a change it changed my life but I would say this don't fear failure almost everything that's turned out I got turned on by Harvard do the best thing ever happened among others some good things that happened it seemed good at the time don't worry about and don't don't let it eat as you look back just keep going because you're gonna have some things and forget them go forward I want to go to the back of the room right back there whatever number three is hi my name is Matthew man I'm a first year at Columbia Business School both of you had a moment where you went out on your own and I guess my question would be if you were to do it all over again you're in our shoes what industry would that be in where would you start your own business today I did the same thing yeah one thing I've been failure than anything else probably no I mean I've had I had fun one is it my 20s my 30s now I'm 86 I'm having fun and so I I advise students as much as possible look for the job that you would take if you didn't need a job I mean you know don't sleepwalk through life and don't don't say it's all gonna be great you know I'll do this and I'll do that you know I'm just marking time to get to be older that I've told people that's like saving up sex for your old age I mean it just is not a it's not a good idea yeah what are you urging them to do just yeah you really want to be doing what you love doing and you can't necessarily find it on your first job right but don't give up before you find it the difference between now and 60 or 70 years ago in the ability of really bright people really innovative really energetic people to get financed to do the things is it's just dramatically better than than it was at that time so now if you've got good ideas and there's good ideas right in this crowd and you've got energy it's far easier to get financed to move forward those ideas then you couldn't 50 or 60 years is that because of the internet Oh crowdsourcing of what is it just lots more capital all around and people more optimistic about people very optimistic but better ways to connect the capital and its dramatic many industrial based communities have been severely affected with higher levels of unemployment due to the increasing utilization of automation which ends up displacing workers what do you believe it what do you believe is a possible solution to unemployment or rising from automation how technology and the impact technology is having on jobs and the demand for new kinds of skills yeah we were here at 1800 and conducting this and somebody would point out that eventually tractors would come along and and better fertilizer and and that 80% of the people are now employed on the farm and in a couple hundred years it's going to be two or three percent and what are we gonna do with all these people well the answer is we release them we Keynes wrote something about it in something called essays on persuasion he wrote in 1930 about what a more prosperous society would become like and he actually postulated that in a hundred years and we're now eighty-seven years looking though that there would be four to eight times as much output per capita and you know he's remarkable but he didn't quite get how it might get distributed but the idea of more output per capita which is what the progress is made on productivity that that should be a harmful decide is crazy I mean the distribution may be a problem but if one person could push a button and turn out everything we turn out now is that good for the world or bad for the world you know you'd have to figure out how to distribute it but but you'd free up all kinds of possibilities for everything else so you every everything should be devoted initially to getting greater productivity but people who fall by the wayside through no fault of their own as the goose lays more golden age should still get a chance to participate in that prosperity and that's where government comes in whether you're gonna make an investment in a company or whether you gonna buy the company and what are the factors that you have to be that you're looking for a test I'm looking for durable competitive advantage I'm looking for something that has a moat around it for a considerable period of time and I'm looking for an honest and able management Toronto because I don't know how to run it myself and I'm looking for a purchase price that's not excessive but it's better to pay a little too much for something that's a very good business than it is to buy some Arkan but really got company but not much of a future and I don't know I don't have a ability to predict with a higher high probability of success the future of most companies so I'm looking for the exception but the nice thing is if there's thousands of companies out there I really only have to be right on a couple I mean it's exactly the opposite of a baseball where you have called strikes and the pitchers trying to throw it to it the worst part of the strike zone for you and if he succeeds in getting into that corner three times and you don't swing you're out and and investing it's a no it's a no cold strike things I can sit there all day and somebody conforming one company after another and finally I got one of my sweet spot both of you have chosen both wives and partners well Charlie Munger added what Charlie Munger changed my views every he'd be find them in a huge way in terms of looking for the quality companies and and and looking for the ability to make an investment that would work out well for five or ten or twenty years as opposed to something might there might be one I call it cigar butt investing where there was one puff left in the cigar butt the cigar was free so you picked up these disgusting looking things and got one puff out of him went on to another one and that worked okay but it was small-scale and it really doesn't build something satisfying so so he he kept forcing me in the direction of saying you know existed a really a business we want a home for forever and and we want to get a so it's like a marriage I mean you want to get associated with this person forever and it's a great way to look at things it's more fun with a partner I mean Charlie and I've had more fun working together then neither one of us would have that individually and we have never had an argument after working together for 58 you could talk every day not anymore because we know what the other guy's gonna say we just run well my own personal thought is that every life is of equal value in many ways in many ways if you have a limited number of dollars you actually can do more for more people outside the United States if we do have greater resources here for our 320 million people then exists around the world for 7 billion people so if you you can improve the lot of more people by intelligently spending a billion dollars or any other number in other areas of the world actually and then here and i know i coming from omaha and having the money i have people can say well why not spend it all in Omaha you know you go up here and almost done all kinds of things for you and I absolutely acknowledge that but in the end if I've got X dollars to spend I can make life better for more people if I can have it intelligently allocated in other parts of the world actually in the United States and that draws a fair amount of criticism but you know I live with it because it's what I believe all lives have equal value is really the driving force for me I mean I a foundation I'm an accident I won the ovarian artery when I was born in the United States in 1930 it was 40 to 1 against me I was male that now it's 80 to 1 against being a male in the United States in 1930 I was just plain lucky my life had been fun girl always said if I'd been born a long time ago I'd have been some animals lunch cuz I can't run fast and I can't climb trees and everything no and I'd be think I allocate capital it wouldn't work and I was lucky but a 79 out of the 80 weren't as lucky as I was at that time you go back 150 years people got wealthy by making some money from the first oil refinery or still a mill and building another one at Henry Ford with doable plan to build cars and then he it would be from actually from retained earnings which eventually turned into cash now you can get rich very young just by having an idea and you can get that idea monetized and capitalized in a way that you cannot believe so we are particularly interested in getting younger people interested in flying because they there will be huge there are huge fortunes by people that are now in their 20s and 30s and just think about those the potential for that group and so on this thing has worked out way way better including getting younger people to join us but are there any major life lessons that you two have learned through your personal experiences well it's a very important question and the more you will move in the direction of the people that you associate with so it's important associate with people that are better than yourself and actually the most important decision many of you make not all of you will be the spouse you're choosing and you really you want to associate with people who are the kind of person you'd like to be you'll move in that direction and the most important person by far in that respect is your spouse I can't overemphasize how important that is you're right they're the friends you have they will form you as you go through life and make some good friends keep them for the rest of your life but have them be people that you admire as well as Wykeham you have said to me about Suzy your late wife I was a mess until I met I think that's understanding well I was a very lopsided not well-adjusted person who happen to be very good one and and she put me together I mean that and it wasn't it wasn't overnight either I mean but she just had that little sprinkling can yeah you know and fire she saw he was coming together of opposites or no no I wouldn't say that we we have very similar valley we were in sync they in a very big way and and but I she was way more mature than I wish she was nineteen one got married I was 21 but I was I was about twelve emotionally and and she put me together and like I say it took time but that it changed my life I mean I wouldn't I would not have been a truffle anything like the life I that and what did Charlie Munger had well Charlie Munger is my partner of 57 or 58 years and and he's extremely wise he's a wonderful friend we've been partners that time and he's strong-minded I'm strong-minded we disagree sometimes we have never had an argument in that whole time and we never will and never had an argument I will I that's absolutely true you must disagree absolutely we disagree but so if you disagree how do you decide to well what he says at the end is when we disagree he says well Warren you'll end up agreeing with me because you're smart and I'm right off of these right to say that no I I respect his opinion enormous Lee whatever he gives it to babe respect girls opinions I mean it's but it's a it's more fun doing things with partners and I mean the most fun is obviously a marriage partner and that's the most important relationship but what having having a business partner if I'd done everything undone it wouldn't worked out this way but let's say I got double results been more fun doing it with Charlie are you interested in technology III I don't have enough I don't think I have a natural bent that way to start with and I'd be so far behind I never would catch up with people with that have been working on it and then they did it would not be a game I would be when I was a principal criteria for you understanding the business yeah I have to understand the business and there are lots of businesses that I don't understand some of them may be almost uh nerd understandable and others are just outside Maya's fear of confidence but you do have people now that that do have that kind of expertise who are there you have brought in I have two people who themselves have different circles of competence but they are chosen because they have a different circle learning there's a lot of overlap there's overlap between them and the important thing you know is not how it's nice to have a huge circle of competence much more important know where the word where the limits are of it I was genetically blessed with a certain wiring that's very useful in a highly developed market system where there's lots of chips on the table and you know I happen to be good at that game Ted Williams wrote a book called the science of hitting and entity had a picture of himself at bat and the strike zone broken into I think 77 squares and he said if he waited for the pitch that was really in a sweet spot he would bat 400 and if he had to swing at something on the lure corner he would probably bat 235 and an investing I'm in a know called strike business which is the best business you can be and I can look at a thousand different companies and I don't have to be right on every one of them or even 50 of them so I can pick the ball I want to hit and the trick in investing is just to sit there and watch pitch after pitch go by and wait for the one right in your sweet spot and the people are yelling swing you bum ignore them there's a temptation for people to act far too frequently and stocks simply because they're so liquid over the years you develop a lot of filters but I do know when I call my circle calm so I stay within that circle and I don't worry about things that are outside that circle defining what your game is where you're going to have an edge is enormous ly important [Music]

Channel: Thinking Humanity

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Keywords: motivation, mindset, wisdom, humanity, personal development, Warren Buffet, build wealth, billionaire wisdom, philanthropist, thinking humanity, law of attraction, life coaching, take action, motivation workout, motivational speech, success, investment, best motivation video, inspirational video, life motivation, retrain your mind, motivational speaker, Warren Buffett Investing Advice, 2017 motivational speech, genius billionaire investor, warren buffett advice

Id: G_zHRGHVIqo

Length: 22min 52sec (1372 seconds)

Published: Thu Sep 28 2017