Warren Buffet, the CEO and chairman of Berkshire Hathaway, shares some interesting insights from his life in an extensive conversation with Charlie Rose. Here are some of the excerpts from the interview.
- Starting off the conversation, Buffett mentions that he still tap dances to work. He states that being able to do what you love and choosing who you can work with is everything. "Choosing what you do and who you do it with."
- Talking about a typical day, Buffett says that he usually wakes up a few minutes before 7 o'clock to catch the news. He chuckles, "I am on the clock at Berkshire all the time."
- "When I was 11, I picked stocks. I read books on technical analysis. The first eight years I thought I was supposed to predict what the stock would do. After I read Ben Graham, I realised I was doing it wrong. I never bought another stock, I bought businesses that happened to be publicly traded."
- People often referred to Warren Buffett as a 'genius.' To this, Buffett responds, "I'm a bright guy who's terribly interested in what he does, so I've spent a lifetime doing it. I've surrounded myself with people that bring out the best in me - and you don't need to be a genius in what I do. That's the good thing about it. If I went into physics or a whole lot of other stuff, I'd be an also-ran. But I am in a game that you don't need - you probably need 120 points of IQ. But 170 doesn't do any better than 120. It may do worse - probably do worse. But you don't really need brains."
- Buffett believes that "You need the right orientation. 90 per cent of the people that buy stocks don't think of them the right way. They hope it goes up next week. When it goes down they feel worse, I feel better. I think about if the companies are worth 10 to 20 years from now."
- "Good to have a competitive spirit, but what you are competitive about matters. If I'm competitive in chess or football, then it probably wouldn't turn out very well. It's important to be competitive in games where you can win."
- When talking about making a big investment and things to know, he states "I need to know that I think Berkshire Hathaway is gonna be worth more money."
- "There are decades where nothing happens; and there are weeks where decades happen. Once every 10 or 20 years, you get an incredible opportunity to buy great businesses."
- Warren Buffett believes that you should "Hang out with people better than you are. Pulls you in the right direction."
- "A great manager should have ability, trust and character. Same thing applies for choosing a spouse."
Words of wisdom and experience
Learnings from Warren Buffett's 2021 letter to shareholders
Watch the full interview here.