defining what your game is where you’re
going to have an edge is enormous ly
important
it takes three qualities essentially to
do well and extremely well actually in
this country to make $10 a week more
doing something that you don’t feel good
about compared to something you’d feel
good about yeah make the change need
motivation watch a top 10 went believe
nation what’s that belief nation it
seven I believe in you and this channel
is designed to be a part of your daily
success routine so let’s get your
motivation to attend and get you
believing in you grab a snack and chew
in today’s lessons from a man who went
from being interested in investing from
a young age and owning pinball machines
and delivering newspapers growing up to
becoming known as the wizard of Omaha
and being worth over 80 billion dollars
he is Warren Buffett and here’s my take
on his top 10 rules a success vol 4 also
if you want to know what Warren Buffett
and other successful entrepreneurs have
to say about building unstoppable
confidence check on my 250 for
confidence series where every day for
the next 254 days I will send you a
morning video for free to help you build
your confidence the link to join is in
the description below it’s important
associated with people who are better
okay let’s kick it off with rule number
one define your circle of competence Ted
Williams wrote a book called the science
of hitting and inanity at a picture of
himself at bat and the strike zone
broken into I think seventy-seven
squares and he said if he waited for the
pitch that was really the sweet spot he
would bat 400 and if he had to swing at
something on the lure corner he would
probably bad 235 and an investing I’m in
a know called strike business which is
the best business you can be in I can
look at a thousand different companies
and I don’t have to be right on every
one of them or even fifty of them so I
can pick the ball I want to hit and the
trick in investing is just to sit there
and watch you 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 common 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
rule number two do what you love I was
wondering how you define success
personally well I can certainly define
happiness because that’s what that’s
what I am I mean I I am and if that
I mean I get to do what I like to do
every single day of the year I get to do
it with people I like I get that I get
to I don’t have to associate with
anybody causes my stomach to churn and
the only thing I might get a job I don’t
like and this only happens about every
three or four years occasionally I have
to fire somebody and I don’t like that’s
the only thing other than I tap dance to
work and I get down there and I think
I’m supposed to lie on my back and paint
the ceiling you know or something I mean
yeah that’s where I feel and I’ve been
and it doesn’t diminish its it’s
tremendous fun so you know if they say
that success is getting what you want
and happiness is wanting what you get
well I don’t know which one applies in
this case but I I do know that I
wouldn’t be doing anything else
something that I do advise you you know
and when you go out to work go to go to
work for an organization that you admire
people you admire because it’ll it’ll
it’ll turn you on and and and you ought
to be happy where you are working and I
always worry about people who say you
know I’m gonna do this for ten years I
really don’t like it very well I’ll be
ten more years of this and resume I mean
that’s a little exciting up sex for your
not a very good idea so get right it you
got a recommend that get right into what
you enjoy
and you’ll be successful at it you ready
well I mean you won’t be able to miss
and you know that’s I don’t regard what
I do is the most important thing in the
world at all but it’s right for me I
mean I happen to be wired in a certain
way that what I do works in this if I
had to do what you know bill does I mean
last about ten minutes and let’s trip a
lot of things but I luckily I kind of
stumbled into the thing that I I do best
and and that you know that it’s worked
out boom rule number three turn a
failure into a plus how do you turn
failure into a plus and it’s true when I
was in university Nebraska one day I was
reading the daily Nebraskan and it said
in room 303 o’clock that will be this
panel of three professors here at the
University and they’re going to award
the Nathan gold scholarship I don’t know
whether you so you still have it around
and at the time it said it would give
you five hundred dollars to go to the
graduate school of your choice I don’t
know whether it’s changed in the
mountain but that that was it so I read
this and I went there to this room at
three o’clock that day or whatever it
was and I walked in the room and there
were the professors and I was the only
student that showed up I mean it really
got to him I mean they were stuck hey
you know I kept waiting and looking at
their watch you’re hoping there’ll be
more candidates but there no one came in
so I won $500 by default and
those are usually my biggest triumphs
what nobody else shows up and so here I
was I had $500 to go toward any it
wasn’t it was the limited as any any
graduate school for a master’s degree so
I applied to Harvard my dad wanted me to
and i shortly heard from harvard and
they said go to chicago and meet this
fellow running that who interviews
applicants from the midwest
so i got on the train and that’s what
you did in those days and i spent on 10
hours on the burlington going to chicago
then I transferred to another little
inner urban train to go up to this
country day school where this fellow was
the headmaster and he was the big
interviewer for Harvard and I got there
and after about 10 minutes he he said
better think about something else you
know he come back later on
I was I was 19 at the time and I looked
about 12 you know and and I and I acted
about 8 it was not a great combination
but so he said forget it
so I spent a little inner urban train
back to Chicago when I took the 10-hour
train back to Omaha all the time hanging
what do I tell my parents you know it’s
kind of embarrassing but it was it was
the luckiest thing ever happened to me
because if I’d gone to Harvard I would
have gone to a 2-year business school
iin stead applied to Columbia where I
could graduate in one year and get a
masters degree luckily that by the
accident of it and being in the Nebraska
National Guard which did not get called
up for the Korean War I missed going in
the Korean War I I got to meet Ben
Graham and we had an enormous effect on
me subsequently and I probably got my
wife that way because she was going to
Northwestern and I was able to put on
sort of a full-court press because I got
out in one year and otherwise she’d
she’d have met some other guy I mean I
got her before the competition showed up
and so it worked out wonderfully it
couldn’t work
got better and that’s been that’s been
my life basically I mean it the things
you know you will get some
disappointments you know but the future
is what counts if I knew every decision
I was going to make was going to be
perfect it would not be as much fun he
liked playing golf and knowing you’re
gonna hit a hole-in-one on every hole
you wouldn’t play golf if every time you
got out of tea you just took a swing of
the ball ended up in the hole be fun for
a few days you get get on TV but it
thing would not be any fun so its
failure you know and I wouldn’t even
consider them failures but their
mistakes you whatever you want to call
it they’re part of the game and in the
end you know you go on and and we’ve
made plenty of mistakes in business
we’ll make money more and then you know
the Babe Ruth and you know for a long
time it subsequently got eclipsed by a
few fellows but he held the record for
strikeouts and also the held the record
for home runs and was I play baseball
player until the modern era came along
yeah so it’s it’s part of the game if
you take big swings you know you know it
may you may you’re gonna miss some times
rule number four take care of your body
and mind seventy years ago I was in high
school almost a third as long as the
country has been around
and when I was in high school I really
only had two things on my mind
girls and cars and and I wasn’t doing
very well with girls so we’ll talk about
cars but let’s just imagine that when we
finished I’m gonna let each one of you
pick out the car of your choice sounds
good doesn’t it
you pick it out any color you name it
it’ll be tied up with a bowl and I’ll be
at your house tomorrow and you say well
what’s the catch and the catch is that
it’s the only car you’re going to get in
your lifetime now what are you going to
do knowing that that’s the only car
you’re ever going to have and you love
that car
you’re going to take care of it like you
cannot believe
now what I’d like to suggest you’re not
going to get only one car in your
lifetime but you really get one body and
one mind and that’s all you’re gonna get
and that body and mind feels terrific
now but it has to last you a lifetime
rule number five be determined to
succeed I would like to tell you of two
women that each sold the business to
Berkshire Hathaway to me actually for
many many many millions of dollars both
of them started with $2,500 by a
coincidence whose exact same Ahmad it
was everything they had in the world and
one of them was a woman who landed in
Seattle in 1917 couldn’t speak a word of
English had a tag around her neck the
tag said Fort Dodge Iowa the Red Cross
got her to Fort Dodge where she was
reunited with her husband who would come
to the country a couple years earlier
and she lived in Fort Dodge for two
years and as she put it she felt like a
dummy she couldn’t pick up the language
and she couldn’t learn a word and so she
decided and she
husband decided to move to Omaha so they
came to Omaha in 1919 and there she
found a small colony of Russian Jews so
she started feeling more at home and
then as her oldest daughter went to
school she would come home this daughter
Frances and she would teach her mother
the words that she learned in school
that day and this woman rose bumpkin
spent 20 years saving money bringing
first her siblings over her mother and
father fifty dollars at a time she sold
youth clothing to do it she had four
children during this period and by 1937
after 20 years
she saved $2,500 she went to Chicago and
she bought what she put a furniture her
dream had always been to open a
furniture store and this woman would
never gone to school one day in her life
with $2,500 but with the same spirit
that the people in this room had about
having a dream and working to accomplish
that dream she built a business which
she sold me in 1983 for 60 million
dollars approximately in which which did
a billion and a half dollars worth of
business last year the fourth generation
is working in that business
this woman rose blumpkin lived well she
she worked for me until she was 103 and
then then I’m not said then she retired
and she died the next year which is a
lesson to all of her church managers
pretty mature retirement nothing you
can’t tell what’s going to happen but
mrs. B with their $2,500 one further
fact about her she could not read or
write and she went into a furniture
business and she didn’t bring anything
in unique in furniture but she brought a
determination to succeed she knew she
could outwork anyone else she knows she
cared about her customers she worked at
Murray Lowell gross margins but she
built this incredible business rule
number six have integrity
it takes three qualities essentially to
do well and extremely well actually in
this country it takes intelligence it
takes energy and it takes integrity and
I say if you don’t have integrity you
know if we don’t want to hire somebody
that’s got intelligence and energy if
they don’t have integrity we’d rather
hire somebody that’s dumb and lazy if
they don’t have integrity because they
probably never get around to cheating us
or doing something and integrity is
absolutely an option you know you may
not be able to throw a football 60 yards
and you know you may not be able to run
109 8 you know you may not be able to
sink three-pointers from but you can
choose where you stand on the integrity
scale you can’t you weren’t born wired
one way or the other that is an absolute
choice you make rule number seven read 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 practically but
then I pulled the book out there have to
be who’s in America and it told me
something about my professor Benjamin
Ram
then I looked up and I went to the
library and I said I want to look more
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 I read about
one-fifth the pace
the bill does but I still spend five or
six hours a day reading I made 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 it seemed so extraordinary
in the lessons of oath you know the
discouragements they face just
everything about it so I did you can’t
get enough of reading rule number eight
discover your passion sad students last
week honored 60 of them from Harvard and
South Dakota State I just tell them try
to find your passion and you know I mean
may not find it the first time but you
know don’t sleepwalk through life find
something that you really enjoy doing if
you can do it and not you know not
everybody is lucky enough to be able to
find that but it’s it ought to be years
old but to make ten dollars a week more
doing something that you don’t feel good
about compared to something you’d feel
good about you know make the change bill
said something I thought was really
interesting he said the thing you do
obsessively between age 13 and 18 that’s
the thing you have the most chance of
being world-class at yeah they’ll said
his one thing was coding
what was your one obsessions no bill and
I his father many years ago right after
we met had us a group of about 20 right
down on the sheet of paper one word that
they thought accounted for their success
and bello guy who may hole in that twice
didn’t know what the other one was
writing down we both wrote down the same
word which was focus and he was focused
on software I was focused on investments
and it it gave me a big advantage to
start very young there’s no question
about it
rule number nine have the right heroes
and having the right heroes you know is
this terribly important you know you
tell me who a 10 year olds heroes are
and I can give you a pretty good
prediction about about how they’re going
to turn out you want to choose your
heroes very carefully because you’re
going to you’re going to look like them
at some point
and you’re lucky if you’ve got if you’ve
got the right ones over there and rule
number 10 the last one before a very
special bonus clip is be a thinker fine
what do you consider the most important
quality for an investment manager
it’s the temperamental quality not an
intellectual quality you don’t need tons
of IQ in this business I mean you have
to have enough IQ to get from here to
downtown Omaha but but you do not have
to be able to play three-dimensional
chess or be in the top leagues in terms
of bridge playing or something of a sort
you need a stable personality you need a
temperament that neither derives great
pleasure from being with the crowd or
against the crowd because this is not a
business where you take polls it’s a
business where you think and then Graham
would say that you’re not right or wrong
because a thousand people agree with you
and you’re not right or wrong because a
thousand people disagree with you you’re
right because you’re faxing your
now I’ve got a really special bonus clip
from Warren on how to accept your
mistakes that I think you’re really
gonna enjoy but before that it’s time
for the three-point landing questions
time that move from just watching
another video to taking action in your
life for business and if you’re feeling
bold leave your answers in the comments
below here we go
question number one who are your heroes
number two what failure do you need to
turn into a plus and number three what
how do you know when to throw in the
towel on an investment or business when
you throw in the towel on a investment
or business business yeah well you what
you know you do it too late I’ve done I
I went the textile business by accident
in 1965 and I threw in the towel about
20 years later and that was about 20
years too late the there’s a great
tendency to want to hold on justify old
decisions I mean it’s a human human
trait and what when you really know
you’ve got a bad business is when you
have a good manager and you’re getting
bad results I mean it when you when
you’re getting bad results with a bad
manager you still have to examine the
question of whether you know you can get
better results if you got a better
manager usually you can’t you know I’ve
said in the past you know that when a
when a management with a reputation for
excellence Encounters of business with a
reputation for bad economics it’s the
reputation of the business that remains
intact and and I’ve proved that many
times there are businesses that are just
plain tough you know and there’s the
copy there may be too many competitors
but there’s reasons why they don’t drop
out there’s reasons well we we started
out in textiles and we made over half of
the the linings for men’s suits in the
country and we we went through World War
two and got awards and and sears roebuck
named us their supplier of the year and
all of that sort of thing and then we’d
say what we’d like to increase the price
of of these linings a quarter of a cent
of yard and service account of your mind
there’s ten other guys that’ll sell them
to us at the old price and nobody ever
went into a Sears store and said I’d
like a a blue Serge Serge as blue shirt
Serge suit with a half of way lining it
didn’t exist we had no connection to the
consumer and there are lots of lousy
businesses you know and there’s lots of
wonderful businesses and or my job over
the years has been to try and figure out
which is which and I’ve made plenty of
mistakes I bought a company called extra
shoes
in the early 90s I paid four hundred
plus million dollars for it and it it
made no money before I bought it but you
know that as soon as I bought it they
pulled some switch or something I
immediately started losing money and and
it was because of foreign competition so
on earth it was because I don’t know I
don’t know ah and it went to zero and
the worst thing was that I paid for it
in stock so that 400 million in stock I
gave at the time is now worth about five
billion so it so every time
Berkshire stock goes down I feel a
little bit better because of my
opportunity loss not just business but
you know when I looked at Dexter shoe
they had a good position in retailers
they turned out good shoes they had a
great workforce all kinds of things but
I just forgot one thing that that they
weren’t going to make shoes in the
United States anymore so you make you
make mistakes and it does pay to
recognize quickly when you made them if
you’ve got a good person running a
business in it isn’t making any money
you know you’re in the wrong business
if you want more warren buffett check
out the last top 10 video made on him
the link is right there next to me I
think you’ll enjoy it continue to
believe and I’ll see you there they made
us do all these crazy things to get out
of ourselves and so we stood on tables
and did all kinds of things I had have done that final life further than ever
going to have an edge is enormous ly
important
it takes three qualities essentially to
do well and extremely well actually in
this country to make $10 a week more
doing something that you don’t feel good
about compared to something you’d feel
good about yeah make the change need
motivation watch a top 10 went believe
nation what’s that belief nation it
seven I believe in you and this channel
is designed to be a part of your daily
success routine so let’s get your
motivation to attend and get you
believing in you grab a snack and chew
in today’s lessons from a man who went
from being interested in investing from
a young age and owning pinball machines
and delivering newspapers growing up to
becoming known as the wizard of Omaha
and being worth over 80 billion dollars
he is Warren Buffett and here’s my take
on his top 10 rules a success vol 4 also
if you want to know what Warren Buffett
and other successful entrepreneurs have
to say about building unstoppable
confidence check on my 250 for
confidence series where every day for
the next 254 days I will send you a
morning video for free to help you build
your confidence the link to join is in
the description below it’s important
associated with people who are better
okay let’s kick it off with rule number
one define your circle of competence Ted
Williams wrote a book called the science
of hitting and inanity at a picture of
himself at bat and the strike zone
broken into I think seventy-seven
squares and he said if he waited for the
pitch that was really the sweet spot he
would bat 400 and if he had to swing at
something on the lure corner he would
probably bad 235 and an investing I’m in
a know called strike business which is
the best business you can be in I can
look at a thousand different companies
and I don’t have to be right on every
one of them or even fifty of them so I
can pick the ball I want to hit and the
trick in investing is just to sit there
and watch you 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 common 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
rule number two do what you love I was
wondering how you define success
personally well I can certainly define
happiness because that’s what that’s
what I am I mean I I am and if that
I mean I get to do what I like to do
every single day of the year I get to do
it with people I like I get that I get
to I don’t have to associate with
anybody causes my stomach to churn and
the only thing I might get a job I don’t
like and this only happens about every
three or four years occasionally I have
to fire somebody and I don’t like that’s
the only thing other than I tap dance to
work and I get down there and I think
I’m supposed to lie on my back and paint
the ceiling you know or something I mean
yeah that’s where I feel and I’ve been
and it doesn’t diminish its it’s
tremendous fun so you know if they say
that success is getting what you want
and happiness is wanting what you get
well I don’t know which one applies in
this case but I I do know that I
wouldn’t be doing anything else
something that I do advise you you know
and when you go out to work go to go to
work for an organization that you admire
people you admire because it’ll it’ll
it’ll turn you on and and and you ought
to be happy where you are working and I
always worry about people who say you
know I’m gonna do this for ten years I
really don’t like it very well I’ll be
ten more years of this and resume I mean
that’s a little exciting up sex for your
not a very good idea so get right it you
got a recommend that get right into what
you enjoy
and you’ll be successful at it you ready
well I mean you won’t be able to miss
and you know that’s I don’t regard what
I do is the most important thing in the
world at all but it’s right for me I
mean I happen to be wired in a certain
way that what I do works in this if I
had to do what you know bill does I mean
last about ten minutes and let’s trip a
lot of things but I luckily I kind of
stumbled into the thing that I I do best
and and that you know that it’s worked
out boom rule number three turn a
failure into a plus how do you turn
failure into a plus and it’s true when I
was in university Nebraska one day I was
reading the daily Nebraskan and it said
in room 303 o’clock that will be this
panel of three professors here at the
University and they’re going to award
the Nathan gold scholarship I don’t know
whether you so you still have it around
and at the time it said it would give
you five hundred dollars to go to the
graduate school of your choice I don’t
know whether it’s changed in the
mountain but that that was it so I read
this and I went there to this room at
three o’clock that day or whatever it
was and I walked in the room and there
were the professors and I was the only
student that showed up I mean it really
got to him I mean they were stuck hey
you know I kept waiting and looking at
their watch you’re hoping there’ll be
more candidates but there no one came in
so I won $500 by default and
those are usually my biggest triumphs
what nobody else shows up and so here I
was I had $500 to go toward any it
wasn’t it was the limited as any any
graduate school for a master’s degree so
I applied to Harvard my dad wanted me to
and i shortly heard from harvard and
they said go to chicago and meet this
fellow running that who interviews
applicants from the midwest
so i got on the train and that’s what
you did in those days and i spent on 10
hours on the burlington going to chicago
then I transferred to another little
inner urban train to go up to this
country day school where this fellow was
the headmaster and he was the big
interviewer for Harvard and I got there
and after about 10 minutes he he said
better think about something else you
know he come back later on
I was I was 19 at the time and I looked
about 12 you know and and I and I acted
about 8 it was not a great combination
but so he said forget it
so I spent a little inner urban train
back to Chicago when I took the 10-hour
train back to Omaha all the time hanging
what do I tell my parents you know it’s
kind of embarrassing but it was it was
the luckiest thing ever happened to me
because if I’d gone to Harvard I would
have gone to a 2-year business school
iin stead applied to Columbia where I
could graduate in one year and get a
masters degree luckily that by the
accident of it and being in the Nebraska
National Guard which did not get called
up for the Korean War I missed going in
the Korean War I I got to meet Ben
Graham and we had an enormous effect on
me subsequently and I probably got my
wife that way because she was going to
Northwestern and I was able to put on
sort of a full-court press because I got
out in one year and otherwise she’d
she’d have met some other guy I mean I
got her before the competition showed up
and so it worked out wonderfully it
couldn’t work
got better and that’s been that’s been
my life basically I mean it the things
you know you will get some
disappointments you know but the future
is what counts if I knew every decision
I was going to make was going to be
perfect it would not be as much fun he
liked playing golf and knowing you’re
gonna hit a hole-in-one on every hole
you wouldn’t play golf if every time you
got out of tea you just took a swing of
the ball ended up in the hole be fun for
a few days you get get on TV but it
thing would not be any fun so its
failure you know and I wouldn’t even
consider them failures but their
mistakes you whatever you want to call
it they’re part of the game and in the
end you know you go on and and we’ve
made plenty of mistakes in business
we’ll make money more and then you know
the Babe Ruth and you know for a long
time it subsequently got eclipsed by a
few fellows but he held the record for
strikeouts and also the held the record
for home runs and was I play baseball
player until the modern era came along
yeah so it’s it’s part of the game if
you take big swings you know you know it
may you may you’re gonna miss some times
rule number four take care of your body
and mind seventy years ago I was in high
school almost a third as long as the
country has been around
and when I was in high school I really
only had two things on my mind
girls and cars and and I wasn’t doing
very well with girls so we’ll talk about
cars but let’s just imagine that when we
finished I’m gonna let each one of you
pick out the car of your choice sounds
good doesn’t it
you pick it out any color you name it
it’ll be tied up with a bowl and I’ll be
at your house tomorrow and you say well
what’s the catch and the catch is that
it’s the only car you’re going to get in
your lifetime now what are you going to
do knowing that that’s the only car
you’re ever going to have and you love
that car
you’re going to take care of it like you
cannot believe
now what I’d like to suggest you’re not
going to get only one car in your
lifetime but you really get one body and
one mind and that’s all you’re gonna get
and that body and mind feels terrific
now but it has to last you a lifetime
rule number five be determined to
succeed I would like to tell you of two
women that each sold the business to
Berkshire Hathaway to me actually for
many many many millions of dollars both
of them started with $2,500 by a
coincidence whose exact same Ahmad it
was everything they had in the world and
one of them was a woman who landed in
Seattle in 1917 couldn’t speak a word of
English had a tag around her neck the
tag said Fort Dodge Iowa the Red Cross
got her to Fort Dodge where she was
reunited with her husband who would come
to the country a couple years earlier
and she lived in Fort Dodge for two
years and as she put it she felt like a
dummy she couldn’t pick up the language
and she couldn’t learn a word and so she
decided and she
husband decided to move to Omaha so they
came to Omaha in 1919 and there she
found a small colony of Russian Jews so
she started feeling more at home and
then as her oldest daughter went to
school she would come home this daughter
Frances and she would teach her mother
the words that she learned in school
that day and this woman rose bumpkin
spent 20 years saving money bringing
first her siblings over her mother and
father fifty dollars at a time she sold
youth clothing to do it she had four
children during this period and by 1937
after 20 years
she saved $2,500 she went to Chicago and
she bought what she put a furniture her
dream had always been to open a
furniture store and this woman would
never gone to school one day in her life
with $2,500 but with the same spirit
that the people in this room had about
having a dream and working to accomplish
that dream she built a business which
she sold me in 1983 for 60 million
dollars approximately in which which did
a billion and a half dollars worth of
business last year the fourth generation
is working in that business
this woman rose blumpkin lived well she
she worked for me until she was 103 and
then then I’m not said then she retired
and she died the next year which is a
lesson to all of her church managers
pretty mature retirement nothing you
can’t tell what’s going to happen but
mrs. B with their $2,500 one further
fact about her she could not read or
write and she went into a furniture
business and she didn’t bring anything
in unique in furniture but she brought a
determination to succeed she knew she
could outwork anyone else she knows she
cared about her customers she worked at
Murray Lowell gross margins but she
built this incredible business rule
number six have integrity
it takes three qualities essentially to
do well and extremely well actually in
this country it takes intelligence it
takes energy and it takes integrity and
I say if you don’t have integrity you
know if we don’t want to hire somebody
that’s got intelligence and energy if
they don’t have integrity we’d rather
hire somebody that’s dumb and lazy if
they don’t have integrity because they
probably never get around to cheating us
or doing something and integrity is
absolutely an option you know you may
not be able to throw a football 60 yards
and you know you may not be able to run
109 8 you know you may not be able to
sink three-pointers from but you can
choose where you stand on the integrity
scale you can’t you weren’t born wired
one way or the other that is an absolute
choice you make rule number seven read 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 practically but
then I pulled the book out there have to
be who’s in America and it told me
something about my professor Benjamin
Ram
then I looked up and I went to the
library and I said I want to look more
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 I read about
one-fifth the pace
the bill does but I still spend five or
six hours a day reading I made 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 it seemed so extraordinary
in the lessons of oath you know the
discouragements they face just
everything about it so I did you can’t
get enough of reading rule number eight
discover your passion sad students last
week honored 60 of them from Harvard and
South Dakota State I just tell them try
to find your passion and you know I mean
may not find it the first time but you
know don’t sleepwalk through life find
something that you really enjoy doing if
you can do it and not you know not
everybody is lucky enough to be able to
find that but it’s it ought to be years
old but to make ten dollars a week more
doing something that you don’t feel good
about compared to something you’d feel
good about you know make the change bill
said something I thought was really
interesting he said the thing you do
obsessively between age 13 and 18 that’s
the thing you have the most chance of
being world-class at yeah they’ll said
his one thing was coding
what was your one obsessions no bill and
I his father many years ago right after
we met had us a group of about 20 right
down on the sheet of paper one word that
they thought accounted for their success
and bello guy who may hole in that twice
didn’t know what the other one was
writing down we both wrote down the same
word which was focus and he was focused
on software I was focused on investments
and it it gave me a big advantage to
start very young there’s no question
about it
rule number nine have the right heroes
and having the right heroes you know is
this terribly important you know you
tell me who a 10 year olds heroes are
and I can give you a pretty good
prediction about about how they’re going
to turn out you want to choose your
heroes very carefully because you’re
going to you’re going to look like them
at some point
and you’re lucky if you’ve got if you’ve
got the right ones over there and rule
number 10 the last one before a very
special bonus clip is be a thinker fine
what do you consider the most important
quality for an investment manager
it’s the temperamental quality not an
intellectual quality you don’t need tons
of IQ in this business I mean you have
to have enough IQ to get from here to
downtown Omaha but but you do not have
to be able to play three-dimensional
chess or be in the top leagues in terms
of bridge playing or something of a sort
you need a stable personality you need a
temperament that neither derives great
pleasure from being with the crowd or
against the crowd because this is not a
business where you take polls it’s a
business where you think and then Graham
would say that you’re not right or wrong
because a thousand people agree with you
and you’re not right or wrong because a
thousand people disagree with you you’re
right because you’re faxing your
now I’ve got a really special bonus clip
from Warren on how to accept your
mistakes that I think you’re really
gonna enjoy but before that it’s time
for the three-point landing questions
time that move from just watching
another video to taking action in your
life for business and if you’re feeling
bold leave your answers in the comments
below here we go
question number one who are your heroes
number two what failure do you need to
turn into a plus and number three what
how do you know when to throw in the
towel on an investment or business when
you throw in the towel on a investment
or business business yeah well you what
you know you do it too late I’ve done I
I went the textile business by accident
in 1965 and I threw in the towel about
20 years later and that was about 20
years too late the there’s a great
tendency to want to hold on justify old
decisions I mean it’s a human human
trait and what when you really know
you’ve got a bad business is when you
have a good manager and you’re getting
bad results I mean it when you when
you’re getting bad results with a bad
manager you still have to examine the
question of whether you know you can get
better results if you got a better
manager usually you can’t you know I’ve
said in the past you know that when a
when a management with a reputation for
excellence Encounters of business with a
reputation for bad economics it’s the
reputation of the business that remains
intact and and I’ve proved that many
times there are businesses that are just
plain tough you know and there’s the
copy there may be too many competitors
but there’s reasons why they don’t drop
out there’s reasons well we we started
out in textiles and we made over half of
the the linings for men’s suits in the
country and we we went through World War
two and got awards and and sears roebuck
named us their supplier of the year and
all of that sort of thing and then we’d
say what we’d like to increase the price
of of these linings a quarter of a cent
of yard and service account of your mind
there’s ten other guys that’ll sell them
to us at the old price and nobody ever
went into a Sears store and said I’d
like a a blue Serge Serge as blue shirt
Serge suit with a half of way lining it
didn’t exist we had no connection to the
consumer and there are lots of lousy
businesses you know and there’s lots of
wonderful businesses and or my job over
the years has been to try and figure out
which is which and I’ve made plenty of
mistakes I bought a company called extra
shoes
in the early 90s I paid four hundred
plus million dollars for it and it it
made no money before I bought it but you
know that as soon as I bought it they
pulled some switch or something I
immediately started losing money and and
it was because of foreign competition so
on earth it was because I don’t know I
don’t know ah and it went to zero and
the worst thing was that I paid for it
in stock so that 400 million in stock I
gave at the time is now worth about five
billion so it so every time
Berkshire stock goes down I feel a
little bit better because of my
opportunity loss not just business but
you know when I looked at Dexter shoe
they had a good position in retailers
they turned out good shoes they had a
great workforce all kinds of things but
I just forgot one thing that that they
weren’t going to make shoes in the
United States anymore so you make you
make mistakes and it does pay to
recognize quickly when you made them if
you’ve got a good person running a
business in it isn’t making any money
you know you’re in the wrong business
if you want more warren buffett check
out the last top 10 video made on him
the link is right there next to me I
think you’ll enjoy it continue to
believe and I’ll see you there they made
us do all these crazy things to get out
of ourselves and so we stood on tables
and did all kinds of things I had have done that final life further than ever
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