Warren Buffett MBA talk @ University of Florida
I am unabashed fan of Warren Buffett and I really enjoyed watching this video of him speaking to a MBA class at University of Florida. Its a little over an hour but its time well spent.
The video is from 2000, but like all of his advice its timeless. One the things mentioned in the talk that really stuck out in my mind is the following in reference to the failure of Long Term Capital:
To make money they didnt have and didnt need they risked what they did have and what they did need.
He goes on to make an example with someone who has 100 million dollars. If this person can earn 10% a year on his 100 million dollars without leverage at almost no risk, or take some risk and leverage his 100 million dollars to make a 20% return this person would be crazy to risk losing their 100 million for an additional 10%. Especially because they already have 100 million bucks, how is the additional 10% going to make their life that much better? It isn’t it. But the downside if they loose is obvious, they no longer have any money.
The google video link above is for the whole 1 hour talk, its also on youtube broken up in smaller chunks.
Other Warren Buffett videos:
Tags: berkshire hathaway, brk, brk.a, brk.b, charlie rose, interview, investing, LinkedIn, MBA, university of florida, value, warren buffett
January 9th, 2009 at 6:03 am
Thanks for the nice review. I will make sure to check out the lecture online.
Good luck with your value investing blog!
July 31st, 2009 at 1:33 pm
[...] mean you should have a concentrated portfolio? Here are Buffet’s thoughts he delivered to an MBA class. If you are not a professional investor, if your goal is not to manage money in such a way to get [...]