15 excerpts from Warren Buffett's Biography: Snowball & the Business of Life (Part 3 of 3)

If you are interested on his investment principles, you can catch Part 2 of 3 at: 

https://weesertan.blogspot.com/2020/05/15-excerpts-from-warren-buffetts_23.html

The final 5 learnings from this 800+ page biography touches on the intangible quality one should have.

Buffett seems to be value money and known as "stingy", but he was also very strict when it came to values and principles

11. Dale Carnegie's teaching

If you want to gather honey, don't kick over the beehive.

Rule number 1: Don't criticize, condemn or complain.

Criticism puts people defensive. Criticism is futile. Everyone wants attention and admiration. Give the other person a fine reputation to live up to. Don't try to change others. Changing yourself to suit them would be a sensible choice. Unless, that someone is dear to you. 

"Praise by name, criticize by category"

Buffett was a likeable boss who never lost his temper, never changed his mind capriciously, never said a rude word, berated and criticized his employees, didn't second-guess and interfere people on their work. Munger says that "Warren doesn't have stress, he causes it."

"I don't enjoy battles. I won't run from them if I need to do it. I don't get into fights just to get in fights."

One of the battles he had was at Salomon Brothers, and he managed it superbly. 

During the conflict with Pampered Chef on abortion, he shrank from confrontation, or showed any sign of rancor over the criticism or the pro-life victory laps.

“You can always tell them to go to hell tomorrow,” said Tom Murphy, a friend. There was never any need to do it today. Buffett had saved himself a lot of trouble by following this advice.

15 excerpts from Warren Buffett's Biography: Snowball & the Business of Life (Part 2 of 3)

Hot on the heels of the first 5 excerpts from Part 1 of 3, which focused on Buffett's thoughts and life principles, I am happy to share the next 5 tips from this 800+ pages biography.

The next few points are focused on investment tactics Buffett holds dearly to.

Investing is quite a stressful job - But it becomes bearable when you have genuine interest

6. The bathtub memory

The ability to handle stress, negativity and bad days is crucial. 

Buffet will still occasionally lose sleep, feel stress, but is able to put away unwanted distraction like flushing the water in the bathtub. After the dirty water is discharged he gets back to routine.

We can all complain and feel sorry for ourselves. It brings us nowhere. Only the brave and strong-willed people will succeed. 

7. Defining risk.

Buffett and Munger considered defining risk as volatility to be "twaddle and bullshit". They defined risk as not losing money. To them, risk was "inextricably bound up in your time horizon for holding an asset". Someone who could hold an asset for years could afford to ignore its volatility, but someone who was leveraged can't.

In the 1950’s, Buffett worked for Ben Graham, his teacher. When Ben Graham and Jerry Newman invited Buffett to become Junior Partner at Graham-Newman, he declined and helped to wind down the partnership. He went back to Omaha, taking a risky decision to work on his own outside New York City. 

This was a contrast as most businessmen worked for big companies and competed with polished ferocity for the best paying job on the steady climb up the ladder of success, trying not to break a sweat of golf club along the way.

“Betting on volatility seem to make sense when the market rose as predicted. When enough time passes and nothing bad happens, people who are making a lot of money tend to think it is because they are smart, not because they are taking a lot of risk.”

Though Wall Street changed its ways in the 60's to 70's, Buffett's own habits had changed little.

“When you invest, you have to take some risk. The future is always uncertain. I think a group of these (Korean) stocks will do very well for several years. Some of them may not do well, but as a group, they should do very well. I could end up owning them for several years.”

15 excerpts from Warren Buffett's Biography: Snowball & the Business of LIfe (Part 1 of 3)

It was a 800+ page biography, and it took me around 2 months to complete, where I powered through the weekends. At the end, it felt great. It also felt like an achievement in life.

Buffett seems one of the most unconventional billionaires around, as he lives an ordinary enough life. He is also a teacher, who jumps at every chance to share his thoughts and knowledge. It was a pleasure reading about him.

Reading is fun - It's like traveling, as you enter a different realm

I also learned many new words (mostly American English).

I will most likely revisit these quotes every month, as it not only taught me about investing, but also the business of life.

1. The Genie

"Let's say that I turned 16, a genie had appeared to me. And the genie said, 'Warren, I'm going to give you your wish (the car of your choice). Brand new. And it's all yours.'

I would ask, 'what's the catch?' And the genie would answer, 'There is only one catch. This is the last car you're ever going to get in your life. So it's got to last a lifetime.'

“I would read the manual about 5 times, and always keep it garaged. If there was the least little dent or scratch, I'd have it fixed right away because I wouldn't want it rusting. I would baby the car, because it would have to last a lifetime.”

"That's exactly the position you are in concerning your mind and body. You only get one mind and one body. And it's got to last a lifetime. Now, it's very easy to let them ride for many years. But if you don't take care of that mind and body, they'll be a wreck forty years later, just like the car would be."

"It's what you do right now, today, that determines how your mind and body will operate ten, twenty, and thirty years from now." 

To students in private, Buffett explained his "Twenty Punches" approach to investing. "You'd get very rich. If you thought of yourself as having a card with only twenty punches in a lifetime, and every financial decision used up one punch. You'd resist the temptation to dabble. You'd make big and better decisions."

Buffett bet and paid his kids $2000 for not smoking during / after graduation. He also made bets with them to control their weight. As for himself, he doesn’t take alcohol, and was happy with hamburgers and Coca-cola (which doesn't sound too healthy either).

Incredible India - New Delhi Part 3

Previously in New Delhi Part 2:

https://weesertan.blogspot.com/2020/05/incredible-india-new-delhi-part-2.html

There was still one last stop on my New Delhi itinerary - Humayun's Tomb in Hazrat Nizamuddin - a legendary enclave. I had a senior called Humayun, and I was intrigued with this place - Hazrat Nizamuddin, in the middle of New Delhi. 

Humayun's Tomb is also along the Yamuna River - The river that will lead to the banks of the Taj Mahal

~~~

Feeling refreshed, I walked out of the serene Lodhi Garden after a historical visit to Gandhi Smrithi in Part 2.

Adjacent to Lodhi Garden was Khan Market, an uptown square which felt like Clark Quay of Singapore or Sri Hartamas in KL.

  There was a FREE public toilet!

Out of curiosity, I went up Starbucks. There was a security guard at the door, who I presume was there to ensure only customers were allowed in. It was definitely not affordably priced. 

Not a coffee lover, and was already loaded with too much chai (tea), that I ordered a Flapp, which was a mistake

I then went to Hazrat Nizamuddin, to visit Humayun's Tomb, another famous attraction and UNESCO site.

Nizamuddin sounds like a common name in Malaysia. The suburb of Nizamuddin has ferocious history, and one of the last ruled enclave of the Mughal Empire (till the late 1800s'). There was a mystique aura oozing out of this area.

Incredible India - New Delhi Part 2

I visited the main landmarks of Delhi - Red Fort and Jama Masjid in Day 1:

https://weesertan.blogspot.com/2020/04/incredible-india-new-delhi-part-1.html

Those were the touristy stuffs that you have to see. 

I had also allocated 2 full days to visit a friend, and take casual stroll around this historical city. Taking the Delhi Metro is recommended. It's clean, convenient and efficient. 

The first stop was India Gate.

Rajpat, or King's Way during the colonial days. 

India Gate (left) was to commemorate WWI, while the Secretariat Building (right) was where the British ruled from. 

Walking along the Rajpat from India Gate, you would reach the Secretariat Buildings, the government headquarters, situated on top of Raisina Hill. For 20 rupees, a Tuk-Tuk will safe you from walking 30 minutes.

The Secretariat Buildings - The center of British Raj

 Prime Minister's office (behind the Jaipur Pillar) - No entry permitted

However, away from the glamour and splendour, reality was still stark.

Sorting out rubbish

Luang Prabang, Laos (December 2012)

This is a retro-post from December 2012. It's always nice looking back at some of the adventures in the past. You feel thankful and blessed. 

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I first read about Luang Prabang in Laos in 2011. That article rated Luang Prabang in Laos, Angkor Wat in Cambodia, and Bagan in Burma as the 3 ancient, sacred / ancient Buddhist sites in South East Asia. Thailand is not on the list.

I've been to both the latter sites, which leaves Luang Prabang the elusive one out.

I was determined to get there and complete the trilogy. 

So when AirAsia came in with a return ticket offer of RM 140.00, I swoop up a 3D3N trip round ticket. Those were days were I started traveling solo. It was difficult to match everyone's timing. 

I was later joined by my cousin, and my nephew, who had just completed his SPM.

The uncles bringing the nephew to see how other people live.

Having visited all 10 South East Asian countries - Laos has the slowest pace of life, ever (Picture taken on the Arc of Triumph, Vientiane)

A mini-version of the original in Paris