Sadly, all too many investors approach investing as making a fast buck and making it big. That is speculation, selfish speculation—without riches.
When I visited Warren in ‘85 he mentioned that he measured his managerial success by how few shares traded. It took many years for the profoundness of that comment to sink in. In one of Charlie Rose’s last interviews, he asked Warren what he would do, if something were to destroy Berkshire. He cheerfully responded by saying that he would continue to do what he loved to do—to invest. Then, with his voice breaking, he added: it would bother him greatly that he had let his shareholders down.
How many companies attract 40,000 shareholders to their annual meetings?
When I managed people’s money, I learned from Warren the importance of reporting to them as I would wish to be reported to. I also discovered that I could dispense with most companies by reading only the first paragraph of the chairman’s letter: it will tell the reader a lot about the culture of a company: glossy BS or candid honesty. Charlie advised us to have three, not only two, boxes on our desk: IN, OUT, and TOO DIFFICULT. I would amend the third to NOT TO BE TRUSTED.
Arthur - Thanks, as always, for sharing your wisdom and experience on this. I love the "Not To Be Trusted" box idea. And, you're right, it's amazing how few CEOs and chairmen do something as simple as reporting to shareholders the information that they themselves would want if positions were reversed. That's hardly asking too much! And yet...
Well, I suppose having so few makes life simpler. But fewer options. Milton Friedman gave a talk once: The importance of the Golden Rule for preserving free choice. He was reminding us that the GR does exist—and is worth following!
By and large, the people who have this ethos win in life and they don't win just money, just honors and emoluments. They win the respect, the deserved trust of the people they deal with, and there is huge pleasure in life to be obtained from getting deserved trust."---Charlie Munger
Sadly, all too many investors approach investing as making a fast buck and making it big. That is speculation, selfish speculation—without riches.
When I visited Warren in ‘85 he mentioned that he measured his managerial success by how few shares traded. It took many years for the profoundness of that comment to sink in. In one of Charlie Rose’s last interviews, he asked Warren what he would do, if something were to destroy Berkshire. He cheerfully responded by saying that he would continue to do what he loved to do—to invest. Then, with his voice breaking, he added: it would bother him greatly that he had let his shareholders down.
How many companies attract 40,000 shareholders to their annual meetings?
When I managed people’s money, I learned from Warren the importance of reporting to them as I would wish to be reported to. I also discovered that I could dispense with most companies by reading only the first paragraph of the chairman’s letter: it will tell the reader a lot about the culture of a company: glossy BS or candid honesty. Charlie advised us to have three, not only two, boxes on our desk: IN, OUT, and TOO DIFFICULT. I would amend the third to NOT TO BE TRUSTED.
Arthur - Thanks, as always, for sharing your wisdom and experience on this. I love the "Not To Be Trusted" box idea. And, you're right, it's amazing how few CEOs and chairmen do something as simple as reporting to shareholders the information that they themselves would want if positions were reversed. That's hardly asking too much! And yet...
Well, I suppose having so few makes life simpler. But fewer options. Milton Friedman gave a talk once: The importance of the Golden Rule for preserving free choice. He was reminding us that the GR does exist—and is worth following!
Yep, it's amazing how many different areas the Golden Rule pops up in!
By and large, the people who have this ethos win in life and they don't win just money, just honors and emoluments. They win the respect, the deserved trust of the people they deal with, and there is huge pleasure in life to be obtained from getting deserved trust."---Charlie Munger
Charlie, as always, nailed it!
No cap, trust is the ultimate currency. Buffett’s playbook proves it’s all about those small wins over time
Well said. Trust is one currency at no risk of going out of style.