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Money lessons from Warren Buffett & Charlie Munger


NEW DELHI: Recently, the yearly shareholders’ meet of Warren Buffett’s Berkshire Hathaway came about in Omaha. The international’s most renowned shareholder’s meet lived up to its billing. There used to be a large exhibition where shareholders could purchase or sample the products of the companies that Berkshire owns. However, the spotlight used to be a longer Q&A with Buffett and his deputy Charlie Munger. Despite the 2’s advanced age, the Q&A lasted most of the day.

The questions at the meet came from two resources. One lot used to be decided on from emailed questions by means of a panel of economic analysts and writers and the second from shareholders at the venue who were decided on by means of lottery. Many of the questions were connected immediately to Berkshire’s businesses. However, a good number were basic questions about investing or trade. In maximum instances, Buffett and Munger gave lengthy, reasoned answers that incessantly went into the rules underlying what they do.


There used to be this 27-year-old who stated he “wanted to be a perfect cash supervisor like you two” and wanted advice. Buffett gave a pleasant lengthy solution however Munger narrated this story: A young man who had asked Mozart about how he could begin composing symphonies. Mozart informed the man that at 22 years outdated, he used to be too younger. “You were writing symphonies when you were 10 years outdated,” the man protested. “Yes, however I wasn’t working round asking other folks methods to do it,” Mozart responded.


There used to be every other question whose solution used to be relatively a surprise. A 13-year outdated boy asked how a teenager could broaden “delayed gratification”. The child stated his father made him watch many movies of the 2 and informed him that used to be the important thing to luck.


Munger’s solution used to be blunt. Having raised eight children, he stated he no longer believed it imaginable to teach delayed gratification. You are both born with it, or no longer. Buffett used to be more circumspect. He stated whilst saving used to be important, he didn't believe that for all families, under all circumstances, saving used to be the best thing to do. If you postpone a two-day commute to Disneyland and are in a position to have the funds for a seven-day commute many years later, it may not be your only option. You don’t see a correlation between cash and happiness beyond a definite level.


Is this the type of solution the boy and his father were on the lookout for? I’m no longer certain. I were given the sensation that whilst both Buffett and Munger gave a real and helpful solution, it used to be additionally an admonishment to the daddy of the kid. Still, an consciousness of the way delayed gratification is the most important part of being successful as an investor is something each saver will have to give a concept to.


(The writer is the founder and CEO of Value Research)


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