Buffett, Munger & Graham: Collection Of Words, Quotes Or Disciplines by Redfield, Blonsky & Co.
The following is a collection of words, quotes or disciplines, which we have come across, and wanted to share with the readers of this site.
November 17, 2014
“The world is infinite.” Brian Lockier 2014
March 27, 2012
“But these ground rules are the philosophy. If you are in tune with me, then let’s go. If you aren’t, I understand. I’m not going to tell you what we own or anything like that. I want to get bouquets when I deserve bouquets, and I want to get soft fruit thrown at me when I deserve it. But I don’t want fruit thrown at me if I’m down 5 percent, and the market’s down 15 percent—I’m going to think I deserve a bouquet for that.” Warren Buffett discussing taking on new investors in his fund.
August 17, 2011
"I save about $5+ a day in coupons. I bring a healthy lunch, nuts, fruits, for ~$2 per day, saving ~$10. Equates to >$5K per year. Future value that." Ronald R. Redfield August 2011
June 8, 2011
"Do the best that you can do. Never tell a lie. If you say you are going to do it, get it done. Nobody gives a shit about an excuse. By the way, those are very useful rules, especially for those in a service business. People are paying for your services with their own money. Return your calls quickly. The other thing is the five-second no. You've got to make up your mind. You don't leave people hanging." Charles Munger
May 13, 2009
"We may congratulate ourselves that this cruel war is nearing its end. It has cost a vast amount of treasure and blood. . . . It has indeed been a trying hour for the Republic; but I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the Republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before, even in the midst of war. God grant that my suspicions may prove groundless." The passage appears in a letter from Lincoln to (Col.) William F. Elkins, Nov. 21, 1864. (Note: There is a debate whether or not Lincoln wrote or said this.)
May 8, 2009
"Value investing is like buying a snowboard during July." Ronald R. Redfield April 2009
“Warren Buffett once wrote that value investing is like an inoculation-it either takes or it doesn’t- and when you explain to somebody what it is and how it works and why it works and show them the returns, either they get it or they don’t.” -Seth Klarman of the Baupost Group
April 3, 2008
"I tell people that buying a house is not the same as buying a house on fire." James Dimon during a Government testimony, explaining why JP Morgan offered $2 per share for Bear Stearns.
March 3, 2008
"If they worry about what stocks will do in any given day, they shouldn't be buying stocks." Warren Buffett responding to question about stock futures being down on the morning of 3/3/08 and how he interprets such.
February 25, 2008
"Charlie and I operated mostly with 5 positions. If I were running 50, 100, 200 million, I would have 80% in 5 positions, with 25% for the largest. In 1964 I found a position I was willing to go heavier into, up to 40%. I told investors they could pull their money out. None did. The position was American Express after the Salad Oil Scandal. In 1951 I put the bulk of my net worth into GEICO. Later in 1998, LTCM was in trouble. With the spread between the on-the-run versus off-the-run 30 year Treasury bonds, I would have been willing to put 75% of my portfolio into it. There were various times I would have gone up to 75%, even in the past few years. If it's your game and you really know your business, you can load up." Warren Buffett 2/15/08
"Over the past 50-60 years, Charlie and I have never permanently lost more than 2% of our personal worth on a position. We've suffered quotational loss, 50% movements. That's why you should never borrow money. We don't want to get into situations where anyone can pull the rug out from under our feet." Warren Buffett 2/15/08
"In stocks, it's the only place where when things go on sale, people get unhappy. If I like a business, then it makes sense to buy more at 20 than at 30. If McDonald's reduces the price of hamburgers, I think it's great." Warren Buffett 2/15/08
October 25, 2007
"Look to your mentors, rather than eliminate them, when you have issues in your life." Ronald R. Redfield cpa,pfs 10/07.
October 16, 2007
"What you have to do in this environment of heavy research and abundance of value players is to be able to analyze and capture the appearance of value, within companies that are herd followed and owned by value investors yet at the same time, when you dig deep, these same companies do not carry typical value traits. Another way of saying this would be to “capitalize when value investors lose sight of the ball, or get lazy.” Ronald R. Redfield cpa,pfs 10/07.
October 15, 2007 Einstein Words
"Concern for making life better for ordinary humans, must be the chief object of science, never forget this when you are pondering over your diagrams and equations."
"I believe in Spinoza's god, who reveals himself in the lawful harmony of all that exists. But not in a god who concerns himself in the fate and the doings of mankind."
In response to a request of using a phrase that Einstein came up with, Einstein allowed his phrase to be used, and sent this note as an explanation as to what the phrase means, "Nature hides her secret because of her essential loftiness, but not by means of ruse."
During 2007, Charles Munger recommended a book on Einstein, by Walter Isaacson. I am in the middle of the book, and came across a very interesting contract that Albert had devised with and was accepted by his first wife (or was it his second, I can not recall. I am not familiar with his further life, as I am still on this chapter of a fascinating book I thought I would share this section, and see if it gives us any insight as to the thought process and personal views of Charlie. I enjoyed Isaacson's book on Ben Franklin as well.
"Einstein's contract with his wife."
"Cold scientific approach combined with personal hostility and emotional alienation to produce an astonishing document.
A. You will make sure:
1. that my clothes and laundry are kept in good order.
2. that I will receive my three meals regularly, in my room.
3. that my bedroom and study are kept neat, and especially that my desk is left for