Warren Buffett MBA Talk - Part 6

Warren Buffett MBA Talk - Part 6

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People & Blogs

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• Warren
• Buffett
• MBA

[jb2134]

I saw a quote from Buffett in a recent interview, it may have been on CNBC or at his last annual shareholders meeting....basically sums up his monster success..

"The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective."

It's a subtle, but very powerful distinction. Many people just don't get it (too brainwashed by modern finance, portfolio theory, etc).

Notice in this MBA interview, how many *simple* things he mentions.

[hardkicka]

This guy is great! He keeps it simple... alot of you punk ass - high strung-soon to be unemployed bankers should take a lesson in humilty from this man!

[jb2134]

@zebbedi A great book is Charlie Munger's "Poor Charlie's Almanack". Its a collection of his speeches through the years. One of his quotes in the first part is, "Take a simple idea and take it seriously". The whole book is basically about finding logical principles that underpin your investing ideas.

Another "simple" investing guru is Jim Rogers. Whenever he speaks its always aobut disarmingly simple ideas and concepts.

[zebbedi]

@jb2134 I completely agree and if you can balance these simple things and tie them to basic logical principles that you clearly understand you are going to inevitably make good decisions.

[beancube2010]

@stayvertical1 It depends whether the simplicity is base on population psychology or it is base on reality. Money can quantify all actual substance because it is just some psychology we have been programmed to trust. Have anyone really spend some to monitor those financial rating institutions. Too many layers of languages are blocking ordinary to understand the reality of those rating standards and they are inherited from those British imperialists' rituals or scams.

[beancube2010]

Naming, mixing, and renaming to confuse investors is how bankers hedge on betting of setbacks on ordinary people. When it becomes so popular, you can only earn money on failure of industry by mingling in disastrous manipulation capitals. Economic terrorists are focusing on big cash flow accounts and cracking what we so-called capitalism free markets. That is an exposed danger and not many will find it surprising the Wall St triggered tsunami will be triggered very often in the near future.

[Zerofire18]

Occam's razor (or Ockham's razor), is the meta-theoretical principle that "entities must not be multiplied beyond necessity" (entia non sunt multiplicanda praeter necessitatem) and the conclusion thereof, that the simplest solution is usually the correct one.

[stayvertical1]

There's an old saying that the simplest answer is usually the correct one. I believe that applies here