To invest successfully, you need not understand beta, efficient markets, modern portfolio theory, option pricing or emerging markets. You may, in fact, be better off knowing nothing of these. That, of course, is not the prevailing view at most business schools, whose finance curriculum tends to be dominated by such subjects. In our view, though, investment students need only two well-taught courses - How to Value a Business, and How to Think About Market Prices.
Interpretation
True investment success is more about understanding businesses and market prices than complex theories.
Warren Buffett emphasizes that successful investing does not require a deep understanding of complicated financial theories or metrics. Instead, he argues that the essential skills for investors are learning how to value a business accurately and thinking critically about market prices. This perspective challenges the traditional focus of finance education and suggests that practical knowledge is more valuable than theoretical expertise.
In practice
Use this quote in a finance class to highlight the importance of fundamental understanding over complex theories.
I have no views as to where it will be, but the one thing I can tell you is it won't do anything between now and then except look at you. Whereas, you know, Coca-Cola (KO) will be making money, and I think Wells Fargo (WFC) will be making a lot of money and there will be a lot - and it's a lot - it's a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that.
If the world couldn't see your results, would you rather be thought of as the world's greatest investor but in reality have the world's worst record? Or be thought of as the world's worst investor when you were actually the best?
Cash never makes us happy, but it's better to have the money burning a hole in Berkshire's pocket than resting comfortably in someone else's.
I think you should read everything you can. In my case, by the age of 10, I'd read every book in the Omaha public library about investing, some twice. _x000D_ You need to fill your mind with various competing thoughts and decide which make sense.
The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer.
One’s objective should be to get it right, get it quick, get it out and get it over. Your problem won’t improve with age.
I hope so. God, I've practiced so much that I you don't want to be worse five years later. I feel I have a great game today. I know how hard it is to pull off those great shots, and I know how easy it is to miss, so I'm more aware of these things. But I'm so happy I'm at the age I am right now because I had such a great run and I know there's still more possible.
He was at a starting point which makes many a man's career a fine subject for betting, if there were any gentlemen given to that amusement who could appreciate the complicated probabilities of an arduous purpose. . . .
There is no evidence that success in business will make us happy people or allow us to have happy families.
There comes a special moment in everyone's life, a moment for which that person was born. That special opportunity, when he seizes it, will fulfill his mission - a mission for which he is uniquely qualified. In that moment, he will find greatness. It is his finest hour.
In the end, one has to feel lucky that things fell out O.K. I've felt that all the years I've been writing plays.
Winning or losing, it's always something special and something you'll remember, even more so when the match was as dramatic as it was today. It's even more memorable when I see my kids there with my wife and everything. That's what touched me the most, to be quite honest. The disappointment of the match itself went pretty quickly.
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