Shareholder: Being a
young person without an ability to code or build robots, I don't know
technology. If you were 23 years old, what non-tech industry would you
start a business in?
Buffett: I'd probably do
just what I did at 23. I would go into the investment business and I
would look at lots of companies, talk to lots of people, and learn what I
could about different industries. One thing I did when I was 23: If I
got interested in a coal business, I'd go and see the bosses of eight or
10 coal companies. I'd ask a lot of questions.
One question I would always ask: If they
had to put all their money in a company in the industry and go away for
10 years, which would it be? And if they had to sell short under the
same conditions, which company would it be, and why? And if I talked to
everyone in the industry like that, I would know more about the industry
than anybody.
There's lots of ways to learn about the
economic characteristics of companies, such as reading, personal
contact, etc. ... But you need a real curiosity about it. It really has
to turn you on. And what could turn you on more than asking questions
about, for instance, coal companies? [Laughs] And in my case, the
insurance industry was particularly interesting, and perhaps you could
become well equipped to run such a business some day. If you just keep
learning things, something will come along that will be very useful. But
you have to be open to it.
Munger: Try the trick
that Larry Bird used when he wanted a new contract. He asked all agents
what agent he should hire if he didn't hire that agent, and when they
all came up with the same second choice, he went with that second
choice.
Buffett: We did the same
thing for Salomon. I called in eight or 10 of the managers. We had to
open for business, and I had to have someone to run the place. I said,
"Who besides you would be ideal, and why?" And one guy told me no one
could compare to him. He was gone within a few months [laughs], but it's
not a bad system to use. You could really learn a lot just by asking.
Sounds like a Yogi Berra quote, but it's true. People like to talk. You
just have to be open to it, and you will find your spot. You may not
find it the first day of the week, but you'll find what fascinates you. I
found it when I was 7 or 8. Sometimes it'll take a while, but you'll
find it.
Munger: It's a very
competitive business. When I was at Cal Tech and studied thermodynamics,
there was a guy who was tremendously talented at thermodynamics. I
realized that I'd never be as smart as him in that field. I tried other
industries with the same results, so I just kept doing that until I
ended up here.
Buffett: I had a similar experience with athletics.
Read more: http://www.fool.com/investing/general/2014/05/25/what-would-warren-buffett-do-if-he-was-23-years-ol.aspx#ixzz32xv6IFq0
No comments:
Post a Comment