Levils

Just a rabbit building his way up.
Money • Business • Freedom

[Levils @builtinlevi]

@Benderxxx7 Couldn't have put it better

[Levils @builtinlevi]

Warren Buffett bought his Omaha house for $31,500 in 1958.

He was 28 years old.

59 years later, at 86, Judy Woodruff asked him what made him happy.

Buffett had been on 400-foot yachts and had spent time around people with 10 homes.

But he was still living in the same house.

"If I could spend $100 million on a house that would make me a lot happier, I would do it."

He just couldn't imagine one.

"For me, that’s the happiest house in the world."

It had memories. People came back. It was where he lived with people he loved.

"I am doing what I love to do with people I love. And it doesn’t get any better than that, Judy."

He bought the house for $31,500.

Six decades later, he still didn't think $100 million could buy him a better one.

[Reid @reidgrows]

https://t.co/YF5JtEIvDR

[Levils @builtinlevi]

@mrcsxbt yes, he has lived in it his whole life

[Levils @builtinlevi]

@limalemonnn How we miss his wisdom

[Levils @builtinlevi]

@mrcsxbt an interesting article

[Levils @builtinlevi]

@v_nefodov 🙌

[Levils @builtinlevi]

in 2016, 85-year-old warren buffett was asked why the modern economy creates enormous fortunes for some people while leaving others far behind.

buffett went back more than a century to explain it.

on a farm, he said, a highly talented person could not produce dramatically more than someone with average ability because there were only so many tools available to multiply individual output.

then came the factory.

buffett used ford’s assembly line as an example of what changed. people could produce much more, but the difference between the most talented worker and the least talented worker was still relatively limited by the machine and the process around them.

the modern economy is different.

"we’re in an economy where specialized talents bring incredible sums."

technology allows certain skills to reach millions of people at almost no additional cost, which means someone who is exceptionally good at a specialized task can now create far more economic value than was possible in the past.

buffett said the result is a system that can produce extraordinary rewards for certain kinds of talent while offering far less economic value to people whose skills are easier to replace or automate.

the change isn't simply that some people became smarter or more talented.

the economy became much better at multiplying the output of the people with the right skills.

buffett's full explanation is in the video below.

[Reid @reidgrows]

https://t.co/YF5JtEIvDR

[Levils @builtinlevi]

@BrokeSmart Good article.

[Levils @builtinlevi]

@shukshln yep

[Levils @builtinlevi]

@reidgrows 🙌

[Levils @builtinlevi]

@reidgrows averaging down a position is a good option

[Levils @builtinlevi]

@BrokeSmart yea

[Levils @builtinlevi]

in 2015, 60-year-old howard buffett explained what made his father different from most investors: warren was willing to wait 20 or 30 years for an investment, while most people wanted to make a buck today.

howard had watched this approach up close for most of his life. his father could buy a good business, understand what he owned, and then leave it alone for years without needing the stock price to keep moving in his favor.

"everybody wants to get rich quick, everybody wants to make a buck today."

that patience was not accidental. howard said his father understood what he was buying, knew what could go wrong, and was willing to accept temporary losses when he believed the long-term outcome justified them.

he remembered one example involving a newspaper strike, where warren was able to calculate when he would start losing money, how much the loss could be, and whether that price was worth paying to get the situation resolved.

the calculation came first.

the patience came after.

howard also explained that his father did not need every investment to work immediately. if he believed the business was sound, he could wait while everyone else was looking for the next opportunity.

that difference sounds simple.

20 or 30 years versus today.

but most investors are competing against a clock of weeks and months, while buffett built his process around years and decades.

the full howard buffett interview is in the video below.

[Reid @reidgrows]

https://t.co/YF5JtEIvDR

[Levils @builtinlevi]

@limalemonnn Even his own children couldn’t do it

[Levils @builtinlevi]

@limalemonnn Beautifully put. Your friend clearly knows his way around philosophy

[Levils @builtinlevi]

@batagonx That’s the core of Belfort’s view: if an asset doesn’t produce anything, he has a hard time seeing the value in it. That’s just how he approaches investing

[Levils @builtinlevi]

in 2011, 80-year-old warren buffett explained why he would rather own every acre of farmland in america than all the gold in the world.

buffett asked the audience to imagine putting all the gold ever mined into one cube, roughly 67 feet on each side. you could climb to the top of it, look out over the whole pile, and, as buffett joked, feel like “king of the world.”

then he pointed out the problem.

you could fondle it, polish it, look at it, move it around, but the gold would still be sitting there. it wouldn't produce food, generate earnings, pay dividends, or create anything for its owner while they waited.

that was the distinction buffett cared about.

for roughly the same amount of money, he said you could buy all the farmland in the united states, ten companies the size of exxon mobil, and still have about $1 trillion left over.

the farmland would keep producing crops. the businesses would keep generating profits. you could hold them for years and still receive something from owning them, even if the market stopped quoting their prices.

buffett wasn't saying gold could never go up. his point was that the return depends on finding someone willing to pay more for it, while a productive asset can keep producing value whether or not anyone is standing there offering you a new price.

that idea appears again and again in how buffett thinks about investing: understand what you own, focus on what it produces, and don't confuse a higher market price with a better business.

the article below breaks down warren buffett’s principles - the ideas he kept returning to throughout his career, from investing and business to money and life.

[Reid @reidgrows]

https://t.co/YF5JtEIvDR

[Levils @builtinlevi]

@AurenPro The part that really stuck with me: most people never think of their income as an asset. And if your paycheck and portfolio depend on the same thing, you’re taking more risk than you realize