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Im currently reading this book and there is one point that is off with this post. "2. Who cares what other people think? Boring businesses can win big" While

Im currently reading this book and there is one point that is off with this post. "2. Who cares what other people think? Boring businesses can win big" While I agree with the point, Buffett was very sensitive of what people thought.

ccarpenterg 18y ago
I think the words that are in contrast with boring are exposure, coverage and fashion. Some products are only known in its industry and others are also known by people who consumes media but doesn´t work in the related industry. I work for a processing card (Visa, MasterCard, Amex) company and our products have almost zero coverage and the business is profitable, thought is not a hot thing like Facebook. So not sexy products/markets are good deals too but with little coverage.
10ren 18y ago
I've always heard Buffett emphasizing being rational instead of going with the crowd - even being contrarian. But I haven't read "The Snowball" - does he reveal something different about it there? (e.g. overcompensation for insecurity?)
- triplefox 18y ago
  What I recall from his other writings is that he suggests watching the market, but with different eyes from the crowd. A company with sound fundamentals that suffers bad market news is a buying opportunity. The opposite is harder to find, and the bulk of the profit from his approach comes from time, not timing, so he does not actively look for it.
- transburgh 18y ago
  His mother had emotional issues and he took some verbal abuse as a child. This led Buffett to go out of his way to be liked by others and avoid confrontation at all costs.
  - 10ren 18y ago
    That's in his personal life (and is probably why he is so well-liked); but in business decisions, he buys when others are selling (and vice versa). He closed up his first partnership, depressed, because the stock market was booming. He has described himself as being excited when the market falls. (but maybe much of this contrarianism comes from his partner, Charlie Munger, and his mentor Benjamin Graham?) I think he also supported breaking a strike (at the Washington Post). That ain't nice stuff, and I think he vowed never to get into that situation again. But he did get into the first time.
    - byrneseyeview 18y ago
      I think he also supported breaking a strike (at the Washington Post). That ain't nice stuff What's not-nice about that? Letting a cartel exploit its customers seems like the moral low ground.
      - 10ren 18y ago
        If you confront strikers, they won't like you - see the context of this thread.

ccarpenterg 18y ago

I think the words that are in contrast with boring are exposure, coverage and fashion. Some products are only known in its industry and others are also known by people who consumes media but doesn´t work in the related industry. I work for a processing card (Visa, MasterCard, Amex) company and our products have almost zero coverage and the business is profitable, thought is not a hot thing like Facebook. So not sexy products/markets are good deals too but with little coverage.

10ren 18y ago

I've always heard Buffett emphasizing being rational instead of going with the crowd - even being contrarian. But I haven't read "The Snowball" - does he reveal something different about it there? (e.g. overcompensation for insecurity?)

triplefox 18y ago
What I recall from his other writings is that he suggests watching the market, but with different eyes from the crowd. A company with sound fundamentals that suffers bad market news is a buying opportunity. The opposite is harder to find, and the bulk of the profit from his approach comes from time, not timing, so he does not actively look for it.
transburgh 18y ago
His mother had emotional issues and he took some verbal abuse as a child. This led Buffett to go out of his way to be liked by others and avoid confrontation at all costs.
- 10ren 18y ago
  That's in his personal life (and is probably why he is so well-liked); but in business decisions, he buys when others are selling (and vice versa). He closed up his first partnership, depressed, because the stock market was booming. He has described himself as being excited when the market falls. (but maybe much of this contrarianism comes from his partner, Charlie Munger, and his mentor Benjamin Graham?) I think he also supported breaking a strike (at the Washington Post). That ain't nice stuff, and I think he vowed never to get into that situation again. But he did get into the first time.
  - byrneseyeview 18y ago
    I think he also supported breaking a strike (at the Washington Post). That ain't nice stuff What's not-nice about that? Letting a cartel exploit its customers seems like the moral low ground.
    - 10ren 18y ago
      If you confront strikers, they won't like you - see the context of this thread.