“Warren Buffett doesn't think about spending $100,000 as just $100,000 today. Instead, he calculates what that money would become if invested at 20% annual returns over 20 years—millions of dollars in opportunity cost.”
About Warren Buffett
Warren Edward Buffett ( BUFF-it; born August 30, 1930) is an American investor and philanthropist who is the chairman and former CEO of the conglomerate Berkshire Hathaway. As a result of his success, Buffett is one of the best-known investors in the world.
Relevant Clips9
- Teaching
How Buffett Calculates the Real Cost of Spending
Warren Buffett doesn't think about spending $100,000 as just $100,000 today. Instead, he calculates what that money would become if invested at 20% annual returns over 20 years—millions of dollars in opportunity cost.
- Teaching▶ 14:33
Niche Depth Creates a Natural Moat Around Your Market
The more niched you are and the more of an expert you are on that niche, the more you have what Warren Buffett calls a natural moat around your castle with natural protection of your market
- Teaching
Warren Buffett Calculates Opportunity Cost Over Decades
Warren Buffett calculates opportunity cost over decades, thinking about what $100,000 will become at 20% annual returns over 20 years rather than the immediate purchase price
- Teaching▶ 27:28
Success Comes from Testing Assumptions in the Real World
Success comes from questioning your assumptions and testing them in the real world, not from believing you're always right
- Teaching▶ 2:52
Use the Mr Market Metaphor to Simplify Business Decisions
Use Warren Buffett and Ben Graham's 'Mr. Market' metaphor to simplify complex business and market decisions
- Teaching
Evaluate Opportunities Against Alternatives Not in Isolation
Opportunity evaluation requires comparing against other possibilities, not making isolated yes/no decisions
- Teaching▶ 0:41
Preparation Required to Seize Rare Opportunities
Great opportunities are infrequent and require preparation to recognize and execute when they arrive
- Quotable▶ 14:33
Niche Expertise Creates a Warren Buffett Moat Around Your Castle
The more niched you are and the more of an expert you are on the niche that you're working on, the more you have what Warren Buffett calls a natural moat around your castle.
- Quotable▶ 27:28
Warren Buffett Constantly Asks: How Might I Be Wrong
Warren Buffett, the most successful investor in history... what he's constantly doing is saying, you know, I'm probably wrong. How can I check and see if I'm wrong?