Saturday, May 2, 2009

10) Explain value investing

49 universities came this year to Omaha.



If I taught business school there would only be two course:



How to value a business

How to think about markets



You don't need to value all of them, stay in circle of competence. Market is there serve you not destruct you. you do not need to be genius, in fact it can hurt. You need emotional stability and you need an inner piece with the ability to think for yourself. Its not a complicated game, its simple its not easy. You don't need higher math you don't need law.



CM - your emotional make up is more important than you skill. If you think you havw 160 IQ and you really have a 150 you will be a disaster. I'd prefer a 130 who works within his means.