Author Alice Schroeder mentions a story that aptly describes Warren Buffet’s type of personality, which took place when a friend of Warren Buffet’s stayed in Mrs. Graham’s guest room and came out in surprise to tell Buffet that she had a true Picasso. in the bathroom. Buffet told her that he had just noticed that free shampoo was available in the room. Other stories are about the other power players like Bill Gates and Akio Morita, in fact Warren Buffet still considers Bill Gates as his soul mate.
Right book at the right time
The book The Snowball: Warren Buffett and the Business of Life could not have hit the publishing scene at a better time. His prediction that derivatives were weapons of mass destruction was spot on and the most accurate prediction (should we say prophecy) of global economic collapse. He was already aware of the dangers of government intervention and the rescue of failing banks by financial institutions.
not a perfect book
The book is not without problems. The first point is that it is an authorized biography (nothing sensationalist can be expected) and the second point is the length of the book: it is simply too long (but so is the life of Warren Buffet and his illustrious career). . Despite these negatives, the book is absorbing and you will be forced to set aside some time to read it. The author of the book, Alice Schroeder, has been a financial analyst, so she knows what she is talking about as she writes the book.
internal business
The book The Snowball: Warren Buffett and the Business of Life it also focuses on the internal business going on inside Warren Buffet’s brain. The basic principle followed by Warren Buffet is to follow his internal scorecard instead of playing to the gallery. Other Wall Street tycoons were disgraced when things went wrong for them, Warren Buffet is different in that he didn’t fall prey to wealth traps even if he was making all the money in the world. Even when he bought a private jet, he called it The Indefensible, which aptly describes the feeling he might be experiencing when he bought it. He is not sophisticated and he proudly (and deliberately) is. He only eats cherry Coke, French fries and hamburgers. His rules for investing money are very simple, he avoids getting into debt and remains invested in the market for the long term.
Why just one Warren Buffett?
You may wonder if these things are so simple, why is there only one Warren Buffet? The answer is: to become Warren Buffet, you must have a fiercely independent mind, and not everyone can maintain this frame of mind all the time. He didn’t participate in the dot com boom because he didn’t understand how these companies did business. Now we all know the obvious, he was right.
Anyone can stick to the basics
Surely anyone could do that (stick to the basics), so why is there only one Warren Buffett? The answer is that it requires a determined independence of mind that eludes other investors. Not that he can easily convince economists all the time. A group of economists proposed the Efficient Market Hypothesis and said that according to the theory, Warren Buffet simply could not exist. His core belief was that individual investors could not consistently outperform the market. The theory was modified when Buffet pointed out that eight of his other classmates were also doing just as well, being taught by the same teachers.
