loving buffett
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Joined: 06 Dec 2004
Location: Toronto
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| A Value Investor Learned From Buffett But Somewhat Different |
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A Value Investor Learned From Buffett But Somewhat Different From Buffett
Am I a value investor? I ask myself. The answer is yes after a careful thinking. As value investors, the greatest teacher is Buffett. But, teacher Buffett has his shortcoming too, his classic shortcoming is obvious by losing the investing chances in the wave of communication of human being. As the greatest investor in human history, Buffett has made a huge success, we do not qualified to exaction of him. But, as investors who believe value, no matter what to say, we can not disregard the investing chances in the wave of communication.
For uniting the experiences of Buffett with similar investing chances in the wave of communication, I try my best to give them a deep thinking. The way of Buffett is surely a successful investing way, the problem is that the investing conditions now and in the future are similar to what his success depending on? His method is value investment, but is not all of value investment. His basic method is to master the book value of a company, which contains the history of its book value and its tendency in the future. His other methods are aimed at making sure of the book value and its tendency. If we use his investing method mechanically, it is obviously not enough to find out similar investing chances in the wave of communication.
What is the chance in the wave of communication? It is a breakthrough of human civilization, a huge change of human communication and human social structure, a huge hope and imagination about human future. Facing so huge investing chances, if the price is not too high, if the investing bubble do not form, human will not be human, human will like animals, plants and even materials without life. The reason human is human, is that human can think, have hope, and own passion about future.
Value is not only money in the book, it much more depends on the creative activities of human being, depends on human thinking, hope and passion. If someday the earth all becomes gold, but human who live on it lose their creative thought, hope and passion, any kind of value is there in this world? Therefore, we as value investors choice company, not only depend its book value, the much more important is penetrating such companies which will play main mission in the development of human civilization in the coming time, although such companies are minority. However, value investors should realize that just the minority play major roles in the progress of history. Ford at the beginning of car industry revolution, Microsoft and Intel at the beginning of communication revolution, are models of such companies.
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