Buffett's methodology was straightforward, and in that sense 'simple. ' It was not simple in the sense of being easy to execute. Valuing companies such as Coca-Cola took a wisdom forged by years of experience; even then, there was a highly subjective element. A Berkshire stockholder once complained that there were no more franchises like Coca-Cola left. Munger tartly rebuked him. 'Why should it be easy to do something that, if done well two or three times, will make your family rich for life?
We were talking of DRAGONS, Tolkien and I In a Berkshire bar. The big workman Who had sat silent and sucked his pipe All the evening, from his empty mug With gleaming eye glanced towards us: "I seen 'em myself!" he said fiercely.
In 1945, peace broke out. It was the end of the Joke. Joke warfare was banned at a special session of the Geneva Convention, and in 1950 the last remaining copy of the joke was laid to rest here in the Berkshire countryside, never to be told again.
If you have the opportunities of Berkshire, an investment in gold is dumb.
At Berkshire Hathaway we do not like to compete against Chinese manufacturers.
I'm proud to be associated with the value system at Berkshire Hathaway; I think you'll make more money in the end with good ethics than bad.
We bought a doomed textile mill [Berkshire Hathaway] and a California S&L [Wesco] just before a calamity. Both were bought at a discount to liquidation value.
I bought a company in the mid-90s called Dexter Shoe and paid $400 million for it. And it went to zero. And I gave about $400 million worth of Berkshire stock, which is probably now worth $400 billion. But I've made lots of dumb decisions. That's part of the game.
