Plenty of wisdom from Buffett in this post by professor David Kass, including:
- “If you know who someone’s heroes are, then you will know how they will turn out.”
- “Borrowed money causes more people to go broke than anything else. Charlie Munger has said, smart people ‘go broke from liquor, ladies and leverage.'”
- Advice from Buffett’s partner, Charlie Munger, on taking precautions now to avoid mishaps later: “an ounce of prevention is worth a ton of cure.”
- A good sales tactic: “Some Geico employees have 4 times the productivity of others (selling policies) over the phone. ‘When talking to someone on the phone, put a photo of the person you love most on your desk and talk in the way you would talk to that person.’”
- Don’t become rich twice: “Anyone who has become rich twice is dumb. Why would you risk what you need and have for what you don’t need? If you are already rich, there is no upside to taking on a lot more risk, but there is disgrace on the downside.”
- In reference to bank CEOs who have not responded quickly to problems within their organization (e.g. recent events at Wells Fargo): “One should face up to a problem fast. ‘Get it right, get it fast, get it over.’”
Skim through the rest of the post to find other nuggets you may want to pick up.