This Warren Buffett video is taken from a question and answer session that he made to a group of MBA students at the University of Florida years ago.
Watching the speech in its entirety is very captivating as he is an incredibly switched on character but yet still incredibly humble and funny throughout.
His understanding and communication of the value investing concepts is top notch and has inspired me to read The Intelligent Investor by Benjamin Graham; a book i have been meaning to get to for a while now.
I found the particular Warren Buffet clip above particularly interesting as it really outlines the value investing concept that you shouldn’t really care whether a stock goes up or down on any particular day if you truly believe in the company long term.
This approach of value investing to achieve dividends from valuable companies rather than day to day capital gains trading is likely to be a very appealing strategy if the markets around the world are to fall into recession in the coming months as companies are likely to become undervalued in the market.
As outlined by Buffett in the video, bear markets keep stock prices low and provide the best possible opportunity for profitable investing (not to mention cheaper products in the marketplace).
This is the first of many blogs to come on value investing as i begin Mr Graham’s Intelligent Investor and i will also be posting more excerpts from this 90 minute speech (that i personally video edited and youtubed!!) so make sure you add my RSS feed below.
For more on Warren Buffett’s speech, See Tom’s consulting blog or click here to read more about the differences between Fundamental and Technical Analysis or here to read about Charlie Munger’s successful investing advice, worldly wisdom and your circle of competence.