What is Digg?79 Comments
- ventralnet, on 11/07/2007, -4/+42good thing I didn't invest in google
- sherwinn, on 11/07/2007, -0/+27This video looks a little old, I'm going to guess it's from the Web bubble era. At that time most internet companies that were valued at billions of dollars did not make any sense. And he was right.
- Sturmur, on 11/05/2007, -0/+16The book he's talking about is 'The Intelligent Investor' by Benjamin Graham last revised in 1973 and still has a extraordinary insight into today's markets.
If you are interested in investing, check out the newest revision with commentary by Jason Zweig, I bought it and it changed how I view investment forever. - hphickman, on 11/04/2007, -13/+24I love how 5min.com has shown how easy it is to spam Digg and get to their front page over and over again with these lame videos
- karltonDance, on 11/06/2007, -1/+11I think he's saying not to invest in it unless you really understand what the company is all about.
- wetmetalthong, on 11/04/2007, -2/+11It *is* good advice, because too many people play stocks like lotto. It's not like that: it's an investment in a company. You are part of it. You wanna make dumb investments? Then invest in cornbean-widgits cause everyone says it's the ticket item to invest in for the minute.
You have to take interest in how it runs, don't just hope you'll hit the jackpot.
However, I would sadly fail his class because I foresaw the potential value of Apple and new the time was ripe to invest when I saw the iPod. Too bad I am a young moron that didn't at the time understand to pay himself before everyone else so that I can invest in my own future and make my money work for me.
Warren Buffet is a damn smart cat. - Humptydank, on 11/05/2007, -1/+10And NBC isn't a television network, it's an ad company.
- etnu, on 11/07/2007, -0/+8You're missing Mr Buffett's point. He's saying (correctly) that there's no easy way to value internet companies, which is the main reason why he avoids investing in them.
I think a big part of this is that this is a very young industry that requires a good deal of domain-specific knowledge, and Mr. Buffett is simply not in touch with it.
Does this mean that Internet companies are bad investments? Clearly not, since anyone who's bought Google at any point since the IPO has gained quite a bit, and eBay, Amazon, Yahoo, etc. have proven to be pretty good investments since the crash.
Basically, don't invest in companies if you don't understand how they work, where their money comes from, and what factors will affect their success. If you don't understand what OPEC is, don't invest in oil companies. If you don't understand how web browsers work, don't invest in internet companies. It's pretty simple. - jonnyeuchre, on 11/05/2007, -1/+9
I guess I'm buying porn from now on... - shakyguy, on 11/07/2007, -0/+7The whole speech: http://youtube.com/watch?v=DfuXKpMFUjc .
- JamJosh, on 11/03/2007, -0/+6The mans a genius when it comes to investing so I'd listen a little more when he gives advice. Sure under that logic you might not have invested in google but you'd also not have invested in the other
- Adrianne, on 11/05/2007, -0/+6I totally read this as "Warren Buffett Buying Socks."
I thought he was holding them up to inspect them in the thumbnail.
I guess this is better.. - Lindane, on 11/03/2007, -1/+6I don't think he meant EVERY internet company. Just the ones with business plans about "leveraging electronic networks to create customer/vendor linkages which increase throughput by identifying opportunities in commercial and industrial processes undergoing change in volatile risk managed environments..." That kind of *****.
- PhantomBantam, on 11/04/2007, -0/+5Too bad I didn't invest in pets.com
- known, on 11/04/2007, -0/+3Invest in businesses and not in markets.
- jonnyeuchre, on 11/04/2007, -0/+3
See, that's why you would do poorly. B/c you see Apple as an internet stock - aydoubleyou, on 11/07/2007, -2/+5Warren Buffet never once purchased tech stocks because he simply doesnt understand how the business works. Why buy stock in something you don't understand?
- Scynet, on 11/04/2007, -1/+4You're both wrong, the correct word is, of course, unuselessful.
- inactive, on 11/07/2007, -2/+4Warren has made a lot, and i mean a lot of mistakes - especially back in the 70s - he would buy all these rust-belt companies because they were cheap - and they were cheap (Nebraska Furniture Mart for example) many of these didn't do anything - but the ones like coke, and procter - and he has more - we're grand slams - he's never sold them - point is - get with a winner and ride the *****.............
also, if you want a good take from a pro about this past year's berkshire annual meeting - check out jeffmathewsisnotmakingthisup.blogspot.com - surf through the archives - he made about 12 posts on his experience to omaha - noclue, on 11/04/2007, -0/+2I don't normally like to flaunt my immense intelligent capacity, but it's actually 'unuselessfulness'.
- jfujita, on 11/05/2007, -0/+2The speech was given in 1998 before the crash. If people would have listened....
- Humptydank, on 11/04/2007, -0/+2What I like most about him is that there's no faster way to piss off a Wall Street guy than to keep pronouncing his name "Warren Buh-fey."
- ekrabs, on 11/17/2007, -0/+2Yes, and thank you for spelling it out for skeptics who didn't quite understand Mr. Buffett's thoughts on that.
- ekrabs, on 11/17/2007, -0/+1I don't know. His fundamental message is not to invest in a business you don't fully understand. Warren Buffett admits he doesn't understand the tech sector all that well. However, that doesn't mean YOU don't understand it, and if you do and are confident that it's a good (long-term) buy, then go for it.
It's also worth noting that one of his best friends is Bill Gates, and I'm sure he understands technology business more than probably many of us on here. However, that doesn't mean he understands it enough for his level of standard to actually invest in it. - outhouseinput, on 11/03/2007, -0/+1In the Dot-Com era, a company with that kind of business plan would be golden.
- ekrabs, on 11/17/2007, -0/+1It's also important to look at this in the context of the fact that he's a long-term, value investor. He follows Mr. Graham's principle of "Don't Lose Money". As such, no tech businesses he knows enough of guarantees that 10 years from now. Again, while many of us are benefiting from the power of hindsight (knowing that Google is doing well, and Amazon survived the .com bubble) and don't have much or any money on the line, real investors have to be able to see such things with some degree of certainty, and do far enough in advance to make a good buy before it becomes one. And if you actually sit down and try to do this, it's not as easy as it looks.
- ekrabs, on 11/17/2007, -0/+1Yes, it's also fair to note that he's had some bad bets as well.
I hero worship Warren Buffett as much as anybody, but I still believe in thinking for yourself. Take what you find useful, and leave the rest. Fortunately, there is much to take from Mr. Buffett's thoughts. - JordanTW90, on 11/04/2007, -1/+2The master
- ekrabs, on 11/17/2007, -0/+1Hehe. Well, actually, he said there is a dual answer.
For most investors, index funds are the way to go... because most of us lack adequate due diligence.
However, if you're willing to put forth the time and energy into it, then diversifying is (surprisingly) a bad idea. As a rule, he himself doesn't diversify, but suggests holding six good stocks are a good enough... but again, so long as you put in your due diligence. - jthomp3120, on 11/03/2007, -0/+1who are the idiots that invested in pets.com anyways?
- davewho, on 11/05/2007, -0/+1that would be unuselessfulnecessitationalisticaliciousness.
- ColonelJessup, on 11/04/2007, -0/+1Stock investing advice from Buffett = YES!
Stock investing advice from diggers = NO! DO NOT TAKE! - JCaptainP, on 11/05/2007, -0/+1His entire speech offers other great advice on a wide range of topics.
http://video.google.com/videoplay?docid=-623130898 ...
My favorite quote is:
Take your first job as if it is the last one. [Meaning, do what you love.] Taking jobs as stepping stones to something better, is “like saving sex for old age”. - joe2100, on 11/05/2007, -1/+2this clip is way too short. anyways, my VMWare and Apple investments are doing quite well.
- Piedramente, on 11/04/2007, -2/+3Brilliant man. No wonder he is worth billions
- MrMacMan, on 11/04/2007, -1/+2warren buffet is still making millions and billions of dollars. blockbuster is taking a huge hit from netflicks by not moving into the internet age fast enough.
you need to recognize that places not on the net still make money. - redfuzzycow, on 11/04/2007, -0/+1i was expecting him to talk about his first pair of stocks
- ukwoodie, on 11/04/2007, -1/+2You can't buy a stock when you are eleven....
- Leomarth, on 11/04/2007, -0/+1I invested in google when it was at $400. However, something that wasn't knowledge to me at the time - because I didn't research - was that google doesn't pay dividends. If I would have known that then, I would have reconsidered.
- takeda, on 11/04/2007, -0/+1He is talking about so called Internet companes.
VMWare and Apple aren't one of them.
Google would probably qalify, but you might notice they're doing everything to be something more than an "Internet company".
Anyway, I think he meant mainly the dot-com-bubble companies, that no one knew what they were for, but they were making profits because they were on "the internet". - madroneDorf, on 11/04/2007, -0/+1Theres no difference in investing 3000 dollars in a company that has a stock price of 300, then there is investing in a comany with a stock price of 30, If three years later the company stock price has grown 5000% you will make the same amount of money if you sell the stock
As for the advice, its pretty good, yea there are a few exceptions if you really understood internet companies (Ebay, Google, Yahoo, Amazon.com, etc seven years ago, but for every one of those there were hundreds of WebVan or pets.com - Zeeeeeeeeeee, on 11/04/2007, -0/+1Buffet and most academics agree that index funds are the way to go. Its one fund which holds (eg.) the top 500 companies. Low fees, less risk, market returns. Buy and hold!
- ekrabs, on 11/17/2007, -0/+1That's an interesting thought, and if you were after dividends, I would agree.
However, it's quite a growth stock, and on top of that, you don't have to pay capital gains taxs on any dividends you would've ended up with. So, that's not bad at all right?
However, all that depends on what your investment goal for the stock is, doesn't it? - TypeEE, on 11/04/2007, -0/+1Did you know you can buy 1 share? which is $300?
- Humptydank, on 11/04/2007, -0/+1NBC makes their money by selling ad space on their primary asset which is a network of television stations. They are named after their primary asset, which is that network.
Google makes their money by selling advertising space on their primary asset, which is a network of Internet properties. They are named after their primary assets, which are those Internet properties. - ronmexico, on 11/04/2007, -0/+1You can have all the charts and info on the planet, it doesn't mean you're making a wise investment necessarily.
- Locke2053, on 11/04/2007, -0/+1Well, yes. NBC's revenue comes from selling viewers to advertisers. You are not NBC's customer, Coke is.
- YoctoYotta, on 11/04/2007, -0/+1Your flaunting is an act of unuselessfulnessisity
- Locke2053, on 11/04/2007, -0/+1If you don't base an investment decision on information about the company, what do you base it on? Tea leaves? Goat entrails? Don't tell me it's based on a product alone, because a company could have a great product that they sell at a loss, eventually going bankrupt and taking the investors' money with them.
- ascott9, on 11/04/2007, -0/+1I'm actually going to Omaha to meet him in April. Well hopefully... my university takes 50 people every two years to go meet him and have lunch with him. Should be a lot of fun. A few years ago they brought him a biography of a local company in Tennessee, well after reading the biography he bought the company. He gave every student one share of his Class B stock and the professor one share of Class A as a founders fee. The company was Clayton Mobile Homes.
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