Warren Buffett is really someone worth listening to. This is a short talk he gave to MBA students and then he answers questions for over an hour. I think he is speaking at the University of Florida in 1998.
Here is a great quote to remember as you invest (from part 2): “To make money they didn’t have and didn’t need, they risked what they did have and did need. And that’s foolish.” That goes for anyone I think. He was talking about the geniuses behind Long Term Capital Management (and the collapse about a decade ago – for those of you that think finance people risking serious harm to the economy for their personal gain is something new, it isn’t). You can read a good book about Long Term Capital Management’s fail: When Genius Failed.
Related: Warren Buffett’s Annual Report – Great Advice from Warren Buffett – Misuse of Statistics, Mania in Financial Markets – Investing Books
“take a job you love.”
Another that if you listen to him at all you already know invest he invests businesses he can understand with honest and able leadership and a “moat” around the business. He wants a business that is protected from competition by a barrier (moat).
“I don’t want to buy any stock where if they closed the New York Stock Exchange tomorrow, for 5 years, I won’t be happy owning it… your not buying a stock you are buying a part ownership in a business.”