Becoming Warren Buffet

It was a HBO documentary that I recently saw. It was based on true incidents on Mr. Warren Buffet’s life. The documentary’s basic focus was not only on Buffet’s investment choices but also on his personal life. When you generally watch an average movie, you do not carry much with you to home. But on several aspects that documentary is remarkable and will remain close to my heart.

• Investment is a knowledge driven game. Buffet focuses on buying mispricing (undervalued stocks). His decisions are based on fundamentals and long-term perspective. Investment should have a long-term focus as Buffet’s professors like Dodd or Graham taught him. Its not that Buffet is just getting lucky, actually he is good at using his investment class lectures into practice. So, profit making in the market is a game that should only be played by the smart guys with a long-term vision.
• Buffet believes in transforming numbers into simple business models. He bought huge stake in Coca-Cola not because of its higher valuation or speculative prospect or for some technical jargons that were in favor of Coca-Cola but because of its per-bottle margin and its SGR. So, Buffet buys business prospects, values better business models. The second richest guy in the world exactly knows how to keep things very simple.
• Buffet also makes mistakes; but unlike others, he is ready to accept it and move forward. He values reputations than making some quick money.

So, this oracle is actually a knowledgeable guy who knows the numbers in his own way, evaluates the numbers in his own way, takes risks whenever it is necessary and settles for long-term goal. He bets on American big dream and he bets on every firm capable to make this dream reality.