
Warren Buffett’s bio “The Snowball” and lessons for startups - peter123
http://andrewchenblog.com/2009/02/22/warren-buffetts-bio-the-snowball-and-lessons-for-startups/
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tonystubblebine
I think it's interesting that Andrew considers 8 years a long time to build a
company. I think if you look at Buffett, the reason he's so rich is because
those first 8 years were just the beginning.

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transburgh
Im currently reading this book and there is one point that is off with this
post.

"2. Who cares what other people think? Boring businesses can win big"

While I agree with the point, Buffett was very sensitive of what people
thought.

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10ren
I've always heard Buffett emphasizing being rational instead of going with the
crowd - even being contrarian.

But I haven't read "The Snowball" - does he reveal something different about
it there? (e.g. overcompensation for insecurity?)

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transburgh
His mother had emotional issues and he took some verbal abuse as a child. This
led Buffett to go out of his way to be liked by others and avoid confrontation
at all costs.

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10ren
That's in his personal life (and is probably why he is so well-liked); but in
business decisions, he buys when others are selling (and vice versa). He
closed up his first partnership, depressed, because the stock market was
booming. He has described himself as being excited when the market falls. (but
maybe much of this contrarianism comes from his partner, Charlie Munger, and
his mentor Benjamin Graham?)

I think he also supported breaking a strike (at the Washington Post). That
ain't nice stuff, and I think he vowed never to get into that situation again.
But he did get into the first time.

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byrneseyeview
_I think he also supported breaking a strike (at the Washington Post). That
ain't nice stuff_

What's not-nice about that? Letting a cartel exploit its customers seems like
the moral low ground.

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10ren
If you confront strikers, they won't like you - see the context of this
thread.

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patrickg-zill
Buffett deserves a lot of admiration, he certainly built his early cash hoard
with hard work and grit.

However, he was born on an upward slope fed by historical circumstances such
as the destruction of the industrial base in many countries as a result of
WWII while America was mostly untouched; by the growth of fiat currency
unencumbered by being tied to gold or silver; by the increase in the value of
human labor due to (again) WWII and productivity increases of automation.

Now that many of those growth curves have flattened out, I am wary of
following WB too closely - I worry that the lessons of the old economy will
not work in the new, diminished age that is upon us.

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sqs
He's been investing since the 50s. How many times in his long career could
someone have told him "the world is fundamentally different now, and your old
strategies won't work"? Many times.

The fundamental business of Berkshire Hathaway is this: get cheap cash (float)
from the insurance business and use it to buy high-quality companies.
Berkshire's inflow of cheap cash is unrivaled, and it has an extremely good
reputation as an acquirer. In the "new, diminished age," I think those factors
are even more important.

