

Buffet: Saving Sex For Your Old Age - mattjaynes
http://mba.tuck.dartmouth.edu/pages/clubs/investment/WarrenBuffett.html

======
ryanmahoski
Q: _I have worked in various technologies businesses, but I understand that
you do not typically invest in the technology sector. Why is that? How do you
view technology as an individual and as an investor?_

A: Technology is clearly a boost to business productivity and a driver of
better consumer products and the like, so as an individual I have a high
appreciation for the power of technology. I have avoided technology sectors as
an investor because in general I don't have a solid grasp of what
differentiates many technology companies. I don't know how to spot durable
competitive advantage in technology. To get rich, you find businesses with
durable competitive advantage and you don't overpay for them. Technology is
based on change; and change is really the enemy of the investor. Change is
more rapid and unpredictable in technology relative to the broader economy. To
me, all technology sectors look like 7-foot hurdles.

~~~
karzeem
A bit of clarification: Buffett is very big on only going after investments
that are within your "circle of competence"--the domain of businesses you
understand well. He's saying that while there's plenty of money for investors
to make in technology, he avoids it because he doesn't understand the sector.

~~~
kingkongrevenge
Buffet's success has always been based on having loads of ultra-cheap capital
lined up from insurance companies he generally owns big stakes in. He waits
for obvious bargains at times when credit is tight and then acquires big
positions. He is not really an investment guru. He has good connections.

People who do not understand this about Buffet try to extract more lessons
from him than makes sense. The lesson to get from Buffet is "Have very rich
business partners and friends." He got where he is by shaping the playing
field to his advantage, not by having special investment skills and knowledge.

Buffet doesn't avoid technology because he "doesn't understand it." He avoids
technology because ALL he is looking for are temporarily depressed assets that
he has an easier time lining up capital for than others. It's rather
oversimplifying, but he's kind of a one trick pony. The theoretical MO of most
investors is to allocate capital for new business opportunities, and that's
just not what he does.

------
ALee
Buffet doesn't actually tell you to save sex until you're old. The actual
quote from the article is about him talking to a young MBA grad:

"I asked him what he wanted to do for his career, and he replied that he
wanted to go into a particular field, but thought he should work for McKinsey
for a few years first to add to his resume. To me that's like saving sex for
your old age. It makes no sense."

~~~
euccastro
Yes, and the OP didn't mean that, either.

Context that prompted posting this to news.yc (see parent):

<http://news.ycombinator.com/item?id=81196>

------
thomasfl
In other words. Don't save the fun for your old age. Just do it(tm). Now.

------
albertcardona
In similar words: <http://www.monbiot.com/archives/2000/06/09/choose-life/>

