0:00 [Music]
0:05 in 1942 80 years ago I took
0:09 $14.75 every penny I'd say and I bought
0:12 three shares of City service preferred
0:14 and City service is a pretty wellknown
0:17 name now and then waren Buffett the man
0:20 with a net worth of over $100 billion
0:23 has a story to share here's what he did
0:26 when I was when I was 11 I picked stocks
0:30 I had the whole wrong idea I I
0:33 I was interested in watching stocks and
0:34 I thought stocks were things that went
0:37 up and down and I charted them I read
0:40 books on technical analysis I read I I
0:42 read Edwards and McGee I think that was
0:44 the classic then I hundreds and hundred
0:47 hundreds of pages and I read that whole
0:48 thing over and over again I read
0:53 Garfield RW I read everything and I
0:57 thought the first eight years I thought
1:00 the important thing was to predict what
1:02 a stock would do and predict the stock
1:05 market and then I read Ben Graham you
1:09 know when I was 19 or 20 and I realized
1:12 that that I was doing it exactly the
1:15 wrong way and but didn't hurt that I had
1:19 that background and everything I I
1:21 rejiggered my mind in when I read the
1:25 book The intelligent investor and at
1:27 from that point I never bought another
1:29 stock I bought businesses that happen to
1:33 be be publicly traded but I became an
1:36 owner of a business and I did not I did
1:38 not care whether a stock went up or down
1:40 the next day or the next week or the
1:41 next month or the next year and I didn't
1:43 have any idea what it would do I didn't
1:45 know what the stock market would do but
1:48 I knew businesses to have success in the
1:51 long run you've got to love what you do
1:52 Buffett believes that finding your
1:54 passion and sticking to it is the key to
1:57 success by doing what you love you'll
1:59 have the motivation to keep going even
2:00 when things get tough
2:03 I'm a bright guy who's terribly
2:06 interested in what he does so I've spent
2:08 a lifetime doing it I've surrounded my
2:11 PE myself with people that bring out the
2:16 best in me and you don't need to be a
2:18 genesus in what I do that's the good
2:22 thing about it if I went into physics or
2:24 I a whole lot of other subjects I'm
2:27 being also R but I am in a
2:32 game that you don't need you probably
2:36 need 120 points of IQ you know but you
2:39 but 170 doesn't do any better than 120
2:41 it may do worse probably do worse but
2:47 but uh you don't really need brains you
2:50 need the right
2:53 orientation you know 90% of the people
2:55 prob to figure out the ER but 90% of the
2:58 people that buy stocks don't think of
3:00 them the right way they think about
3:02 something they hope goes up next
3:05 week and they think about the market as
3:06 something they hope goes up and if it's
3:09 down they feel worse I feel better and I
3:10 hope it goes down when I buy it because
3:12 I'll buy more I try to keep my
3:14 competitive exp in a game where I can
3:17 win I do know this when I want to do
3:19 something I always want to do it big I
3:21 put my whole net worth in City service
3:24 preferred you know March 11th
3:28 1942 I have never had less than 80% of
3:31 my money in America business you can
3:33 call them stocks but I see him as
3:35 American Business Buffett's success
3:38 Speaks For Itself by investing in strong
3:40 stable businesses over the long term he
3:42 became one of the richest people in the
3:46 world I I've owned a piece of American Business
3:47 Business
3:49 for at least
3:54 80% at all times in you know I I just I
3:56 don't want to own anything else I I want
3:58 to own a home and you know things my
4:00 family wants and all that but owning
4:02 five homes doesn't mean anything to me
4:05 because I'm be happy in one home and
4:06 there's a certain amount of things that
4:08 go wrong with everything and if I got
4:10 two homes i' I know I've got more
4:12 problems and I don't have more happiness
4:15 I would have to be honestly say that the
4:18 that what makes me happiest is what I'm
4:21 doing what I'm doing I enjoy two things
4:22 about it
4:25 one I know I'll win over time doesn't
4:27 mean I'll beat everybody else or
4:29 anything like that but I I I mean the
4:33 game is very very very easy if you have
4:35 the right lessons in your mind about
4:37 what you're buying I'm not buying stocks
4:41 I'm this is a overwhelmingly American
4:44 Business uh and I'm happy when that's
4:47 happy when that's uh when I'm doing it
4:49 I'm happy when stocks are going down I'm
4:50 happier when stocks are going down
4:53 because I I can buy more of them with
4:55 the same amount of money I'd be happy if
4:57 I was a farmer I'd want Farmland to go
5:01 down uh so I could buy more acreage you
5:04 know if I was I me it just makes sense
5:06 and I'll tell you the second thing I
5:09 really like I like being I like being
5:13 trusted by people and you know I like I
5:15 would rather do what I
5:20 do with Partners than do it sitting in a
5:22 room myself even though I might make
5:24 more money that way I need to know that
5:26 I think the birchway is going to be
5:27 worth more
5:29 money someday down the road not tomorrow
5:32 I want it to go down if I'm buying
5:37 something uh you know and uh I would say
5:41 this uh the world has changed a
5:44 lot since that report was written but
5:47 the world changed a lot in
5:50 2002 years ago Let's Pretend there is no
5:52 stock market let's say I had to buy
5:54 these privately like could buy a farm
5:55 privately like could buy an apartment
5:57 house private they're Investments so
5:59 you're looking to say what can I I do
6:01 with money I've
6:05 saved to put it away so I feel good
6:07 about getting it back later under any
6:10 circumstances but not necessarily on a
6:12 given moment but if I have a farm it's
6:16 going to take me a while but I I it
6:18 is people would be so much better if
6:21 they if they actually didn't have a
6:23 stock market in terms of buying
6:25 businesses but you know and when you're
6:27 buying businesses don't don't call them
6:30 stocks when you're buying businesses
6:32 when you're buying apartment houses
6:34 sometimes when you're buying raw land
6:37 you know all kinds of things there are
6:40 times there are times when you get a
6:42 chance to act and do something really
6:44 intelligent may may happen once every 10
6:47 years or once every 20 years depends on
6:48 what field you're in where you live what
6:51 you know all of that
6:54 but most of the important
6:56 things there's a lot of foundational
7:00 work United States economy
7:03 and it's very easy to look at the
7:04 statistics on it I
7:08 mean more people a greater percentage of
7:09 the American
7:12 population is is
7:18 uh wealthy now or having more income now
7:20 than they've ever had and if you look at
7:23 whether Bank of America give you their
7:25 average deposit I mean you you just look
7:29 at the wealth and that uh and uh that
7:31 doesn't mean everybody's wealthy but it
7:34 does mean relative to any other period
7:38 of time U people have more money now
7:41 they have they have they get mortgages
7:43 at lower rates than they've ever gotten
7:44 so if they want to buy
7:47 buy
7:52 where the bottom 2% in terms of income
7:54 in the United States
8:00 5% and for sure the top 1%
8:01 all live
8:04 better than John de rockerfeller was
8:07 living when I was six years old johy
8:09 rockerfeller was the richest man in the
8:12 world and
8:16 today you can get better medicine better
8:18 education better entertainment better
8:21 transportation you can do everything
8:25 better than he could you can I mean it
8:28 it's astounding that's in my lifetime
8:30 that there if if you want to if you
8:33 wanted to watch a football game you
8:35 still had to go
8:38 there and I can sit there with this big
8:41 screen and they keep showing me the
8:43 replay so that explaining to me what
8:45 happened and everything and maybe
8:47 everybody doesn't have a screen as big
8:50 as mine but damn near everybody has a
8:53 screen or an iPhone or a computer or
8:57 access to one and they have access I
9:01 mean when I was
9:04 born you know the dentist didn't use
9:07 novade there's no country that's done
9:10 what our country's done in
9:13 seven if you go back three of my
9:15 lifetimes you're
9:19 looking are looking at less than
9:22 1% of the world's population closer to
9:25 half of 1% half a 1% of the people in
9:30 the world are sitting in this land
9:33 they don't work harder than people in
9:35 all the rest of the world I mean you in
9:37 terms of hours of unpleasant labor
9:39 everybody's got hours of pleasant labor
9:41 in those days practically they don't
9:45 have they don't come Laden with gold and
9:49 you know they are half of
9:54 1% and they work the same hours they got
9:57 the same IQs they may be a little self-
9:59 selected in terms of Enterprise in terms
10:01 of going across oceans and
10:07 things and fast forward a couple of
10:09 lifetimes and they've
10:12 got 20%
10:16 plus of all the bounty in the world I
10:18 mean that is that is something that has
10:22 worked like nothing just imagine that if
10:25 you gone to anybody constitutional
10:27 Congress and you know in 1789 if you go
10:29 to any one of the representatives there
10:31 there and you said I want to tell you
10:34 what this place is going to look like
10:36 you know in three more of your lifetimes
10:38 you're great great grandchildren great
10:42 great grandchildren yeah are going to be
10:44 flying in the skies they're going to be
10:46 watching sports all over the world
10:47 they're going to be entertained and
10:49 medicine they they'd have hold you off
10:52 to a Lunatic Society when Thomas Edison
10:56 did all the things he did you know he
11:00 made some money but look we better I
11:03 mean we're using it yeah it belongs to
11:07 us and it doesn't if you take what an
11:08 hour of
11:12 Labor delivered to you a 100 years ago
11:15 and what an hour of Labor delivers to
11:18 you now for you and your
