Yes. But it is only good saying for the rich. If you are average Joe, you are destined to invest(risk) because keeping cash is just to expensive insurance in a long term.
I know many smart people that are far from poor but more interestingly, buffet should talk about why so many evIL people are rich. No conscience allows him to invest in israhel, APART HEID, JEN O SIDE, sweatshops...
Exactly. I thought for decades, that I was so smart that I could easily make money in financial markets. Unfortunately, my broker agreed to loan me a lot of money... Learnt the hard way to be more risk-adverse, and never play the markets with borrowed money.
False. I'm a 4.0 engineering student. I became curious and addicted to risk. I was curious as most engineers are, how far can you go? Engineering school merely made me laugh at loss and failure. But if I don't fear failure, where will I go?
And nor did he say "smart people get poor". The use of WHY, makes all the difference. This is the reason the layman struggles to represent himself in court. He thinks he understands the apparent simplicity of the sentence when in fact they suffer with the dunning kruger bias. Why Smart People Become Poor (How We Avoid It) is technically accurate in the context of this video.
@@a1dt998 STATEU prohfsr.. ALLWAYSh MAEDH SENSATIH.. Yayeaaayayaaaaa.. Hoewh if they'd all WAHNTh REALH A RICHT. This era was LONGH ON KILLENIUMH, YARHELLINIUMH. LIGHCT .
I remember our headmaster at school joking to parents after handing out academic prizes: "To those parents of children who didn't win prizes, remember that it's the B-grade students who will be employing these prize-winning A-grade students in a few years' time!"
@@corpr8dystopia778 It's more prosaic than that: lots of people have drive and ambition; what differentiates them is luck, and there are simply more B students to be lucky.
In engineering school I found out the most "smart" were actually the dumbest for real world. They were like textbook robots, you change a single thing and their world collapsed. The real smart ones didnt give a F, wouldnt even appear on class.
It's not just about intelligence; it's about financial habits, emotional decisions, and a lack of discipline. Using common sense and sticking to a plan can help avoid these pitfalls.
Main factors of segregation are health, and wealth. With health comes energy, often good looks, and with wealth come relationships, ie insider informations, better opportunities, etc. There are exceptions, of course, but gender, IQ, religion, race, all that comes well after these 2 factors.
I grew up parentless in MS and by my 11th birthday but I knew vesting was the only way I could secure a safe and stable financial future. In my early twenties I started studying Berkshire and invested all my money in Berkshire by my 35th birthday. I grew up poor but I will not die poor.
Warren makes a good point. If you can calculate risk it isn't risk. Life only obeys probabilities in the aggregate. Things don't go bad very far very often but it certainly happens. Mathematics can't predict the future.
Every time I took risks I lost money. Usually I start by making some profit with my investments, then I lose more than I earned. I should have kept everything in cash/bank.
Well documented.. the higher the IQ the less concerned they are with making money. I believe Jordan Peterson said that the wealthiest people are typically about 110 IQ on avg. That seems to be the sweet spot where you're smart enough to work the system, but not so smart you only care about the intellectual pursuit itself.
The higher the iq, the more they pursue achievement, hobbies or knowledge. Something that satiates their minds. They earn more money but they save and invest less.
@@yunoewig3095 Most average people think you need money/financial security FIRST AND FOREMOST before even attempting to pursue risk or interest. On one hand, we kinda bypass that step altogether, for a few reasons. First of all, having security first means risking LOSING that security to become successful; but the same risk without that security can be just as good and it doesn't feel like you're losing if you're starting over, you're just back where you already are. Secondly, we're already asking the kind of philosophical and character-building questions first that many other people don't start asking until AFTER they've become rich, being rich hasn't made them happy enough; and that's where they BEGIN to seek that. We're all taking the same steps, just in the opposite order.
Most geniuses are in the academe or research pursuing their passion. That sht dont make you rich. While “Finance bros” that talk nothing except stocks and crypto have the reputation of being your average obnoxious guy.
"We are never gonna risk what we have and need for what we don’t have and don’t need." => "We'll play by the Kelly criterion." (But psst.: they didn't tell that aloud.)
I'm a plumber making over $100k a year, and I've never invested before but do have a substantial cash saving. I'm thinking about starting a Solo 401(k), but I'm stuck on what to invest in. I've watched a lot of beginner videos, but I still don't know the best way to start. Any real-life advice or tips would be really helpful.
If you are thinking of investing in the stock market and you are not well versed, its advisable to work with a financial advisor who is an expert to guide you through the process. this way you could make more profit with less risk
Working with a financial advisor has been a game-changer for me. They provided invaluable insights and tailored strategies that aligned perfectly with my risk tolerance and financial objectives. With their support, I've seen significant growth in my investments and gained confidence in my financial future.
My CFA SOPHIE LYNN CARRABUS a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I graduated from high school with a 3.4 (out of 4.0) GPA. My best friend was one of our high school’s Valedictorians with a perfect 4.0 GPA. We both went to the same public university where he graduated Summa Cum Laude and I graduated with a 3.1 GPA. He went to law school and chose a career as a Deputy District Attorney, making a decent living but he never received any bonuses or stock options. I worked in private industry for the majority of my career and in my last job I had the good fortune to work for a very successful medical equipment manufacturer who was very generous with their employee bonuses and stock options and I directly benefitted from this. Bottom line: my net worth at age 71 is many times what best friend’s is primarily because of the career path I chose vs. his. He also had a poor understanding of money management and investing whereas I had a very good understanding because I worked in Accounting and Finance for my career. Yet academically he was far superior to me but it didn’t help him in regards to his personal finances.
Not Business, but in Financial & Investment Management, yes! Not the same thing. The creator of a Google or Microsoft or even the first Car back in the day could be considered great in 'business'. Not quite the same thing. But still, this duo could also be considered 'great' in their own right, in Financial & Investment Management.
@@stephenmani8495 Using Google,Microsoft, and Amazon are suriviors bias, and they are pretty much a Monopoly in those industry. These are not a good example for "how to build and run a great business". You don't teach students in a business class on how to replicate the success of Microsoft, because that is nearly impossible. It should be focused on building a businss in an evironment where many other competitors are doing the exact same thing. Like a Resturaunt or a Hotel. Their Business is investment Firm, in a country where thousands of other investment firms exist. Why would you say they are not business?
All are equally important. A dumb person might persistently, consistently, and determinedly try to fit a square peg into a round hole, but it still won't work, lol.
You have oersistence, consistence, determination, edication, intelligence, and egoistic poeople which believe that autocracy from WEST is still better, can kill you immediately. Look at USA - Russia proxzy war from 2008. USA lost war, and killed 750 000 Ukrainian soldiers. For what ? ZERO outcome, 44 - trillions of dept. NO people with money are not smart, Bill Gates or W: Buffet is not smart. The is a lot of smart people killed by this companies owned by "SMART" people.
@@alisher1984 Saying that certain things are more important than intelligence, doesn’t mean you can exclude intelligence completely. You find persistence, consistency, and determination in say many animals, but that doesn’t mean that they get rich.
Do you give away your money to a church? Do you have dogs or any type of pets you must feed & medically maintain? Do you gamble (aka pull tabs)? Do you smoke cigarettes? Do you abuse alcohol? If you do all FIVE of these things you’re not smart. If you do just one of these things, quit!
youre damn wrong, if you inherit rich, as you say, you will never ever get the ability to live and prosper, you become bored and waste all your wealth , because money is relative to how much you have, you morph into stupidity but not doing nothing, not taking risks sitting on all your money, and stupid people will not keep their money, they would be gone and FAST you never realize how fast, when youre bored and stupid
i started investing about 15 years ago. I thought BH was a bit overpriced, i tried to beat WB and i´ve done some horrible mistakes that set me back by a huge percentage. 15 years went by, BH grew 4 or 5 fold while i lost 60% of my money
Because smart people aren't reckless and somehow recklessness keeps getting rewarded. Kind of says something about all those rich people who think they are rich because they are smart doesn't it?
Really simple. Smart people don't take risks. Getting rich is a matter of LUCK LUCK requires risk. Therefore the smart(est) among us (usually) don't get rich.
no being less intelligent does not mean being successfull, they don‘t want you to be clue… it is sad that people glorify this trend that degrees and qualifications are worthless… they build their wealth because people working for were well educated !
Indeed the precise self-concept of our risk and abilities are important, especially emerging events caused by somewhat-totally-not-related things. We cannot predict complex systems, we should caution the false confidence. Good insight to hear, I felt that smart and wise are other type of domain.
Math is only a predictable estimate, but nature is chaos and random, math needs to be readjusted constantly to account for what happens. It can’t predict the future
What is from? I have seen several clips now that all appear to be from this same convention and interview. I would like to Simply watch the entire thing from beginning to end
Smart or not ,my experience says . majority of people overestimate their own capabilities. .. 2nd.. the ability to think bottoms up in life is important...( you have a more grounded approach & more rooted to reality)
yeah cause markets aren't always rational. its like those lads with economic degrees or years in big tech who critisize crypto, they have no idea what they're talking about
Anyone who begins to understand the difference between wealth and money is already set. Anyone who realizes that time ≠money, time = wealth has already won to be honest.
You can give a man a fish to feed him for a day. Teach him to fish and you will feed him for a lifetime. Warren teaches us to fish in addition to giving fish away through charities.
It's enticing to consider purchasing some stocks in this bull run. I'm contemplating investing more than $300k for retirement. While the bull run can generate short-term excitement, i also need long-term investment strategy
It seems like there's potential, but caution is warranted. hence I will advice you get yourself a financial advisor that can provide you with entry and exit points
I agree with you. As an early investor in NVDA, AVGO, ANSS, and PLTR, my financial advisor's advice was incredibly helpful. Over the past 7 years, she has helped me find stocks that did 10x multiple times. With her help, I've grown my portfolio to over a million dollars.
Hey, I'm trying to find a certified one to boost my investments/portfolio, but it's tough online. Can I get a rec from you, since you know about this stuff?
Sophia Irene Powell is the advisr I use and i'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
I agree... He's talking about all the useless Quants employed at banks and hedge funds... Those people could really be making better contribution to human advancement...
I'd have a hard time sleeping at night doing what Warren Buffett did to make his fortune. And maybe he has a little compunction, so he finds a way to making himself the good guy by saying "Oh, some personality trait is why you're not insanely wealthy" rather than you're "not a big enough sociopath" to destroy people on the way to becoming rich.
Not that analytics are bad, but analytical people have a natural bias towards measuring what can be measured and avoiding thinking about that which cannot.
Huh. That must be why the quants have taken over the stock market. As I recall, the analysts were warning people at the tops of some of the biggest investment banks in the world in 2008 and earlier that they were way too overleveraged. It was avarice that killed a lot of these corporations, not analysts. The only reason smart people are poor is because they're more interested in science than selling their souls to the rich banking corporations for Six Sigma (not Three Sigma), which is a really complex science. Which may be why Charlie and Warren didn't want to hear anything about it. If you don't have a Ph.D. in math, physics or engineering, you'll never comprehend it. The people who do this in the real world are very successful at it.
Buffett is referring to smart people with money becoming poor. Of course, smart people in other non financial fields might end up finding revealing things that the people with money (and power) don't want revealed, so they end in jail without means.
Happening in some countries in Europe now because of their mandatory pension plans requiring people to invest 12-17% of their income . Nothing much will change. People seemingly won't even retire earlier.
Margin calls on Wall Street parasites that vulture on the carcasses of good American businesses and criminal offenses to the politicians and consultants that enable their actions every day.
Sir, can you precisely tell how much political influence is required to multiply billions every year? Hope and know every one can not get that advantage of political influence to multiply his penny's.
Love these 2 guys but they claim there's no secret, to which I would disagree. You can't buy it but you might develop some with time, It's called wisdom and it's what these two have managed to demonstrate over their lifetimes.
You never mentioned which top-tier university you graduated from. People that are truly rich don't what others to know. So, you are neither rich nor smart.
Intelligence and Smartness aint the same. I am not intelligent but I am very well smart and currently have liquid of $800k at 32 age and be at 1mn in 2 years time. Being millionaire will give me greatest joy and although for most greed is unlimited, I will ease off after that and accept everything above it as bonus not necessity. Even this realisation requires person to be smart
Statistical methods and modelling have their place in business, but they can’t and don’t predict rare and catastrophic market events. Fundamentally they ignore the possibility of outliers and drive analysts to judge the possible “regular” deviations from the historical mean. In effect they judge market uncertainty and volatility rather than risk.
I know a lot of very smart people making six figures living pay check to pay check for their entire careers, the more they make, the more they spend it’s just the way most Americans are ):
What real investors like Buffet and wannabe investors like the bunch around here should undersrand is that people have personal goals other than getting rich. Fortunately people dream about being a good teacher, a good doctor, a good bus driver, a good janitor, a good parent, and this keeps society running in spite of the parasites.
The two are not opposites. You can also be a good doctor and a horrible parent and spouse for example. As for being "parasites" it is helpful to understand that investments are just delayed consumption with the added benefit of creating jobs and societal wealth. Do you also call squirrels and bears "parasites" because they store calories for the winter?
@@meibing4912 Some bears and squirrels could be considered parasites if they got their fish and nuts by inside information about when fish are going to climb the river or trees are going to produce nuts, or if they manipulate other bears and squirrels to buy rotten fish or nuts they have just before everyone realize those rotten fish and nuts worth nothing. The other bears and squirrels would then be considered suckers, as the calories they accumulate through hard work have to be split with the parasitic bears and squirrels. Good doctors that are bad parents and spouses at least save lives. I am not advocating that everyone be perfect. In my post, I was not even advocating the end of finantial parasitism (in the interest of time, I am doing it now). I was only saying that those primitive, vulgar people that talk about success as a synonym of making money in finantial markets are boring and don't have the slightest idea of move people and keep society functioning. Even worse, they are trying to attract people (new suckers) to a game in which they are kings.
@@meibing4912 Some bears and squirrels could be considered parasites if they got their fish and nuts by inside information about when fish are going to climb the river or trees are going to produce nuts, or if they manipulate other bears and squirrels to buy rotten fish or nuts they have just before everyone realize those rotten fish and nuts worth nothing. The other bears and squirrels would then be considered fools, as the calories they accumulate through hard work have to be split with the parasitic bears and squirrels. Good doctors that are bad parents and spouses at least save lives. I am not advocating that everyone be perfect. In my post, I was not even advocating the end of finantial parasitism (in the interest of time, I am doing it now). I was only saying that those primitive, vulgar people that talk about success as a synonym of making money in finantial markets are boring and don't have the slightest idea of move people and keep society functioning. Even worse, they are trying to attract people (new fools) to a game in which they are kings.
@@meibing4912 Some bears and squirrels could be considered parasites if they got their fish and nuts by inside information about when fish are going to climb the river or trees are going to produce nuts, or if they manipulate other bears and squirrels to buy rotten fish or nuts they have just before everyone realize those rotten fish and nuts worth nothing. The other bears and squirrels would then be considered f00ls, as the calories they accumulate through hard work have to be split with the parasitic bears and squirrels. Good doctors that are bad parents and spouses at least save lives. I am not advocating that everyone be perfect. In my post, I was not even advocating the end of finantial parasitism (in the interest of time, I am doing it now). I was only saying that those primitive people that talk about success as a synonym of making money in finantial markets are boring and don't have the slightest idea of move people and keep society functioning. Even worse, they are trying to attract people (new f00ls) to a game in which they are kings.
personally I wouldn't call people that don't know their own limitations as smart people. they are more like a well trained one trick pony - and the quote for Maslow's hammer is fitting perfectly here.
@@investrepeat Yes he is saying 1% chance of catastrophic failure is too high because if you do this everyday over decades like he has done than you will have thousands of opportunities to fail catastrophically. Law of averages state that even at 1% you will eventually fail. So he will never bet the farm and will always have reserves so he can be ready for when that 1% black swan strikes.
![I.N "HALLUCINATION" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/n5B5q1Hwt_U/mqdefault.jpg)
We are never gonna risk what we have and need for what we don’t have and don’t need.
This is a very well put statement.
This is the main key point, something we can forget when reaching for the last pct
Buffet is the guru of Investing!!
Great quote indeed!
Yes. But it is only good saying for the rich. If you are average Joe, you are destined to invest(risk) because keeping cash is just to expensive insurance in a long term.
I know many smart people that are far from poor but more interestingly, buffet should talk about why so many evIL people are rich. No conscience allows him to invest in israhel, APART HEID, JEN O SIDE, sweatshops...
The smarter you are the safer you need to play.
Learned this the hard way...
I agree. It is more useful to avoid being stupid than being smart
People also overestimate how smart they actually are!@@investrepeat
Exactly. I thought for decades, that I was so smart that I could easily make money in financial markets. Unfortunately, my broker agreed to loan me a lot of money... Learnt the hard way to be more risk-adverse, and never play the markets with borrowed money.
False. I'm a 4.0 engineering student. I became curious and addicted to risk. I was curious as most engineers are, how far can you go? Engineering school merely made me laugh at loss and failure. But if I don't fear failure, where will I go?
Guys, it's a multi-player game, the risk [distribution] shifts with every trade.
Rest in peace Mr. Munger. Thank you.
He did not say that. He said some specific people smarter than him provided a bad risk assessment. Not "smart people get poor" at all.
And nor did he say "smart people get poor". The use of WHY, makes all the difference. This is the reason the layman struggles to represent himself in court. He thinks he understands the apparent simplicity of the sentence when in fact they suffer with the dunning kruger bias. Why Smart People Become Poor (How We Avoid It) is technically accurate in the context of this video.
@@a1dt998
STATEU prohfsr.. ALLWAYSh MAEDH SENSATIH..
Yayeaaayayaaaaa.. Hoewh if they'd all WAHNTh REALH A RICHT.
This era was LONGH ON KILLENIUMH, YARHELLINIUMH.
LIGHCT .
People hear what they want to hear.
Noone would click on that title
@@adaeterno i agree, they wrote whatever would get clicks instead of what the content said
I remember our headmaster at school joking to parents after handing out academic prizes: "To those parents of children who didn't win prizes, remember that it's the B-grade students who will be employing these prize-winning A-grade students in a few years' time!"
Good point, b students will be more motivated
A students report to B students and B students report to C students. Average people with above average drive and ambition are the ones that make it.
@@corpr8dystopia778 It's more prosaic than that: lots of people have drive and ambition; what differentiates them is luck, and there are simply more B students to be lucky.
@@corpr8dystopia778 lol how?
In engineering school I found out the most "smart" were actually the dumbest for real world. They were like textbook robots, you change a single thing and their world collapsed. The real smart ones didnt give a F, wouldnt even appear on class.
It's not just about intelligence; it's about financial habits, emotional decisions, and a lack of discipline. Using common sense and sticking to a plan can help avoid these pitfalls.
Main factors of segregation are health, and wealth.
With health comes energy, often good looks, and with wealth come relationships, ie insider informations, better opportunities, etc.
There are exceptions, of course, but gender, IQ, religion, race, all that comes well after these 2 factors.
This
I grew up parentless in MS and by my 11th birthday but I knew vesting was the only way I could secure a safe and stable financial future. In my early twenties I started studying Berkshire and invested all my money in Berkshire by my 35th birthday. I grew up poor but I will not die poor.
Such deep thinking men. Great to see.
Being "poor" relates to various aspects of life, yet, when many people hear the word poor, money seems to be at the top of their list of assumptions.
Warren makes a good point. If you can calculate risk it isn't risk. Life only obeys probabilities in the aggregate. Things don't go bad very far very often but it certainly happens. Mathematics can't predict the future.
What goes up must come down.
It's not enough to be smart, you need to have the courage to take risks in life.
If you want to be in the 1%, then yeah. You could settle easily into the 10% with smarts and hard work
Take risk lose 90% of time like start up😮
its all about social skills in the end of the day. Tesla is the most intelligent person to ever lived and died poor.
@@zaxmaxlax Its only partially true. There are lots of people with social skills who are poor. Successful people have faith and courage.
Every time I took risks I lost money. Usually I start by making some profit with my investments, then I lose more than I earned.
I should have kept everything in cash/bank.
Well documented.. the higher the IQ the less concerned they are with making money. I believe Jordan Peterson said that the wealthiest people are typically about 110 IQ on avg. That seems to be the sweet spot where you're smart enough to work the system, but not so smart you only care about the intellectual pursuit itself.
That's not a sufficient explanation imo.
The higher the iq, the more they pursue achievement, hobbies or knowledge. Something that satiates their minds. They earn more money but they save and invest less.
@@yunoewig3095 Most average people think you need money/financial security FIRST AND FOREMOST before even attempting to pursue risk or interest.
On one hand, we kinda bypass that step altogether, for a few reasons. First of all, having security first means risking LOSING that security to become successful; but the same risk without that security can be just as good and it doesn't feel like you're losing if you're starting over, you're just back where you already are. Secondly, we're already asking the kind of philosophical and character-building questions first that many other people don't start asking until AFTER they've become rich, being rich hasn't made them happy enough; and that's where they BEGIN to seek that.
We're all taking the same steps, just in the opposite order.
Most geniuses are in the academe or research pursuing their passion. That sht dont make you rich.
While “Finance bros” that talk nothing except stocks and crypto have the reputation of being your average obnoxious guy.
It's not about IQ, it's more about your personality, your family, friends, the country you were born in and what the economy is doing.
The rich people I know aren't smarter than average, they're all just more obsessively focused on acquiring and hoarding money...
That’s me, and I’m a swing trader
Just be a minimalist , then u will have all u need & then u can hoard money from the vultures.
Humility I think is a way of translating it.
First rule of making money: DO NOT lose money.
Reminded me of an ad slogan: "Your dress will serve you for many decades if your husband uses to average against the trend".
And if you do, make sure it's not your own...
Golden advice from old professionals.
"We are never gonna risk what we have and need for what we don’t have and don’t need."
=> "We'll play by the Kelly criterion." (But psst.: they didn't tell that aloud.)
Timely recommendation from YT. Need to keep reminding ourselves of these learnings despite this extremely bullish market in India
I'm a plumber making over $100k a year, and I've never invested before but do have a substantial cash saving. I'm thinking about starting a Solo 401(k), but I'm stuck on what to invest in. I've watched a lot of beginner videos, but I still don't know the best way to start. Any real-life advice or tips would be really helpful.
If you are thinking of investing in the stock market and you are not well versed, its advisable to work with a financial advisor who is an expert to guide you through the process. this way you could make more profit with less risk
Working with a financial advisor has been a game-changer for me. They provided invaluable insights and tailored strategies that aligned perfectly with my risk tolerance and financial objectives. With their support, I've seen significant growth in my investments and gained confidence in my financial future.
@@PatrickLloyd- Could you kindly elaborate on the advisor's background and qualifications?
My CFA SOPHIE LYNN CARRABUS a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
I graduated from high school with a 3.4 (out of 4.0) GPA.
My best friend was one of our high school’s Valedictorians with a perfect 4.0 GPA.
We both went to the same public university where he graduated Summa Cum Laude and I graduated with a 3.1 GPA.
He went to law school and chose a career as a Deputy District Attorney, making a decent living but he never received any bonuses or stock options.
I worked in private industry for the majority of my career and in my last job I had the good fortune to work for a very successful medical equipment manufacturer who was very generous with their employee bonuses and stock options and I directly benefitted from this.
Bottom line: my net worth at age 71 is many times what best friend’s is primarily because of the career path I chose vs. his. He also had a poor understanding of money management and investing whereas I had a very good understanding because I worked in Accounting and Finance for my career.
Yet academically he was far superior to me but it didn’t help him in regards to his personal finances.
Greatest duo in the history of business
Not Business, but in Financial & Investment Management, yes! Not the same thing. The creator of a Google or Microsoft or even the first Car back in the day could be considered great in 'business'. Not quite the same thing. But still, this duo could also be considered 'great' in their own right, in Financial & Investment Management.
@ evidently you don’t known them well and you think they are only stick pickers, that’s not the case at all
@@tommasoscalese - What is a 'stick picker'?
@@stephenmani8495 Using Google,Microsoft, and Amazon are suriviors bias, and they are pretty much a Monopoly in those industry. These are not a good example for "how to build and run a great business".
You don't teach students in a business class on how to replicate the success of Microsoft, because that is nearly impossible. It should be focused on building a businss in an evironment where many other competitors are doing the exact same thing. Like a Resturaunt or a Hotel.
Their Business is investment Firm, in a country where thousands of other investment firms exist. Why would you say they are not business?
Persistence, consistence and determination are more important than intelligence.
All are equally important. A dumb person might persistently, consistently, and determinedly try to fit a square peg into a round hole, but it still won't work, lol.
You have oersistence, consistence, determination, edication, intelligence, and egoistic poeople which believe that autocracy from
WEST is still better, can kill you immediately. Look at USA - Russia proxzy war from 2008. USA lost war, and killed 750 000 Ukrainian soldiers.
For what ? ZERO outcome, 44 - trillions of dept. NO people with money are not smart, Bill Gates or W: Buffet is not smart.
The is a lot of smart people killed by this companies owned by "SMART" people.
@@alisher1984 Saying that certain things are more important than intelligence, doesn’t mean you can exclude intelligence completely. You find persistence, consistency, and determination in say many animals, but that doesn’t mean that they get rich.
I'm not smart and I'm poor.
It's a smart thing that you know.
@@ashwanishahrawat4607 very smart comment
The secret of Life , do nothing but do it well. In the end as Steve Jobs stated who wants to be the richest person in the end of time,
The richest person in the world at the end of time. Advise by Steve Jobs.
Do you give away your money to a church?
Do you have dogs or any type of pets you must feed & medically maintain?
Do you gamble (aka pull tabs)?
Do you smoke cigarettes?
Do you abuse alcohol?
If you do all FIVE of these things you’re not smart.
If you do just one of these things, quit!
They're rich and won't risk losing anything. Just like all old people. Their answer to wealth creation is buy and hold and live to 95 y/o!
And travel on E. Musk express to Mars, and live to the end of time. Enjoy our beautiful ocean planet. # HeroesAtSea.
That's actually the way to go, young or old
Well done sir!
To sum it up: start out rich and you’ll never have to actually take risk or be higher skilled.
youre damn wrong, if you inherit rich, as you say, you will never ever get the ability to live and prosper, you become bored and waste all your wealth , because money is relative to how much you have, you morph into stupidity but not doing nothing, not taking risks sitting on all your money, and stupid people will not keep their money, they would be gone and FAST you never realize how fast, when youre bored and stupid
Interesting how they see highly trained and specialized people as smarter who can do just one thing better than them.
good stuff. I appreciate their common sense
Jim Simons: Hold my beer…
Buffet is 5 times richer than Simons was, but I do get your point too.
i started investing about 15 years ago. I thought BH was a bit overpriced, i tried to beat WB and i´ve done some horrible mistakes that set me back by a huge percentage.
15 years went by, BH grew 4 or 5 fold while i lost 60% of my money
Of course Buffett's attitude to risk is different because it is he and his pals in the government who CREATE the (unquantifiable) risks.
Lmao so true
how could 2 buy more than 50% of the stock each in case of Northern Pacific?
Big christmas with the markets❤❤🎉🎉
Because smart people aren't reckless and somehow recklessness keeps getting rewarded. Kind of says something about all those rich people who think they are rich because they are smart doesn't it?
Recklessness by definition won't always, well in fact most often does not get rewarded.
Fascinating.
Really simple. Smart people don't take risks. Getting rich is a matter of LUCK LUCK requires risk. Therefore the smart(est) among us (usually) don't get rich.
My interpretation: "you can't smash the realistic, analog world into your binary computer model. In economics there's more than fifty shades of grey."
no being less intelligent does not mean being successfull, they don‘t want you to be clue… it is sad that people glorify this trend that degrees and qualifications are worthless… they build their wealth because people working for were well educated !
Super Genius
Indeed the precise self-concept of our risk and abilities are important, especially emerging events caused by somewhat-totally-not-related things. We cannot predict complex systems, we should caution the false confidence. Good insight to hear, I felt that smart and wise are other type of domain.
I don't think they mentioned anything about "Smart People".
They mention high iq people using debt
They don’t rip others off
Math is only a predictable estimate, but nature is chaos and random, math needs to be readjusted constantly to account for what happens. It can’t predict the future
What is from? I have seen several clips now that all appear to be from this same convention and interview. I would like to Simply watch the entire thing from beginning to end
Smart or not ,my experience says . majority of people overestimate their own capabilities. .. 2nd.. the ability to think bottoms up in life is important...( you have a more grounded approach & more rooted to reality)
When was this conference?
Hello, I am just wondering which year of Berkshire's AGM was this clip taken from?
It was taken from AGM some years ago. Cant remember when
yeah cause markets aren't always rational. its like those lads with economic degrees or years in big tech who critisize crypto, they have no idea what they're talking about
Excellent…thank you 🙏🏼♥️
I’m glad you liked it
Anyone who begins to understand the difference between wealth and money is already set.
Anyone who realizes that
time ≠money,
time = wealth
has already won to be honest.
Of course
Don’t take risk. That didn’t need to take half an hour to say.
The question is what does being intelligent even mean? ;)
And on the other hand what about the context, the time and luck people get to live?
He is basically talking about black swan by nassim taleb
Smart people are poor because they want to do the most important thing than making money.
very true
Which brings us to the de facto conclusion
When you distribute your wealth to the poor you are being not clever 😮
You can give a man a fish to feed him for a day. Teach him to fish and you will feed him for a lifetime. Warren teaches us to fish in addition to giving fish away through charities.
@investrepeat maybe you hunt something else with this action
A Postfamous Afterlife
This Richard charitable organization that was the awards smart people help poor
It's enticing to consider purchasing some stocks in this bull run. I'm contemplating investing more than $300k for retirement. While the bull run can generate short-term excitement, i also need long-term investment strategy
It seems like there's potential, but caution is warranted. hence I will advice you get yourself a financial advisor that can provide you with entry and exit points
I agree with you. As an early investor in NVDA, AVGO, ANSS, and PLTR, my financial advisor's advice was incredibly helpful. Over the past 7 years, she has helped me find stocks that did 10x multiple times. With her help, I've grown my portfolio to over a million dollars.
Hey, I'm trying to find a certified one to boost my investments/portfolio, but it's tough online. Can I get a rec from you, since you know about this stuff?
Sophia Irene Powell is the advisr I use and i'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
I'd love to know what those other 6 newspaper clippings have on them.
I agree... He's talking about all the useless Quants employed at banks and hedge funds... Those people could really be making better contribution to human advancement...
Finally I feel seen.
I'd have a hard time sleeping at night doing what Warren Buffett did to make his fortune. And maybe he has a little compunction, so he finds a way to making himself the good guy by saying "Oh, some personality trait is why you're not insanely wealthy" rather than you're "not a big enough sociopath" to destroy people on the way to becoming rich.
Like what as an example?
Not that analytics are bad, but analytical people have a natural bias towards measuring what can be measured and avoiding thinking about that which cannot.
Wealth means superiority over others to those with an inferiority complex. Thats why the are threatened by people who are smarter.
So true
Huh. That must be why the quants have taken over the stock market. As I recall, the analysts were warning people at the tops of some of the biggest investment banks in the world in 2008 and earlier that they were way too overleveraged. It was avarice that killed a lot of these corporations, not analysts.
The only reason smart people are poor is because they're more interested in science than selling their souls to the rich banking corporations for Six Sigma (not Three Sigma), which is a really complex science. Which may be why Charlie and Warren didn't want to hear anything about it. If you don't have a Ph.D. in math, physics or engineering, you'll never comprehend it. The people who do this in the real world are very successful at it.
Yet it was quants who caused the LTCM crash in the '90s.
@@drstalone except that.... I don't think we had quants back in the 90s. Quants are new.
The 1 in 100 risk is far safer if taken in 5 percent increments
Buffett is referring to smart people with money becoming poor. Of course, smart people in other non financial fields might end up finding revealing things that the people with money (and power) don't want revealed, so they end in jail without means.
This is the definition of stupidity or maybe those smart Guys has been ..threatened by the Guys with power
I mean when you put a smart Guy In a difficult situation..like prisons dilemma ..
Just imagine it what would happen to this country economy when most would become millionaires??
This would be ideal. Everyone has enough for a good life unlike some communism where no one has enough.
Happening in some countries in Europe now because of their mandatory pension plans requiring people to invest 12-17% of their income . Nothing much will change. People seemingly won't even retire earlier.
If people have enough to not work, they’re not going to work. Economy would go to shit
@@OakQueso as i wrote people are - not - retiring earlier. I fact we see the opposite in some countries in spite of high mandatory pension savings.
wealth: i need billions to die with nothing. I need billions to live like the poor. Free.
Smart people doesnt get financial I prefer Warren buffett sons lessons along with Warren Buffett when can we enter
What makes you happy?
For these guys - waking up and checking the numbers in their stock portfolio and Swiss Bank Accounts .
Does not appeal to me .
Margin calls on Wall Street parasites that vulture on the carcasses of good American businesses and criminal offenses to the politicians and consultants that enable their actions every day.
Sir, can you precisely tell how much political influence is required to multiply billions every year? Hope and know every one can not get that advantage of political influence to multiply his penny's.
“Have some fudge…”
Randolph and Mortimer
Who would want to spend or moreso, waste your life like Warren Buffett
How is it possible that two people can each own more than 50% of the stock?
Love these 2 guys but they claim there's no secret, to which I would disagree. You can't buy it but you might develop some with time, It's called wisdom and it's what these two have managed to demonstrate over their lifetimes.
I can’t stop laughing and learning from these two people 😂
Luck and legacy privilege outweigh intelligence.
GW Bush was an Ivy grad and US president!
I'm brilliant and rich😊
Good for you, now you can help the less fortunate
You never mentioned which top-tier university you graduated from. People that are truly rich don't what others to know. So, you are neither rich nor smart.
Yeah, but Im better looking ☺
and evidently, insufferable. Have fun being lonely.
@@steveolive9991what are you talking about
Or as the engineers put it. "paralysis through analysis."
so "smart people are poor" because they look at and trust historical statistics instead of being permanently cautious.. that's how i understood it..
Being overconfident will hurt you someday.
Smart people are poor because they do not like to build their success on a failure of others
Jim Simons laughed at these two all the way to the bank.
Intelligent people are poor, smart people are rich...😮
At least some people are smart and poor. What about people like me-dumb and poor? No hope for us! XD
Intelligence and Smartness aint the same. I am not intelligent but I am very well smart and currently have liquid of $800k at 32 age and be at 1mn in 2 years time. Being millionaire will give me greatest joy and although for most greed is unlimited, I will ease off after that and accept everything above it as bonus not necessity. Even this realisation requires person to be smart
When you got nothing you got nothing to lose.
Thats true :)
LTCM
Or Enron (the smartest guys in the room).
@@Amir-je6wl aka arthur andersen err I mean Accenture now
And soon -
Citadel.
They aren't born into multimillionaire's families deeply entrenched in politics and don't have any insider trading information, maybe?
Knowledge and patience is key. The market was different at their time
"Why Smart People Become Poor"
Because they aren't obsessed with rapaciousness and megalomania.
That’s not true
They are supposed to be humble but come off fairly arrogant like they’re smugly better than all these smart guys
Statistical methods and modelling have their place in business, but they can’t and don’t predict rare and catastrophic market events. Fundamentally they ignore the possibility of outliers and drive analysts to judge the possible “regular” deviations from the historical mean. In effect they judge market uncertainty and volatility rather than risk.
Because they weren’t that smart they were just pretending to be smart
I know a lot of very smart people making six figures living pay check to pay check for their entire careers, the more they make, the more they spend it’s just the way most Americans are ):
- มั่วแต่คิด ไม่ทำ และ mechanism ทำเงิน ไม่ใช่การคิด แจกความคิดฟรี
- รูปแบบรายได้ ที่เขาไม่เข้าใจ
What real investors like Buffet and wannabe investors like the bunch around here should undersrand is that people have personal goals other than getting rich. Fortunately people dream about being a good teacher, a good doctor, a good bus driver, a good janitor, a good parent, and this keeps society running in spite of the parasites.
Great point. We saw during COVID just who exactly was keeping the lights on.
The two are not opposites. You can also be a good doctor and a horrible parent and spouse for example. As for being "parasites" it is helpful to understand that investments are just delayed consumption with the added benefit of creating jobs and societal wealth. Do you also call squirrels and bears "parasites" because they store calories for the winter?
@@meibing4912 Some bears and squirrels could be considered parasites if they got their fish and nuts by inside information about when fish are going to climb the river or trees are going to produce nuts, or if they manipulate other bears and squirrels to buy rotten fish or nuts they have just before everyone realize those rotten fish and nuts worth nothing. The other bears and squirrels would then be considered suckers, as the calories they accumulate through hard work have to be split with the parasitic bears and squirrels.
Good doctors that are bad parents and spouses at least save lives. I am not advocating that everyone be perfect. In my post, I was not even advocating the end of finantial parasitism (in the interest of time, I am doing it now). I was only saying that those primitive, vulgar people that talk about success as a synonym of making money in finantial markets are boring and don't have the slightest idea of move people and keep society functioning. Even worse, they are trying to attract people (new suckers) to a game in which they are kings.
@@meibing4912 Some bears and squirrels could be considered parasites if they got their fish and nuts by inside information about when fish are going to climb the river or trees are going to produce nuts, or if they manipulate other bears and squirrels to buy rotten fish or nuts they have just before everyone realize those rotten fish and nuts worth nothing. The other bears and squirrels would then be considered fools, as the calories they accumulate through hard work have to be split with the parasitic bears and squirrels.
Good doctors that are bad parents and spouses at least save lives. I am not advocating that everyone be perfect. In my post, I was not even advocating the end of finantial parasitism (in the interest of time, I am doing it now). I was only saying that those primitive, vulgar people that talk about success as a synonym of making money in finantial markets are boring and don't have the slightest idea of move people and keep society functioning. Even worse, they are trying to attract people (new fools) to a game in which they are kings.
@@meibing4912 Some bears and squirrels could be considered parasites if they got their fish and nuts by inside information about when fish are going to climb the river or trees are going to produce nuts, or if they manipulate other bears and squirrels to buy rotten fish or nuts they have just before everyone realize those rotten fish and nuts worth nothing. The other bears and squirrels would then be considered f00ls, as the calories they accumulate through hard work have to be split with the parasitic bears and squirrels.
Good doctors that are bad parents and spouses at least save lives. I am not advocating that everyone be perfect. In my post, I was not even advocating the end of finantial parasitism (in the interest of time, I am doing it now). I was only saying that those primitive people that talk about success as a synonym of making money in finantial markets are boring and don't have the slightest idea of move people and keep society functioning. Even worse, they are trying to attract people (new f00ls) to a game in which they are kings.
personally I wouldn't call people that don't know their own limitations as smart people.
they are more like a well trained one trick pony - and the quote for Maslow's hammer is fitting perfectly here.
based
1% chance of losing money is too high a risk?
Warren is talking about a chance to lose everything by investing with leverage.
@@investrepeat Yes he is saying 1% chance of catastrophic failure is too high because if you do this everyday over decades like he has done than you will have thousands of opportunities to fail catastrophically. Law of averages state that even at 1% you will eventually fail. So he will never bet the farm and will always have reserves so he can be ready for when that 1% black swan strikes.