Why Buffet doesn't bet on India
Warren Buffett, the world’s second richest person and arguably the biggest individual investor, would not like to bet on India. According to Robert P Miles, who has written three books on Buffett, the renowned investor doesn’t buy or invest in sectors, regions or stocks where investment risks were not clear and visible to him.
Delivering a packed Indiatimes Strategy Summit on Buffett, Miles said Buffett used to invest in companies which remained firm in their business model.
For example, his biggest stakes are in companies like Coca-Cola, American Express, Gillette and Washington Post. ‘‘Coca-Cola tasted the same as it was 100 years ago and occupies the same share of mind even today.’’
Miles explained that Buffett is getting returns from India as major revenues of Coca-Cola and Gillette are generated from international markets. Buffett has not invested in tech stocks as he cannot define their shape in a decade’s time. That’s one of the reasons he hasn’t invested in Kodak. Even though Microsoft’s Bill Gates is his best friend, who constantly seeks his counselling, Buffett has not invested in Microsoft.
Advice to Ambani Brothers from Warren Buffet:
WB’s beliefs: Never do anything in business that you would not want on the front page of your local newspaper by a credible reporter. He believes that integrity is oxygen. If you don’t have that, you have nothing.
Investment rules:
Invest in what you know, and what you understand. Risk is nothing but not knowing what you are doing. During the Internet boom, someone asked WB why he did not change his principles. He said Internet does not change the way people chew gum.
Buffett’s biggest mistake:
He regretted not to have invested in Walmart despite the fact that all the three CEO’s were his buddies.
Buffet CEOs:
In each business that Berkshire Hathway (Buffet’s main investment vehicle) has acquired, there have been no layoffs, no retirements and no rocking chairs. Berkshire CEOs are worth an average $100 million and WB has not lost a single CEO to a competitor.
WB’s retirement:
Buffet says he’d like to retire 5-10 years after his death. He wishes that when people pass by his coffin, they should ask themselves, ‘‘Oh boy, does he look old?’’
Robert P Miles: “Buffet doesn’t invest where investment risks are not clear and visible to him.”
Delivering a packed Indiatimes Strategy Summit on Buffett, Miles said Buffett used to invest in companies which remained firm in their business model.
For example, his biggest stakes are in companies like Coca-Cola, American Express, Gillette and Washington Post. ‘‘Coca-Cola tasted the same as it was 100 years ago and occupies the same share of mind even today.’’
Miles explained that Buffett is getting returns from India as major revenues of Coca-Cola and Gillette are generated from international markets. Buffett has not invested in tech stocks as he cannot define their shape in a decade’s time. That’s one of the reasons he hasn’t invested in Kodak. Even though Microsoft’s Bill Gates is his best friend, who constantly seeks his counselling, Buffett has not invested in Microsoft.
Advice to Ambani Brothers from Warren Buffet:
WB’s beliefs: Never do anything in business that you would not want on the front page of your local newspaper by a credible reporter. He believes that integrity is oxygen. If you don’t have that, you have nothing.
Investment rules:
Invest in what you know, and what you understand. Risk is nothing but not knowing what you are doing. During the Internet boom, someone asked WB why he did not change his principles. He said Internet does not change the way people chew gum.
Buffett’s biggest mistake:
He regretted not to have invested in Walmart despite the fact that all the three CEO’s were his buddies.
Buffet CEOs:
In each business that Berkshire Hathway (Buffet’s main investment vehicle) has acquired, there have been no layoffs, no retirements and no rocking chairs. Berkshire CEOs are worth an average $100 million and WB has not lost a single CEO to a competitor.
WB’s retirement:
Buffet says he’d like to retire 5-10 years after his death. He wishes that when people pass by his coffin, they should ask themselves, ‘‘Oh boy, does he look old?’’
Robert P Miles: “Buffet doesn’t invest where investment risks are not clear and visible to him.”
posted by we_d_living @ Saturday, December 18, 2004
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