Learn to invest with Buffett

Chapter 74

Chapter 12 Section 5 Investing with eyes closed
For every investor, choosing the right investment vehicle is very important.

--Warren Buffett
"In my opinion, Disney and the Metropolis are a match made in heaven. Even if there is no chance meeting in Sun Valley that day, the two parties will still be combined. It's just that if I happened to meet Michael who was rushing to the airport on Wildflower Avenue that day, this The entire merger may not be completed so quickly and smoothly.

"Here I want to give special mention to Murphy. In short, Murphy is one of the best managers I have encountered in my investment career. In addition to his excellent management characteristics, he also Equally equal in character, he was an eminent friend, father, husband, and citizen who, in most cases, did not hesitate to choose the latter when his personal interests conflicted with those of his shareholders. When I mention that I like to work with the kind of managers I want to be my son-in-law, son-in-law or executor, Murphy is, of course, the best example I can cite.

"If Murphy decides to start another business, don't bother to study its feasibility, just invest with your eyes closed, and he will definitely not be so stupid as to sell 1/3 of the Metropolitan shares for 6.35 million like I did the year before last. Dollars, those shares were worth more than $12.7 billion after the merger with Disney.”

Buffett mentioned above that Murphy has excellent management characteristics, if he does not need to study hard when investing, and will not make stupid mistakes.He explained a principle of simple investment, but investors should pay attention to that it is Murphy who invests with his eyes closed, not just anyone. He has the excellent qualities of an excellent investor, and he already has many The knowledge base serves as a foreshadowing.

For example, at 1995:7 p.m. on July 14, 1, when Disney President Michael Eisner was walking on the Wildflower Avenue in Sun Valley, Buffett happened to walk from Herb Eisner on the same street. Allen (Herber Allen) left a lunch at his home and was on his way to a golf club with Tom Murphy.It was also that morning that Michael gave a pretty good speech about Disney, and after the speech, Buffett met him on the street and greeted Michael, and they had a short conversation, in which they talked about Disney and the big The possibility of merging the metropolis, the two sides discussed very happily, and finally Michael and Buffett waited for Murphy's arrival together, until a few weeks later, the two sides reached an agreement, after three days of continuous negotiations, finally finally A deed of merger was drawn up.

Investment motto:

Many investors think that many masters talk about "simple investment" and "investment with eyes closed". In fact, investors only understand part or more superficial things.In fact, behind the simple investment, it takes hard work and wisdom.Its deep meaning requires a thorough analysis of the characteristics, management, growth and other elements of the enterprise in advance within one's own circle of competence.Then the investment decision made seems to be easy and happy by others, but in fact, if there is no previous analysis and reasoning, it is likely to become a "random investment", so investors should pay attention to , is not to invest without thinking, but to make a reasonable decision through correct thinking and analysis.

(End of this chapter)