"You don't have to hire out your thinking if you keep it simple". Mr Munger smells of wisdom
@andylib
Жыл бұрын
- „A mine is a hole in the ground owned by a liar“ - „Never ask the barber if you need a haircut“ Very insightful clip!
@MrDuds1984
Жыл бұрын
Consultants
@Jerry.anthony.c
Жыл бұрын
1:45 - "We rather multiply by 3 than by π" 😂😂👏🏽 Smart. 2:49 - "You don't have to hire out your thinking if you keep it simple" 4:08 - Avoid being wrong. 4:30 - Sales. "Don't ask the barber if you need a haircut"
@florianhaffner3910
Жыл бұрын
I don't touch Nike cause I am annoyed by their woke agenda
@lewjg2933
Жыл бұрын
It feels like almost every company has a woke agenda these days unfortunately.
@B21_raider
Жыл бұрын
Be woke become broke
@oakshade5608
Жыл бұрын
Ultimately it was a big mistake for them to buy Dexter Shoe, in contrast to what is implied in the video.
@chetanrastogi4367
Жыл бұрын
Just goes to show even the best make mistakes. But a few good decisions can overcome those :)
@noeldown1952
Жыл бұрын
When you get so much right, you can afford to make mistakes that would bankrupt anyone else. This is a great example of that.
@moqas186
Жыл бұрын
It’s up more than 3000% since he dised Nike, while the shoe business that he bought or said liked and understood is nowhere to be found.
@xhagast
Жыл бұрын
They just didn't understand what Nike was doing so they didn't get involved. If they had they might have destroyed the company.
@dickfitznyew4579
Жыл бұрын
A neurosurgeon doesn't rebuild automatic transmissions
@moqas186
Жыл бұрын
@@dickfitznyew4579 makes no sense what you are saying. He understands one show company but not the other? If he didn’t invest because he didn’t understood shoe business, I would agree with you. But he did pick a losing show company and not the winner.
@dickfitznyew4579
Жыл бұрын
@@moqas186 Dexter, Bates, Florsheim are in the shoe business but Nike is a lifestyle brand. Back in the 1980's Reebok was a serious Nike competitor they had the pump, the high tops etc. Nike was behind a few endorsement deals and Nike pulled ahead. This was back when $50 for a pair of shoes was good money and even then that was way behind a pair of Bally or Florsheim dress shoes. And the idea of men collecting shoes was unheard of back then.
@sh2nd
2 ай бұрын
Don’t forget Brooks which he’ve already owned
@cervelo9465
Жыл бұрын
In the last 20 years Nike has returned approximately +1,847% calculated using Yahoo charting. Warren and Charlie like to keep things simple. Which lead to them avoiding to invest in almost all technology company investments. "Don't ask your barber if you need a haircut." Is Nike really all that different an opportunity from Coke or Gilette. Nike has returned almost 20X in the last 20 years.
@AlexanderMoen
Жыл бұрын
they don't try to move on every good opportunity out there. They just try to make sure that all of their moves are good.
@DidierPeroni
Жыл бұрын
They seriously didn’t see Nike for what it was. They aren’t wrong when they said that Nike isn’t easy to understand. Nike have been very prudent in running their business- that they’ve become a cultural phenomenon was a little bit of luck and a lot of fortune. I don’t know how they do it- but god is it interesting
@kirilmihaylov1934
Жыл бұрын
@@DidierPeroni true but people say he did buy Nike . So ....
@kirilmihaylov1934
Жыл бұрын
@@DidierPeroni Nike is a great company
@mikeanderson4795
Жыл бұрын
They did say “ theyre not putting Nike
@cactusjack2264
Жыл бұрын
Crazy considering that both Nike and Reebok would’ve easily been better deals than some unknown cheap brand like Dexter.
@Racoon_UK
2 ай бұрын
That stock is just stock vehicle to put the money in ,speculate and sell high , zero significant value behind, cost of production that shoe is below 5$.. like many similar organisations.just speculative assets .
@tenderk6151
Жыл бұрын
Buffet only invests in companies that have moat - in other words - monopolies or oligopolies. He doesnt believe in competition
@mr.shenanigans7737
Жыл бұрын
Evern notice how many people have $250 Nikees but don't have a emergency fund or a car?
@edwardseymour1096
Жыл бұрын
There’s a reason why they are one of the wealthiest people on earth since they don’t invest in things that they don’t understand or fully understand. If you can’t teach about the company then don’t invest
@JenPurple2022
Жыл бұрын
Nike vs Coke - Coke’s key competitive advantage is its distribution system, you can get your news/info/entertainment from online, but you cannot be satisfied with virtual drinks. Coke built out strong distribution system early on, retails, convenience stores, restaurants, domestic and international markets. - Nike established the brand early on through strong marketing techs, like events, sports, celebrities endorsement, but there are many great shoe brands out there doesn’t cost 2x of its price or cater different needs. Normal folks only have 2 feet average 4-7 pair of shoes, the average lifetime spending per person should be less than the lifetime spending on drinks, plus many strong competitors, it has to constantly promote to get its advantages.
@raindogs451
Жыл бұрын
I couldn't disagree more. Nike has a wide range of products, including Converse. Nike has a cult like following, not unlike Sanders, Trump, Ben & Jerry's, Ray Ban, Rolex and Apple and many others. They are like those other brands, the relative "Iams" or "Haagen Dazs"s of their industry. Comparing beverages to shoes is irrelevant. Whether you're buying a Rolex or pair of Nikes, its a longer term commitment; that's the nature of the purchase. Lexus never expects to sell as many cars as Toyota; it's the nature of the purchase. Nike has an enviable decades long investment into their brand, and their revenue and profit. I'll pay $2.29 for a Coke Zero, in spite of the fact there's a Generic 6' away in the case. That's Coke's mote. Apple has built an impressive mote. And there are multitudes of people more than willing to pay a premium because it says Nike/ Marlboro/ Milwaukee/ Benjamin Moore,/ or thousands of other brands. If you think that Nike buyers are reticent because the retailer also sells Sketchers, I think you're assigning the power of a competitive advantage to Coke, and not to Nike, for a reason that I can't understand. Teenagers are literally killing people for those shoes. Their revenue and profit over decades doesn't support your claim.
@khmer31
Жыл бұрын
You practically have no understanding of what he was conveying.
@raindogs451
Жыл бұрын
@@khmer31 Sure, let's go with that.
@Racoon_UK
2 ай бұрын
Coke vs Speed.
@thecompanydna2022
Жыл бұрын
"Don't ask the barber wheter you need a Haircut", brilliant.
@jonathanbsherman
Жыл бұрын
Does this mean Warren doesn’t have any retro Js
@PeterSedesse
Жыл бұрын
Nike is built on overcharging for a cheap product based on hype created by an insane marketing budget. Buffet didnt say it was a bad stock, just one that he doesnt understand.
@WorldinRooView
Жыл бұрын
Investors quoting Mark Twain again... I have to start selling Paige Typeset machines to these people.
@jensbronton
Жыл бұрын
you have to relate to a product to have a feel to where it has potential. Maybe warren prefers flip flops when casual.
@biajidejajchowdhury1058
Жыл бұрын
How do you differentiate between Nike/adidas/ reabok?
@Elaba_
Жыл бұрын
As long as you have got a couple of hundred baggers in your portfolio life is good.
@nathanwycoff4627
Жыл бұрын
What is the third thing Charlie says at 2:25? "An architect, a contractor and [what?]".
@tarnnichollsofficial
Жыл бұрын
A hill
@dekkard
3 ай бұрын
Nike is not cool anymore. In fact, it never was.
@Racoon_UK
2 ай бұрын
True wasp point of view 😂 - don't like them but love their bold statements.
@Longtack55
Жыл бұрын
This is old but it endures. Warren has many uses of the word "utility."
@davecheng9403
Жыл бұрын
Can you add when these talks were given to future clips on this channel? Thanks in advance.
@declanmcardle
Жыл бұрын
We almost have to use carbon dating on Charlie to see what decade the clips are from...
@shankarbalakrishnan2360
Ай бұрын
How rude warren u have started messing with me .thats cool haha l❤❤🎉🎉
@raindogs451
Жыл бұрын
I have a longtime man crush on Buffett, but if the soda business is dominated by Coke/Pepsi, the running business is dominated by Nike/Reebok/Adidas. Nike is the dominant player and has the same moats/ competitive advantages in the marketplace as Coke. Same as Google.
@Racoon_UK
2 ай бұрын
Not true, You have Fila , under armour ,Asics.
@bluegtturbo
Жыл бұрын
Turns out Dexter wasn't so good...
@RedGoobler
Жыл бұрын
Weird thing to say considering how he bought Dexter
@kirilmihaylov1934
Жыл бұрын
He is lying
@cervelo9465
Жыл бұрын
I love to follow the two wise fellows, you can learn so much.
@tenderk6151
Жыл бұрын
there is nothing to follow actually they only invest in monopolies or oligopolies
@maalikserebryakov
6 ай бұрын
@@tenderk6151sees candy is a monopoly? lol
@veritasimmigration
Жыл бұрын
Thanks!
@stephenpalfy8226
Жыл бұрын
Coke leaves a bad taste in my mouth. Nike helps me stay in shape. I can’t look past the fact that Coke is a major contributor to health issues in the - well, anywhere.
@coolinspirefunnybook1289
Жыл бұрын
guess wb dont think of invest on nike bcause his experience investing at dexter shoe.and other than nike old fashion thiking he think alll shoe are commodity which earning are unsustainable.
@unaldurmaz250
Жыл бұрын
They would both regret not owning some brands, Berkshire has been a failure in 2022 ..ongoing
@MrDuds1984
Жыл бұрын
“You don’t have to hire out your thinking if you keep it simple”…….consultants
@musashi-san____1409
Жыл бұрын
Nike was one of their blunders. It happens.
@NexaTrade
Жыл бұрын
It's Nike's Tax Avoidance Tactics. They don't like that.
@MrAngelIsland
10 ай бұрын
In other words: it's a tough call.
@minageminage2383
Жыл бұрын
Thank you for sharing
@bluedot6933
Жыл бұрын
brown and dexter? who the hell likes dexter?
@dmonleon24
Жыл бұрын
rare L
@MagnusAnand
Жыл бұрын
Well, Nike did incredibly well 🤘
@kirilmihaylov1934
Жыл бұрын
Absolutely. I sense he is lying
@corley-ai
Жыл бұрын
where is full?
@malkov0001
Жыл бұрын
Nike is a bit like Apple. It has a great brand, high-quality products, and a loyal customer base. Free cash flow and sales revenue consistently rise. Buffett was wrong on this.
@kirilmihaylov1934
Жыл бұрын
Absolutely
@tomblaise
Жыл бұрын
I don’t think Buffet ever said that Nike would fail, or that it would be a bad investment. He simply didn’t understand it, and there wasn’t enough justification at the time for the investment. He could say the same thing against playing roulette and still be right even if you go play and multiple your money by 36x. Judging someone’s past judgements with the benefit of hindsight isn’t helpful for determining if they are right or wrong with the information they had at the time.
@saifalam2030
Жыл бұрын
Apple has definitely fall from grace after the death of jobs
@Nn-3
Жыл бұрын
Nike succeeded, Reebok failed. Ultimately I think he made the right decision based on the knowledge available to him.
@kirilmihaylov1934
Жыл бұрын
@@Nn-3 how ??? He didn't invest in Nike
@wahyuramadhan195
Жыл бұрын
Thanks
@jasonabc
Жыл бұрын
His loss I guess but who cares when you have billions.
@Racoon_UK
2 ай бұрын
I Throw Herr Wintzer safety jacket i know in crazy world we livin even I screw with thinking that alternative company will make good quality product..that business have big greedy sharks there ...
@noelbrian55
Жыл бұрын
They missed the boat on Nike. Permanence is exactly what Nike had.
@kirilmihaylov1934
Жыл бұрын
They are lying . Buffet does own Nike
@phrime5627
8 ай бұрын
@@kirilmihaylov1934 proof?
@Racoon_UK
2 ай бұрын
I missed that boat certainly and fall in tho the sea 😂 but managed to not sink.
@rocotron6454
28 күн бұрын
I think he's completely right. Nike is experiencing everytime more competition and doesn't have the prominent position that used to have.
@mrretired2715
Жыл бұрын
Same reason why he hasnt purchased tesla yet- he doesnt understand EV business
@Deepzombie
Жыл бұрын
No he made a lot of money on BYD so he understands EV business but he might not understand the valuation of Tesla. Most people don’t.
@sid35gb
Жыл бұрын
He hasn’t brought Tesla not because he doesn’t understand the business he does. He has seen a lot of automakers go bust in his lifetime it’s a very competitive market. But his strength is being able to value business and returns on shares vs share prices. So why hasn’t he brought Tesla? Share price is too high which means the returns will not be very good. The company is overvalued and doesn’t sell enough cars to justify the valuation. Which at its peak would mean Tesla being the only car brand being brought and Tesla selling more car then are being sold globally today then the current combined market sales it’s not going to happen. The correct valuation if say Tesla matched Toyota in car sales which would be impressive but would be a 90% reduction of its peak price and it’s got a long way to drop to be correctly valued. Then there’s the whole problem of poor charging infrastructure globally and lack of standardisation at charging points to overcome, availability of raw materials in quantity to make the numbers of batteries required which will have serious issues down the road for Tesla, because Tesla can expand giga factories rapidly over a couple of years but ramping up copper mining and production takes decades which would very likely be the tipping point for Tesla.
@Longtack55
Жыл бұрын
@@sid35gb A fair analysis David. China can produce enough up-market EVs for much less than Tesla and sell them locally.
@fabiobonetta5454
Жыл бұрын
And you do of course... thats why investors all over the World call you: the Oracle of Palookaville
@Longtack55
Жыл бұрын
@@fabiobonetta5454 My investment record is creditable, and I was repeating other credible commentary. If Buffett had said the same, would you mock him? How much AMD stock did you buy last week before the Q4 report? Goodbye.
@fabiolatgg
Жыл бұрын
2:18: Charlie: “the other day I was dealing with a problem”. Warren looks at him and Charlie IMMEDIATELY: “New building”. Omg! These 2 work together like a well oiled machine!!!
@remiboxiplenti5788
Жыл бұрын
Yea the mind of these two meld together in harmony. Warren and Charlie said they never had an argument and these dudes are 90+
@jackw2894
Жыл бұрын
However, in fact, Buffett does own nike
@kirilmihaylov1934
Жыл бұрын
You sure
@backspace4353
Жыл бұрын
@@kirilmihaylov1934 I think Jack means Buffett owns a bike. 10 speed I think.
@kirilmihaylov1934
Жыл бұрын
@@backspace4353 OK mister Police
@backspace4353
Жыл бұрын
@@kirilmihaylov1934 An officer stops a man for speeding and notices he’s not wearing his required prescription glasses. Officer: “I have to give you a ticket for not wearing your glasses.” Driver: “Officer, I have contacts.” Officer: “I don’t care who you know, you’re still getting a ticket.”
@kirilmihaylov1934
Жыл бұрын
@@backspace4353 i said ok chief
@tongobong1
Жыл бұрын
Beware!!! Buffett is full of BS. Few year after this video Buffett bought Nike and since then till 2010 he was buying and selling it.
@AlexanderMoen
Жыл бұрын
...saying you don't understand something and haven't looked into it doesn't mean you never will...
@kirilmihaylov1934
Жыл бұрын
@@AlexanderMoen he is lying
@TalkingMoneyWithNozi
Жыл бұрын
@@kirilmihaylov1934 not lying. He changed his mind. Is he not allowed to do so?
@kirilmihaylov1934
Жыл бұрын
@@TalkingMoneyWithNozi Nike is great company with very good products .so it would be stupid not invest in this
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