Three Things Bill Gates Learned From Warren Buffet
"I'm looking forward to sharing posts from time to time about things I've learned in my career at Microsoft and the Gates Foundation," says Bill Gates
Last month Bill Gates went for to Omaha for the annual Berkshire Hathaway shareholders meeting. "It's always a lot of fun, and not just because of the pink-pong matches and the newspaper-throwing contest I have with Warren Buffet. It's also fun because I get to learn from Warren and gain insight into how he thinks."
Here are three things Bill Gates learned from Warren over the years:
1. It's now just about investing.
The first thing that people learn from Warren, of course, is how to think about investing. That's natural, given his amazing track record. Unfortunately, that's where a lot of people stop, and they miss out on the fact that he has a whole framework for business thinking that is very powerful. For example, he talks about looking for a company's moat - its competitive advantage - and whether the moat is shrinking or growing. He says a shareholder has to act as if he owns the entire business, looking at the future profit stream and deciding what it's worth. And you have to be willing to ignore the market rather than follow it, because you want to take advantage of the market's mistakes - the companies that been underpriced.