Warren Buffett’s announcement that he was stepping down was momentous news for all those involved in business and investment. Matthias and I discuss the news and its implications at large, and then, as an homage to the greatest investor alive, we discuss some of his most famous principles/sayings and how they serve as a foundation for our own business and real estate investments. If, for some reason, Mr. Buffett doesn’t hear this episode, we’re more than happy to go visit him in Omaha during the College World Series (provided UNC or KU are participating) and tell him personally. I’m sure he’ll be stoked at the prospect.
In other news, we discuss the various merits of restaurants’ birthday celebrations, booth size, and kid distractions, and talk through a “big” adventure with a little tree. It’s an all-new Get Invested.
Get Invested is also available on Spotify, Apple, and YouTube.
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Key Takeaways
Buffett-ism 1: "Be fearful when others are greedy, and be greedy when others are fearful.“
CVI Principle: If the target property meets our criteria, other potential buyers’ nervousness about the overall climate works to our advantage.
Buffett-ism 2: "The first rule of an investment is 'don't lose money.' The second rule an of investment is 'don't forget the first rule.' And that's all the rules there are.“
CVI Principle: Minimize downside risk; we work to ensure no money will be lost, and our projected returns will most likely increase, not decrease.
Buffett-ism 3: "Only buy something that you would be perfectly happy to hold [on to] if the market shut down for ten years.“
CVI Principle: We only buy properties we’re convinced will perpetually produce cash flow, even if the investment endures challenges.
4. "It takes twenty years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.“
CVI Principle: This perspective underlines principles 2 and 3 above, driving our approach to every investment.
Topic and Time Breakdown
06:27 - Warren Buffett's Retirement and Its Implications
16:12 - Applying Buffett's Principles to Real Estate Investing
21:46 - Minimizing Downside Risk in Investments
27:53 - The Importance of Long-Term Holding
39:59 - Building and Protecting Reputation in Investing
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