If you read my blog for a while, you know I am a fan of Warren Buffett. Not just because he is the second richest man in the world; it has more to do with his investment philosophy and the way he lives his life. Last night CNBC’s had an one hour show in which the reporter spend one day with Warren and I liked it very much; and I gurantee it’s much more insightful than Jim Cramer’s Mad Money show. One of the question people usually ask is “why does not Warren live in New York, the financial center of the world; and instead live in Omaha, a small boring city in Mid-west”. I know the answer because I heard it from my friend before. But Warren’s answer still left deep impression on me. He said “if I stayed in New York, I would get 100 good ideas (and get distracted). While in Omaha I can focus on one great idea”.
I think this “focus” thing is very important, be it in stock market, business, career or personal life. While I talked a lot about the mistakes I made in stock market in my “Stock Lessons” series, I think “lose the focus” is the main reason.
By the way, Warren showed his unpretencious personality again in the one hour show. He showed up in public places without body guards, drives by himself at age of 76, lived in the house he bought 50 years ago…CNBC titled the show as “billionare next door”, which is very accurate.
OK, from now on I will do more research about the stocks I buy (instead of just speculating).