Categories
Life

Let’s all try to be human

Reading Time: 3 minutes

(Update 11-14-2025) Warren Buffett Thanksgiving letter 11-10-2025 in PDF. You don’t have to be a BRK shareholder to benefit from it. He was talking about life in general, with his 95 years of life wisdom.

(Original 11-02-2025) 在美国,如果你对别人比较友好,一般来说我们的用nice 这个词 (google nice definition, note the AI overview): e.g., she has been nice to me. She is nice.

但是稍微再深入一下,其实我们真正想用的具体的词是considerate (google considerate definition). 或者说has empathy (恻隐之心)。Or try to put in other people’s shoes.

巴菲特说得更简单。他说:if you are lucky in life, try make other people’s life lucky too. 心理学里这个叫reciprocal, 你对我来说nice, 我也会对你nice。巴菲特说得更广义一些。

In my 28+ years stay in the USA, I think overall I received much more than what I gave. Simple ones such as people pushed my car during snow. Interviewer at Ingersoll in NJ saw me stuck in the conference room all day, offered to walk with me in the cafeteria so that I can stretch a bit.

Similar is applicable in China, I recall in my college days, the travel from college (Wuhan) to home (Ning’bo) then back, during the spring festival season is always rough. I wrote a Chinese blog post on it – I pasted the relevant section below.

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有一次在南昌转车,好像是南昌到北京的车(经过武汉)。不光没位置,而且连站的地方都没有。火车还在株洲还是武昌附近弄了很长时间的临时停车。记得当时一个武大还是华工科英的88级的女生给削了一个苹果,印象很深。在火车上基本上不想吃东西,也不怎么喝水。当时火车挤到什么程度?不知道80后,90后的同学有否体会?一个厕所里站了7个人,有个女孩想用洗手间,叫里面的男生出来一下,女生背对。结果没人响应,只能再挤一节车厢。

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Once on the way back to Wuhan, the train was extremely crowded: I could barely find space for standing. And I didn’t want to eat or drink for the fear of using restroom. I recall a girl went to the bathroom, there were 7 people there again because the train is so packed. She asked for guys to turn around, so that she could use the bathroom. I also vaguely recall she went through another carriage for bathroom. For me, my best memory of all this is a girl from Zhejiang province, I believe she was from Dong’yang, and she is a college student at Wuhan University, one year senior than me, and she gave me an apple with skin peeled. She doesn’t have to do this. But she has a lot empathy to say the least. Just recently I had opportunity to help a younger friend from Dong’yang, here in STL. I told the friend this apple story.

In Chinese, 中文讲解,不完全相同的内容,但是大意差不多,油管视频在这里。About 11 minutes long. 哔哩哔哩的链接在这里

How far do we go in term of help others?

Note it’s more than 举手之劳 (jv shou zhi lao). I think in that case, we should take care of yourself 1st and say NO if applicable. But a lot of times it’s really quite simple, like things I mentioned in the video above. Giving smart. I recall 20 years ago, once I was in Shanghai, a bunch of kids (panhandlers) asked for money, being away from China for a while, I was not aware of the potential downside of giving money to one kid. Because as soon as I gave a coin to one boy, probably 5 or 6 boys also asked for money 🙁

PS:

I recall an Uber driving experience I had on 01-23-2025. And let me also copy/paste it here.

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A bit unusual Uber driving experiences this morning. I picked up the ride during my 1st trip. Just as I was going to pick up the passenger for this particular ride (2nd trip), the Uber platform told me the passenger doesn’t do text, via a medical (care) coordinator. I arrived the apartment, did call, text to the number given by the platform. No response. But just as I cancelled the trip, and ready to leave, I saw the passenger – an old woman with cane. She is going to the Mercy Hospital in Creve Coeur. The parking lot for the apartment is both icy and slippery, and I slipped, and almost fell. She said she was just locking her door. I said: okay I will take you. I drove her to the Mercy Hospital which I briefly worked for 18 months between 2013 and 2015. She said she didn’t eat breakfast – somehow, she reminded me of my grandma and my parents nowadays (as they are aging).

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Categories
401k and Personal Finance Business Fun Fun Video Investing Life Life Tips Master Series

The 4 right hand men of Warren Buffett 巴菲特的四大金刚

Reading Time: 3 minutes

油管:my Youtube 2022 video for BRK HQ video below (narration mostly in Chinese)

Charlie Munger

We know Charlie Munger (Wiki) passed away recently, and he was the vice chairman of Berkshire Hathaway: he had some influence on Warren Buffet’s investments over the years, including See’s Candy, Coca Cola and so on. Here is the free online book Poor Charlie’s Almanack (you can purchase the paper versions through the links here). Also, the last interview before he passed away with CNBC’s Becky Quick (1 hour 42 mins, YouTube link here). I still think Warren makes most investments decisions independently. though.

If you like to have a quick look, I listed some shorter videos of Charlie Munger’s classical moments here.

四大金刚 (google; baidu baike, Wiki) is a common idiom in Chinese, and I think it may be suitable to describe the current top 4 men who works for Warren Buffett. And I assume they take over most of what Warren does today, should Warren decides to retire.

Top Two (Duo)

Greg Abel (Wiki): current Vice Chairman of BRK, responsible for all non-insurance operations, which also means he is in charge of the BRK Energy (formerly Mid-America Energy), BNSF Railway, many manufacturing and retail operations ranges from BH Home Service (real estate agents), Brooks Running, Clayton Home, Diary Queen, to ISCAR, Nebraska Furniture Market (NFM), Net Jets, See’s Candies, to Oriental Trading, Squish Marrow and so on. Note there are many business people may have not heard of. As of now, Greg will be the CEO of Berkshire Hathaway when Warren Buffett retires, in addition to his curent Vice Chair title.

Ajit Jain: current Vice Chairman of BRK, responsible for all insurance operations, companies such as Geico (car insurance) to reinsurance business.

Warren asked Greg and Ajit to be on the stage in last few years’ annual shareholder meeting, and they answered relevant questions in their portfolio. This is a good move. I think also, once Charlie slipped his tongue during an Q&A, and he said Greg will keep the culture (or something similar). So the world knows Greg is the CEO heir apparent.

Investment managers (also a duo)

Ted and Todd are two former hedge fund managers that Warren Buffet hired about 15 years ago (exact date please refer to their Wikipedia links below, or you can google it). Quite a few people including $BRK.A and $BRK.B shareholders would question Warren Buffett’s age and they are worried what if Warren suddenly became incapacitated or die. Who is the heir apparent. This is a tricky question or problem, because very few hedge fund managers would give up their career, at the same time would basically be prepared when this inevitable happens. It seems in Ted W. and Todd C. Warren found the perfect duo for this job. This is somewhat like the duo of Warren himself and Charlie.

Berkshire began buying Apple stock in 2016 under the influence of Buffett’s investing deputies, Todd Combs and Ted Weschler.

Ted Weschler: Ted got a bit unwanted attention from his personal IRA investment. But his performance speaks louder than his words. Quote Wikipedia: in 2012, Weschler joined Buffett at Berkshire Hathaway, a year after Todd Combs joined as Berkshire’s first investment manager. As of 2019, he managed $13 billion of the equity portfolio and $8 billion in pension funds.

Todd Combs: in addition to his investment duty (along with Ted), note Todd is also the CEO of Geico (and technically for that role he reports to Ajit). Here is a picture of Todd during “invest in yourself 5k” during the annual Berkshire Hathaway shareholder meeting. Here is a picture of Ted, Todd and Tracy Britt Cool during that run. Note Tracy used to work for Warren as well, and she started to work on her own investment partnership in recent years. Maybe someday she will come back to BRK: if the right opportunity arises.

Board

Howard Buffett, Warren’s older son, plans to take over the Chairman role when Warren retires. Susan Buffett, Warren’s daughter, and a few others will be on the board. They may need to add one or 2 board seats because Charile used to be a board member.

One thing it’s interesting is Warren likes #pairProgramming, or #pairWorking, because he has two pairs of magnificent managers for CEO and investment managers job.

Categories
Fun Video

Warren Buffett’s Secret Millionaire’s Club

Reading Time: < 1 minuteFinancial education for the kids
of course, learn from the grand master is the best way. Here it is, buffett’s secret millionaire’s club cartoon.

This is a more systematic approach, which includes a lot different concept on personal finance and investing, such as saving, rate of return/capital expenditure (modeled after See’s Candy), etc.

Categories
Master Series

Questions for Warren in this year annual shareholder meeting

Reading Time: < 1 minuteAlso collected here.

1. Why invest in Utilities? Does not Utilities need a lot of capital, what’s the difference between Utilities and the original Berkshire (BRK.A, BRK.B) textile business? You did explained in your letter that utilities can deploy capital for a decent return. And I read this old article “Why Buffett is buying utilities” from MSN money (Jim Jubak). Do you agree some of what Jim said?

2. Why keep American Express (NYSE:AXP) and Moody (NYSE:MCO)? Don’t we see the permanent demage of consumer credit, and the rating companies? How about Wells Fargo (NYSE: WFC)? Why not sell all Bank of America (NYSE: BAC) shares (noticed you did sell half last year)?

3. Derivatives. There are a lot crititics on this, and you have explain this very well in the shareholder letter. But, as I read “Poor Chariles Almanack”, Charile is much more cautious on derivatives, and its systemantic risk (chain effect of credit risk form counter parties). What’s your comments on over the counter derivatives market in general?

Will add more questions when it pops up.

Disclosure: I sold my remaining BRK.B share yesterday. No positions on the other stocks being mentioned.

Categories
Master Series

Buffett on CNBC

Reading Time: < 1 minuteThe Squawk box, here are the videos.

Part 1:

Categories
Master Series

Buffett on the market

Reading Time: < 1 minuteNew York Times Op-ed piece (10/17/08): Buy American. I Am.

Buffett article Fortune Magazine 11/10/2001: Warren Buffett on the Stock Market: What’s in the future for investors

You can read more Buffett and Munger stuff at Warren & Charlie page.

Categories
Life

Most expensive lunch?

Reading Time: < 1 minuteThis is probablly the most expensive lunch: Chinese fund manager Zhao Dan Yang won the Buffett lunch bid for $2.1 million (International Herald Tribune). The proceeds benifit Glide foundation, a San Francisco based charity formerly supported by Warren Buffett former wife Susan Buffett (Susan passed away in 2005?).

My 2 cents
I was surprised by the amount initially. This amount is almost 3 times of last year winning bid. Perhaps because Buffett is getting older? Also Mr. Zhao must have significant personal wealth to pull off that, no small change for fund managers, because fund managers make money from fees and profit sharing (2-20 rule, I will write more about fund manager fee structure later).

Categories
Shanghai Composite

Can value investing work in China market?

Reading Time: 2 minutesUSA today has an interesting article regarding Chinese investors (speculator more precise) learning a tough lesson in the domestic stock market. The article used two example to explain:

China stock exchange pic
(Picture source: USAtoday.com)

In October (2007), Wang, 45, invested $2,800 in a Beijing real estate firm, chosen, Wang explains, “because it’s called an ‘Olympic stock,’ and ought to do well.”

But now Wang’s beginner’s portfolio is down almost $1,000, over three times her previous monthly salary.

Example 2 (quote from the article) again:

Categories
Master Series

Walter Schloss also beats S&P

Reading Time: 2 minutesand he had done it for 47 years (maybe not every year, but compound annual return), that’s pretty good.

The following is quoted from Buffett 2006 shareholder letter, you can get the full letter at Berkshire web site:
……
Let me end this section by telling you about one of the good guys of Wall Street, my long-time friend Walter Schloss, who last year turned 90. From 1956 to 2002, Walter managed a remarkably successful investment partnership, from which he took not a dime unless his investors made money. My admiration for Walter, it should be noted, is not based on hindsight. A full fifty years ago, Walter was my sole recommendation to a St. Louis family who wanted an honest and able investment manager.

Categories
China Stocks

Everyone wants to be Buffett

Reading Time: < 1 minuteWarren Buffett is a popular guy in China, although he has not visited China. But his book (more accurately the books about his investing philosophy) has been translated into Chinese. Such as this one, Buffett’s letters to shareholders, which is good. But there are many other knockoffs, such as this one, Lin Yuan the Chinese Buffett, I haven’t read the whole book, but read a piece of it. I think Lin Yuan is a sharp guy, but he is not Chinese Buffett.