Passing the Torch: The Most Important Video for Incoming MBAs (and Everyone Else, too)
When I began my MBA, I watched this 1998 talk given by Warren Buffett to the students of the University of Florida. It was a guiding light. Now, I'm passing the video onto my wife Hannah, who begins her MBA career the week after next at MIT Sloan.
The speech touches on a number of points, and I've done my best to annotate, but the highlights for an incoming MBA student are:
PART 1 - Intro and the MBA Game
2:20 - The MBA Game - Which classmate will you invest in?
7:12 - Investing in Japan
8:25 - Cigar butt approach to investing, i.e. buying stocks valued below working capital
PART 2 - Wealth, leverage, and taking a job you love
0:10 - Long-Term Capital Management - Berkshire's bid for the imploding hedge fund
4:30 - On the founder's of LTM: "To make the money they did not have and did not need, they risked what they did have and did need. That is foolish."
4:44 - "If you risk something that is important to you for something that is unimportant to you, it just does not make any sense."
5:37 - On leverage - small upside, big downside
6:55 - "Betas don't tell you a damn thing about the risk of stock"
9:18 - "Work in jobs you love. You're out of you mind if you keep taking jobs you don't like because you think they look good on your resume."
9:50 - "Taking a job you don't like is like saving sex for old age."
I'm the Founder and CEO of Peak Support. This blog is my take on early-stage companies and innovation. Every so often, there may be a post about culture, networking, family -- you name it. After all, what is a blog if it isn't a tad bit unstructured.