STREET DOGS
A Q&A with Warren Buffet
The Sage of Omaha's guidance to students from eight American universities, writes Michel Pireu
Warren Buffett met MBA, MSc and undergraduate students from eight American universities and colleges earlier in November. Among the questions to, and answers by him, were: • What is the most important skill in finance? The most important skill is salesmanship. That is how you convince someone to marry you and how you get a job. The most important quality to do well is temperament, which would permit the control of fear and greed that have ruined many. Anyone who has become rich twice is dumb. If you are already rich, there is no upside to taking on a lot more risk, but there is disgrace on the downside.• What is your opinion of active vs passive management? Nine years ago I made a $1m bet (for charity) on the Vanguard S&P 500 (low fees) against a fund of funds (hedge funds). The S&P 500 has substantially outperformed the hedge funds. One half of the gross returns of the hedge funds has gone to the managers. "They have underperformed by 40% … getting rich while failing their investor...
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