저자: 김학균 · 한국인
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워런 버핏 은퇴를 계기로 나온 '워런 버핏 바이블: 완결판'을 소개하는 영상으로, 투자 철학 설명이 중심이며 개별 자산의 가격 방향 예측 발언은 확인되지 않음. 책 소개: 940쪽 분량의 완결판으로 2025년까지의 주주서한·주주총회 발언을 포함하며, 리처드 코너스 번역·편집본을 이건 작가가 한국어로 옮김. 버핏 철학: 능력 범위(circle of competence) 안에서만 투자, 좋은 가격에 좋은 기업 매수, 안전마진 확보가 핵심. 턴어라운드 투자와 5~10년 후 예측이 어려운 고성장주(엔비디아 언급)는 피하는 경향. 애플은 '해자'가 있는 기업으로 설명. 버크셔 해서웨이: 방만한 간섭 없이 자회사 경영진에 전권을 위임하는 구조, 보험 플로트 활용, 자본 배분 역할 강조. 은퇴 및 후계: 그렉 아벨 체제 전환 후 '버핏 프리미엄' 하락 우려, 미국 증시 약 13년 상승 후 사이클 리스크 언급, 대규모 현금 보유는 기회 대기 의미로 해석. 마무리: 과도하게 자주 사고파는 것보다 적게 행동하고 많이 생각하라는 메시지, 평판 보호의 중요성 강조. 출연자는 책 해설과 철학 설명 위주로 대상 자산 가격 전망은 제시하지 않음.
다듬은 글
The Sage of Omaha, the investment genius, and once the richest man in the world—you probably all know who this person is known by many names . Even if you don't know about stock investing, this person's name is really famous. Warbuffett However. Unfortunately, War Buffett said he would only invest until 2025 .
He announced his retirement a while ago, saying he would work . It's such a shame. To commemorate Warren Buffett's retirement, a new book has been released that compiles his thoughts and investment biography. Today, let's read the definitive edition of the Wil Buffett Bible together. Joining us is Executive Director Kim Hak-kyun, who leads the Shinhyung Securities Research Center.
Hello. Hello, Mr. Jeon. This is the thickest ever. Could you please listen to this book for a moment? You might not be able to see this, but if you look to the side, we usually call a book about 500 pages a "brick book," but this book is 940 pages long. yes. It's a bit short on page 1. Only the main text is like that.
Oh, you must be having a hard time bringing this over again . Oh, no. It is a really good book, and yes, just as the representative mentioned, everyone feels a bit sad about the retirement of the Law Firm, but he was born in 1930. You did a lot at 95. yes. Charlie Munger, who could really be called Warren Buffett's soulmate, was probably born in 1923 or 1925, so he is much older.
Although he remained active in the workforce and remained vigorous as an investor until the age of 95 in 2022, there is a company called Berkshire Hathaway, which is where Wall Street Buffett invests. In a way, this company is one of the worst investments made by Buffett, despite him being a successful stock investor .
Ironically, the company that Warren Buffett gets stuck with and ends up acquiring . So, I bought this textile company in the 1960s. It was bought at a very low price, but as the textile industry fell behind, it became a declining sector. However, after acquiring an insurance company under the name Berkshire Hathaway, Berkshire Hathaway ceased to be a textile company and entered the business sector after 80 years.
It has now become a holding company. All those Will Buffetts invest through Berkshire . That is Berkshire's largest week in the month . But Berkshire's stock price is uh $ 740,000. But it's about 1 billion a week. yes. It's a very expensive stock, 1 billion won per share. Since Buffett owns about 36% of it .
Hmm, yes. hmm. Well, there are people who have more money than Buffett . Well, Bill Gates did the same, and Elon Musk is doing the same now, but the difference between Buffett and them is that Bill Gates and Elon Musk founded their own companies . I became rich because I owned a company and it succeeded, whereas Warren Buffett is a bit different from them in that he became rich through stock investment .
However, Wall and Buffett do n't just buy and sell stocks like ordinary people do; they have also made many corporate acquisitions. yes. So now, Berwe wants to acquire the entire company as a primary subsidiary and manage it as such. On the other hand, in the case of Apple, he made money by buying about 5% of the shares, and he is known to be the person who has made the most money through stock investment.
So, he is somewhat different from other businesspeople. In a way, he is someone many people want to learn from as an investor. So, first of all, how did you view Warren Buffett's retirement itself? Even the people who wrote the prefaces and recommendations at the beginning of the book all said the same thing.
It was shocking. It's a bit of a shame. yes. Actually, come to think of it, he is at an age where he doesn't really need to buy Coca-Cola or McDonald's hamburgers, considering he invests all the time. However, because he has such a huge influence on investors worldwide, I did feel a bit of regret. So, to introduce this book, if you actually type "Wall & Buffett" into a search bar, there are probably hundreds of books about this person available in Korea as well.
There are too many. There are many. However, the original author of the story of Wallen Buffett is Wallen Buffett. Buffett has the original key, yes. This person has told many stories over the decades . So, however, Buffett didn't write a book . I have n't written any books myself. I have not written any books .
Well, I have contributed articles to publications like Fortune in the past, but I have n't written any books. So, basically, for those writing books related to LawFit, it is important to effectively combine and convey the ideas of LawFit . That is why, for books on Lawfit, I consider it extremely important who translates, edits, and adapts them .
So, in the United States, there is a person named Lawrence Cunningham . Globally, there is a book about Buffett called *The Wall and Buffett Bible* . There is a book called "Shareholder Letter." This is something that is viewed by a large number of global readers . Cunningham is the person who translated this shareholder letter .
And this Warren Buffett Bible was translated and edited by a person named Richard Connors . In a way, they are all people recognized by Warfit. People who acknowledged. Both times, I am a university professor. But this book is also a translation of the original text written by a man named Richard Connors .
However, Richard Connors passed away in 2010. But this book goes up to 2025 . So, it additionally includes the most recent shareholder letter and remarks from the general shareholders' meeting . yes . I added it in addition. That is why, although Richard Connors established the framework known as the War and Prof.
Bible, I think the Korean translator who edited this book, writer Lee Geon, played a very significant role . So, I think the characteristic of this book is that in America, there are authors associated with great lawyers like Cunningham and Connors . Then, regarding Korea, there is this person named Lee Geon, whom I consider to have raised the level of the Korean capital market to the next level .
This person has skillfully edited it. And since it says it's the final edition, well, it really is the final edition. Since we can no longer hear the truly gem-like proverbs that Mr. Buffett spoke through his long retirement from investing and his shareholder meetings at Berkshire, this is now the final showdown.
And since it also covers up to 2025, I think it is truly a fitting book that lives up to the name "The King's Decisive Battle ." It reaches 940 pages, but actually, it is the final one that can't be released anymore, which is a bit unfortunate, isn't it? In fact, if the original is good, writers can create based on that text .
There are many books that apply that. But since Buffett sounds like a philosopher just by the way he speaks, and he is also a great investor and a great executive, he is pleasant, and yes, he has a sense of humor. From that perspective, since it is very difficult for others to raise the levy, I think it is very important to organize my thoughts on Lawfit well .
In particular, two other advantages of this book that I felt while reading it are that Buffett has engaged in direct Q&A through shareholder meetings and general shareholders' meetings for decades . The content is very extensive. But since it's classified into 13 categories, it's a good book to read separately, and also, for me, one page...
uh, what should I call it? I entered as a commentator and simply did my best, but since the other nine are truly renowned figures in the Korean capital market and people I respect who even added commentary to each chapter, I believe this is a somewhat differentiated story in that respect. That's right .
In fact, being able to interpret Wallon Buffett's words and writings is actually a tremendous honor. In our country. Also, Mr. Lee Geon, who organized this book—that is, not just a simple translation but also reorganized it to make it easier to read—has appeared on our Y-Street. Ah, I see. We at Byeolcheok co-produce with KBS 1 Radio and Y-Street.
Ah, but the only YouTube channel the translator has appeared on is Y-Street . Ah, so that 's an asset in that sense, too. Jaye. Back when I was in college, there were many things in Korea that couldn't be translated. There were also many banned books. So, a significant number of the books I read when I was young are books that were adapted from the Japanese edition.
It was a book that people who didn't know the content well read because they only knew Japanese, but after a high-quality translation came out later, I realized, "Wow, that book was actually this book." To be honest, for people like me who aren't good at English, appearing in a good translation is really important.
However, it’s not just about being good at the language; the person doing the translation needs to be someone who understands the mechanism well. So, just a side note, but lately, the reading I enjoy the most is reading complete collections of world literature. Recently, several major Korean publishing houses have properly published and released it.
I translated it better. yes . So, I watched Gun River's performance a while ago, and ah, it's quite different from what I saw when I was young . That is why I believe that good translation contributes to raising the intellectual level of our country . That's right . This is already a somewhat difficult book, so we need to make it more interesting and memorable for a long time, rather than having people just read a few pages and drop it .
I am talking about the complete edition of the Warren Buffett Bible . In fact, when talking about Buffett, we cannot help but talk about stock investing . Of course, he once rose to become the richest person in the world and possesses enormous assets. However, aside from the fact that he made a lot of money, when we look at his investments—which make us inevitably acknowledge him for various reasons—people who make a lot of money or succeed tend to be quite arrogant.
hmm. However, value investing, the philosophy created by LawFit and its mentor Benjamin Graham, fundamentally embodies a philosophy of humility . So, it means there are many things in the world that I don't know . The absolute principle that value investors strive for is to only do what you know. But as I go about my life, I also get asked to make all sorts of comments.
So, I’m saying this because I’m not sure if I’m really doing it with knowledge or not. Of course, I do my best, but actually, it’s a very difficult thing to distinguish whether I’m doing it with knowledge or not . People who know well are actually good at distinguishing what they know and what they don't know.
Appit emphasizes that he is a capable criminal . That means there are areas I don't know, and the very important philosophy of LawFit is that not doing what you don't know is also an investment. I have to do only what I know . So, I have spoken critically several times about Lawpit's behavior of buying and selling stocks too frequently .
I should only do what I know. I'm not even sure about what I know. hmm. And investment is about forecasting the future, you know. So even if I think it's the best, when buying stocks, you have to buy them at a good price. So, what Wallace Buffett emphasizes is the margin of safety—actually what his mentor Manmin Graham talks about—that even if I know the answer well, I can still be wrong, so I must buy at a good price .
But how do you buy and sell so many stocks? hmm. However, at its core lies the perspective that regarding knowledge, the scope of ability, and safety, there may be a world I do not know, and that I must play only within what I know . Secondly, Berkshire Healthway, in which Wall and Buffett invest, is a holding company.
It grants full autonomy to the people managing the company. That is what Buffett-ish is all about now. Buying good companies is what Buffett does . And the rest is a complete delegation of authority . Because he bought them at a reasonable price based on what he knew, the companies Buffett invests in were highly likely to succeed, and those companies are making money.
What Buffett does is use that money to acquire another company, e.g. Investing is their role—it was Buffett’s role, but giving extreme autonomy to a partner you work with—things like this are actually difficult for a smart person to do. yes. I'm trying to do everything myself. In that respect, Buffett seems to be someone with a philosophy worth learning from as a manager.
I will ask you again later about your management style, not only as an investor but also as a manager . However, there is also an aspect that many people misunderstand. War Buffett really does invest for the long term. I only stick to long-term investments . But that isn't necessarily the case either .
hmm. Well, Wallen Buffett actually invests in a diverse range of fields, but fundamentally, he is a long-term investor . yes. Companies like Coca-Cola, American Express, and Bank of America have been around for a long time. So, basically, I think that if you buy a good company, you do n't need to sell it.
Ah yes. Buy companies that don't need to be sold. yes . For example, in the case of American Express, it seems like that company has been around for about 30 years . But the dividends from that company come out every year, so if you collect them for almost two or three years, you can recover your entire initial investment principal.
It goes without saying that the stock price has risen, and while I am now aiming for long-term investment, if I make a wrong decision, I have to cut my losses and sell . Well, regarding things like airline stocks, there are some instances of investment failure, but basically, you have to view the investment horizon as very long .
So, in the case of the four major sectors, holding them for over 30 years accounts for a significant portion. Let me also talk a little about Warren Buffett's style . What would the framework be like for Warren Buffett’s unique principles and rules when selecting companies to invest in ? Hmm. I basically need to understand this well.
It is something that needs to be understood well within the scope of competence, and the individual needs to understand it well themselves, but Wallen Lawpit says this . If they acquire the right to invest in a company, Law Pitt and Charlie Munger say they can tell whether or not to invest in about 20 minutes.
So, as I mentioned, for LawFit, you basically need to buy companies you know well . So, even from a perspective that is somewhat critical of Lawfit's value investing, you never know what the future holds. Since the future is uncertain, there is a tendency to try to buy companies that have been proven in the past .
So, Buffett does n't believe in things like turnarounds when it comes to investing. aha. Generally, when we invest, we make a lot of money if a bad company improves . This is actually a philosophy worth respecting, and there are people who have made money that way, but what they couldn't do in the past is highly likely to remain impossible in the future.
Also, in the case of Nvidia, I think it would be difficult for War and Buffett to invest in it . I also tend not to buy companies that are doing very well but are difficult to calculate for in 5 or 10 years . Also, the most important thing in Buffett's investing is price. Uh, they say we need to buy a good company at a good price.
But as for the slight changes to the LawFit investment... ah, shall I tell you about that later? Now, in the case of his original mentor, Manjamin Graham, he buys good companies—that is, companies that are undervalued relative to their worth. So, in a way, the evaluation of this company's quality was actually quite lacking.
Even if it's a trashy company, you can buy it cheaply. If you buy it cheaply, they called it a protein-rich chocolate company . You just need to do the protein, suck it all up, and throw it away for free. I did something like this . However, we need to account for the historical background that the Great Depression occurred during the period when Benjamin Graham invested .
They argued that since stock prices have dropped significantly, and those companies were in a historically undervalued state with their stocks temporarily suppressed, one could make money through that as well . But then, after meeting Charlie Monger, Lawpit's investment style changed. Benjamin's philosophy is that buying a company cheaply—even a bad one— by securing a margin of safety is actually a good investment, and he invested that way.
However, Berkshire, which we mentioned earlier, failed by investing in that manner. I thought it was cheap, but the company keeps getting worse, so it's not actually cheap. So, what Charlie Munger argued was to just buy good companies at a reasonable price. hmm. So, because it is said that as a company is well-managed and its value increases, one ultimately wins in the long run even if bought at a reasonable price, Buffett's investment has gone through two stages.
But the key point is that whether it is a good company or a protein stock, you should buy what they do well and buy what has a predictable future. So basically, Buffett does n't really buy expensive growth stocks or things like that . Right? But I bought an Apple. Apple probably has the most right now.
Apple has the largest share. It has the most among listed companies . But then, is the company called Apple similar to Ambiria ? No. I think it's completely different. Was it around 2016 when you bought that Warber? I bought that iPhone a long time after it came out. yes . So, in a way, rather than viewing this as a growth stock, the mobile phone business is practically moving into a mature stage just by being at that point .
Buffett calls these things that possess overwhelming competitiveness a "moat ." A moat is that space in front of a castle, like a moat, that blocks off the enemy from encroaching . Buffett buys companies with moats, so I think a company like Apple has a slightly different character in that regard. However, while saying this, Buffett said very humorously, "I've made a lot of money by investing well, and that's how I became rich." Oh, and I also made a few bad investments .
Well, basically, I think I can speak proudly about it because I earned money . Regarding examples of investment failures—such as buying Berkshire Hathaway, which was a failure, and failing multiple times in airline stock investments— Buffett says this: People say that there are so many things we missed out on because we didn't invest in them even though we knew they were good, so let's talk about Google.
In a way, Google Yefit's business model is an insurance company-centric model. Insurance companies receive premiums, you know. yes . However, since it takes a long time to receive premiums and pay out claims, Buffett can use that money for investment . This is called a float . Well, insurance companies like Geico or famous brands like Boeing Generali advertised on Google in the early 2000s .
yes. I did Google Bo, and it was very effective. So, from Monroe's or Buffett's perspective, it is a company that falls very reasonably within the scope of their capabilities, yet there are repeated stories of regret and disappointment regarding the loss of Google . Google, Amazon, and even Bill Gates are close, yet they didn't buy Microsoft, and the same goes for Walmart.
However, I understand that the purchase of Apple was not an investment in an IT company, but rather an investment in a consumer goods sector that can sustain itself in the US and globally . So, regarding real estate, you mentioned the castle with the moat earlier; if we compare that to real estate, one only buys an impregnable castle.
sure. But the thing is, a building appeared in front of NYU in the early 90s. But if Buffett were to move just one of them, New York University wouldn't have moved, and apparently, a huge shopping center was located there at the time . But this shopping center paid a very low rent, and they did it for a long term, about 4 or 5 years.
So, when we usually think about it, if a tenant occupying a significant amount of space pays a low rent, we would consider it a burden in the long run. However, from Lawfit's perspective, the building price was likely low . Also, the early 1990s was a time when the real estate market as a whole was bad due to the U.S.
housing loan crisis and bankruptcies. All of this has been reflected, and New York University will not disappear. This is a kind of moat. Because I'll keep being there in front of it . And the tenant paying our low rent argues that since they will be moving out after about five years, they can live there in the long run .
So, Wallen Buffett didn't necessarily only buy stocks . He bought farmland, and he and his son cultivate it. Well, it’s about buying farmland and Buyongsa Temple, but the point is that you buy something you know well at a reasonable price . Whether it is stocks, trading targets for individual stocks, real estate, or corporate acquisitions, being able to evaluate them together and buying them at a fair price is, in a way, Warren Buffett's most important investment style.
So I don't get to decide the price. yes. The standard is my ability to determine the appropriate value, isn't it? I don't know if that's right or wrong, but at least it means I should buy a stock that I know well . So, I think there is surprisingly a lot of beginner's luck when we invest . This is because I end up investing when virtual assets go up, whether it be stock prices or anything else .
It seems like it will go up further, and due to the relative deprivation of others making money, more money flows in as the stock price rises. So, the reason beginner's luck occurs is that you usually invest when the price is going up. Unless you are really unlucky and buy at the peak, the price will go up by accident.
hmm. If that happens, people will think, " Wow, I have this kind of talent," even regarding the profits I initially created in the market through unwitting investment . Right after COVID-19, many people I didn't even know well sent me emails asking, "Uh, how about becoming a full-time investor ?" He said things like this a lot.
So, the distinction between what I know and what I don't know is really important. Someone like Beoppit is quite... how should I put it... in that regard ? That distinction is clear, and I don't get anxious about what others earn . yes. A lot of strikes are coming in, but even if I don't swing, I'm just waiting for my own pitch.
hmm. I said that investing is much more advantageous than baseball. They said that if we don't hit the global market, we're out, but we can keep waiting for investment. Right ? Actually, I read a book by Kim Tae-kyun, a truly great batter who retired from Hanwha, and he said something similar to Beoppit, but in some ways, he said something even greater than Beoppit .
Even if you strike out, you must not hit a bad pitch. You know how we think we need to swing at a mediocre pitch when we have two strikes . However, Kim Tae-kyun said that if you hit ambiguous pitches, the probability of getting a hit is low, and since our bodies remember the last action taken, it is better in the long run to strike out once than to keep swinging at this and that, which ultimately leads to bad actions.
That is a truly excellent insight. I got the feeling that people who have made a name for themselves, whether they are investment masters, baseball masters, or anyone else, are similar . Finding and following a path that allows me to do things steadily over the long term this year without getting impatient is actually quite difficult.
He is now facing criticism for not investing heavily in tech stocks, but in fact, he was able to survive for a long time precisely because he did not invest in things he did not understand. sure. yes. So, survival comes first, and not losing is also the priority. Warren Buffett's investment philosophy is the same— not losing.
Also, one of the great things Charlie Munger said is that when we earn money and keep increasing it through multiplication, if there is even one instance of multiplication by zero, our wealth turns to bread. That is why it is extremely important to diversify your investments in what you absolutely know, and I want to emphasize this once again.
Within that philosophy that I should only do what I know, there is a humility that acknowledges there are areas I do not know . We might think that knowing just a little bit makes us feel like we know everything about the world, but even as I go through life, I often find that I know nothing at all.
In a way, I believe that value investing embodies a very profound mindset, much like the "Humility Society," which dictates that one must only do what one truly knows . So, when you look at the people around you who have been investing successfully for a long time, they all exude humility and seem quite peaceful, don't they?
I think I have a bit of that kind of temperament. Rather than those who are active, people with a truly peaceful mind tend to look at the long term, so they can sleep comfortably at night and even sleep naked. That is what Lawfit often talks about. Of course, since this is also similar to their temperament and tendencies, there is one more thing I would like to mention when investing together: there is n't just one way to invest.
It’s not just value investing; I believe there are points we can consider as a philosophy worthy of respect . That's right . Actually, investing isn't the goal anymore; if I make money, it can just be a means to an end . But I don't know how to understand this. Didn't Lawpit also invest boldly in foreign exchange, derivatives, silver, or oil-related companies ?
sure. Especially now, even derivatives. How am I supposed to understand this? Uh, in the early 2000s, Buffett said it was a mass-killing tree, whether it was in this shareholder letter or in the direct response to the Q&A at the general shareholders' meeting. The product. hmm. So, essentially, I do n't like it.
It doesn't even match the value. However, as I always say, when something is significantly undervalued, there are various derivative products and models that we can use to evaluate it. I think I took a derivatives position on the stock when it was extremely undervalued. So, basically, with a philosophy like Buffett's, derivatives actually have maturities.
yes . We can't keep taking it. That is why, and since it is essentially a game of matching prices, it does not align with the philosophy of value investing, but it is something that can be done when it is extremely undervalued. Also, I recently bought shares of a Japanese trading company . I bought shares of the top 5 trading companies in Burke.
So, those stories have been widely reported in the media, but if you look at this book, you will find very detailed accounts. Even when buying that, from Buffett's perspective, he is an American. You have to exchange dollars for yen to buy it, you know . If that happens, you will essentially be exposed to phantom disease .
But this year, when buying a general trading company, a Japanese general trading company, they issued yen-denominated bonds . Then, essentially, there is no phantom. Because I live in Japan. So, but now, Japan's interest rates are much better than those in the U.S. sphere, aren't they? So, regarding Lawfit, I actually have this thought: This is essentially a matter of knowing.
I should n't do anything, and aside from LawFit, I know an investment style that I respect these days. There is a historic investment institution in Scotland called the Baillie Board, which is an investor I admire. yes . But in my opinion, Valley Gifford invests together. It is a very long-term investment, and Valley Gifford has held Amazon stock for over 10 years, which Buffett could not buy .
He was even Tesla's second abbot. A very long-term investment. So, Amazon bought the Tesla organization, so isn't Valleyford a value investor? I don't think that's the case. It is the depth of the egg. However, it is difficult for ordinary people to know such things. While Warren Buffett adopts a methodology that is somewhat more established and verifiable in the past—or in a way— I believe that, essentially, value investing is a matter of knowledge.
I don't think that just because my scope of ability expands, I should buy Nvidia and invest together . yes . Having walked alongside that company for a long time with such deep knowledge, but buying things thinking, "I'll buy it just because others are," or " There must be some fool who would pay a higher price for it," is that really the case— regardless of whether you make money or the outcome?
Is that why? I really hated virtual assets . Warren Buffett and Charlie Munger criticized it in unison. I'm confused whether this is Buffett's words or someone else's, but even if they gave me Bitcoin for 1 cent right now, I wouldn't buy it . You know, I've talked about things like this before . Why did they hate it that much?
I hate money, too. hmm. Because when you say "value investor," the word " value" comes before it. Value. This value is the present value of the cash flows that an investment target will generate in the future . So, to put it simply, it means that if I buy something, it needs to multiply here . It increases farmland.
Agricultural products are available, you know. You know, the building rent comes out. But actually, gold or virtual assets do n't pay dividends or reflect growth. That is why, from a value investor's perspective, this doesn't seem very satisfactory . If we look at the fact that they cannot generate cash flow, and also consider their very long timeframe .
Actually, virtual assets are becoming quite institutionalized now. It is becoming institutionalized and establishing itself, but if you look at it from a long-term perspective, it could also be seen as a temporary trend . So, in my opinion, while it is true that he expressed quite raw hostility toward virtual assets or gold, Charlie Munger said this.
Even if it is not virtual assets or gold, I am 98% agnostic about stocks as well. It's not that it's wrong. It means I won't do things I don't know how to do . yes. So, in fact, when making decisions about gold or virtual assets, there needs to be a framework of perception regarding whether they are overvalued or undervalued relative to their value.
However, since it is difficult to gauge the value of these assets, I don't think they will buy them. Therefore, I think there is also an underlying philosophy that, from their deeply rooted perspective, the price of an asset that fails to create value is unsustainable . Also, essentially, it is something I do not know.
I think the mindset of not doing what you don't know is also ingrained. So, even when Warbuffett first bought farmland, he did n't just think, "Oh, the land is cheap." He calculated how much he would pay for the land, how much income would come from it, how much he could earn annually, and how many years it would take to recoup the cost of the land before investing.
Oh, absolutely. That son. Also, although it doesn't appear in this book, if you look at the Orange Law-colored Electric Snowball, he makes a cold deal even with his son. Since they are there, they also receive rent. yes. He is a very cold-hearted person. Another thing that comes to mind when thinking of Buffett is that you should sell out of greed and buy out of fear.
The idea is that you should feel greed when others are gripped by fear; honestly, that's easy to think about, but when that situation actually arises... That's right . yes. It's difficult. Of course, Warren Buffett seems to have been born with a temperament that was somewhat different from mine. As I mentioned, how would it be good for the general public to learn this?
hmm. hmm. But now, Benjamin Graham, Buffett's mentor, introduced the concept of "Mr. Market" in *The Intelligent Investor* . Actually, when we invest, we try really hard to match the stock price, don't we? However, Buffett and Graham argue that predicting stock prices is a futile endeavor, and while stock prices may converge to their value in the long run, they are not a standard that can guarantee rationality on a case-by-case basis.
Therefore, to explain a little further, the main trend in investment theory since the 1980s has been the rational market hypothesis or the focus on market efficiency, which posits that markets are relatively efficient. There was a philosophy embedded in the idea that no matter what you try to do, market-determined prices reflect all information, and that politically led to neoliberalism .
A version of investment theory that suggests cutting taxes, reducing the government's role, and leaving it to the market is something like " Rational Human ." Actually, value investors do n't see it that way. It is based on the philosophical premise that the market is essentially a "miston market" that fluctuates between mania and depression, so we should utilize that rather than become its slaves .
The reason we sell stocks when they drop is essentially just that, isn't it? I do n't know why I'm falling, but there must be a reason. Investors view it as if it will fall further, based on the premise of the market's irrationality . Also, that implies a sense of humility, implying that I cannot know the market price.
That is the foundation, and the second is long-term optimism. You should n't bet on failure in this world. In particular, Warren Buffett keeps appearing in this book, but even if I am unlucky, I was born in a country called the United States, and in the long term, the United States will prosper. They make claims like this.
That is why it is said that if it fundamentally drops, there is health power . Even if it’s not the puppet case . Right before COVID, and this year, the Korean market is good, right? Is there anything good about Korea ? Corporate profits are declining, the growth rate is stuck at a low 1%, and the U.S.
is wielding the sword of protectionism, yet stocks have risen significantly this year. yes. So, I am not sure how Korean stocks will trend, and while this is not the place for me to discuss this today, Buffett has tremendous pride in the U.S. and a belief that it will do well, and stock market indices have strong resilience.
yes. Since the KOSPI has never fallen for two consecutive years since the 2000s, the market is a mis-market, and if one holds long-term optimism, then in fact, when it fell, it became an opportunity for me . Especially in a sideways market like ours where growth is stalled, the truth is that if you don't buy when the price drops, there is virtually no opportunity to make money; when the market falls, we feel a sense of fear as if the world is ending.
yes. But it seems like Buffett made a bit of contrarian investing . Also, unless it is such a terrifying moment, people would not sell the stocks of such a blue-chip company cheaply, and since Buffett essentially has a clear standard for value, he takes advantage of such situations . We have now viewed stocks from a trading perspective, haven't we?
Oh, there is a lot of uncertainty about whether the Fed will raise or lower interest rates in September . So, it is about buying or selling stocks, but when we buy Buffett's stocks, the perspective of price trading is based on the intrinsic value of the company . That is why Buffett’s investment approach incorporates a business-like perspective .
Acquiring a company also means buying it 100% as a partner in my business and making it a subsidiary. Even if you buy a 5% or 10% stake, that perspective is involved. So, let me explain from the perspective of running a business. Traders who buy and sell stocks can buy and sell stocks based on the Federal Reserve's decisions.
If I run a business, whether the Fed raises or lowers interest rates, I'm not going to close it down and start it again, you know. yes. Because such a perspective is incorporated and the view on value is clear, if viewed from that perspective, it is a performance where the margin of safety becomes very large when the stock market crashes, making it a natural opportunity for value investors.
But even if I’m not someone like Lawfit, while working at this securities company, when the people around me lost a lot of money, I just said, "Yes, yes." This is n't some great insight, but reading a big fire from the resistance of fear is, in the near future, the appearance of the coronavirus. People who bought stocks even below 2,000 made a lot of money, and during the IMF foreign exchange crisis, the stock market went up tenfold.
So, in my opinion, from an investor's perspective, it seems necessary to think a bit contrarian, especially when stock prices plummet . Looking back, that was indeed an opportunity. However, Buffett says that it is human nature to get nervous and want to run away when such an opportunity arises . We say that Buffett said one must show courage during a crisis, but regarding the 2008 financial crisis, Lehman Brothers went bankrupt around September 2008.
But in October and November 2008, Buffett bought a lot of stocks. I bet on the US, doing things like that. But now that I'm coming out of this book, I realize that if I had delayed that decision by just three or four months, I would have bought it much cheaper . Because the peak of the US market was at the end of February 2009.
But if you look at the long history, it's being phased out. It is absolutely impossible to catch the bottom, and even someone like Beoppit cannot catch it, but if you buy when that margin of safety is roughly secured, well, in the long run, it seems the stock market has provided protection. Well, of course, I did buy it a bit early about four months back then, but it also showed that if you hold out, it will go up .
However, the point is that there must be a foundation of value and a perspective on it. If many of you are just beginning to learn about Warren Buffett, I think it would be really beneficial to start by learning how to distinguish and compare price and value, if that is what you want to take away from it .
In that regard, there is one thing I really want to mention: interest in corporate governance is growing in Korea as well. Uh, 30% of the profits I earned are treasury stock . hmm. From that perspective, it is not good behavior. You buy company stock with company money, you know. Then I have the opportunity to earn more money than buying company stock with company funds .
Then buying back treasury shares is not right. That act is essentially handing over the fire of long-term shareholders to short-term investors trading the company's stock . So, what Lawfit emphasizes is the argument that you should buy treasury stock when the price is significantly undervalued compared to its intrinsic value.
So, some argue that even in the U.S., it is considered an excess of shareholder capital. In my opinion, buying back treasury shares with a portion of earnings does not help corporate value. The key point you mentioned earlier is that you always have to compare price and value . So, even when buying your own company's stock with your own money, you have to buy it low when it's cheap.
Oh, of course. You shouldn't buy it when it's expensive . Because that is, after all, capital allocation and asset distribution, and is being done with the money of all shareholders . The most important person making such decisions is the company's CEO, isn't he? Also, Buffett places great importance on the CEO.
There are also cases where investments were made based solely on the CEO. sure. yes. Well, it 's a key criterion. Well, things like See's Candy or Neborescanitcher are local companies, and I did this based on what they possess . Ultimately, Buffett... well, back in the day, there was Salomon Brothers, which was essentially the predecessor of Lehman Brothers.
There was financial misconduct, and due to misconduct by executives and bond dealers and the CEO's indecisive handling of the situation, the company almost went bankrupt in the 90s. So, Benjamin—ah, Warren Buffett—was an investor, a preferred stock investor, but due to various issues, he managed the Salman Brothers.
As CEO. hmm. Now, even while doing that, I think I felt those things even more. This cheating. You have to be careful about these things and value honor. So, while Buffett is simply someone who pursues extreme efficiency, in a way, he is also a bit of a romanticist. Uh, it seems like they also have the philosophy that ultimately, we have to be good to make money .
So, it remains a legend even now. It was Nebraska Furniture, a general store that sold furniture and carpets, and they ran a big business in the U.S.; later, there is even a legendary video of them holding a press conference together with the female CEO of the place that Buffett had invested in . While explaining why he invested, he said, "I do n't know if he passed away, but he probably worked until he was over 100 years old." Those sons did it, and yes, they did it that way.
That's amazing. In that regard, while we in our country should certainly learn a lot from Buffett's investment style, I also found myself thinking once again about just how many executives there actually are who could catch his eye . He also places a lot of emphasis on honor. The point is that people on the Berkshaw board and the like basically don't have that high salaries .
Although the salary wasn't mentioned, and specifics weren't given, honor is important, so they talk about things like social directorships . Well, in the U.S., if you get a Social Scientist degree or something like SP 500, it seems you earn about 200,000 to 300,000 dollars . yes . But a social worker's salary should n't be the main source of that person's income.
hmm. hmm. Then, regarding the social opinion, it is actually difficult for a company to speak independently about the social opinion. Also, if they do speak independently and raise various objections, there are many lines of resistance from the company's social opinion . But at least with that level of social studies, you should be able to manage .
If someone says they need to earn a salary sufficient to make a living by taking two or three social studies courses, who can really argue with that from the perspective of an ordinary person? We have no choice but to be mindful of the largest shareholder. That is why Warren Buffett also emphasizes the honor of these Berkshire directors.
The salary from the board of directors must not become that person's primary means of livelihood . It's like this. But if you look at it that way, isn't that something only rich people can do? You could look at it like this, you know. That could be the case. yes. That could be the case . That is a condition that restricts the person's actions, and to that extent, in a way, it emphasizes things like honor.
In our country, the Commercial Act is being amended one by one, and with the expansion of the separate election of audit committee members to allow the board of directors to keep the chief executive in check, I have been thinking about this aspect as well . Actually, Will Buffett used to work with POSCO, which was a private company back then.
Well, lastly, companies like Daegu hardly invested in South Korean companies, right? Right now, if Warren Buffett were in his 60s in 2025, I do find myself wondering if he would invest in Korean companies . Well, if I look into it, he has invested in Japan as well. Also, since I need to understand Buffett well, and because he is fundamentally a long-term optimist regarding the U.S., he mentions several times in his books that the U.S.
is now their primary investment stage. So, it's a puppet. I'm a total investment otaku, because back in the day, securities companies used to give out something called an investment handbook. There is something like caregiving for the company. So, I looked at the ones in the U.S. and the monthly laws, and I also looked at the ones for Japanese listed companies.
It means that I watched the overseas results and then watched the overall awards . Looking at it that way, it seems that in the early 2000s, Korea accumulated so much capital immediately after the foreign exchange crisis that there were many stocks with a secured margin of safety. That handbook is kind of like a phone book; it just puts a page or two in each section detailing what a company does, what it was like in the past, and things like that .
It's contained . Really hundreds of pages. Something even thicker than this book . I've noticed that things like that still come out occasionally. yes . That is correct. So, I consider trust to be very important. So, well, this is kind of a bit of a boast for our company, but... a new type of securities, yes.
Even companies like the new securities firm are still being held by people who are practically Buffett's partners . I also went to New York, visited, and met them . Of course, long-term relationships can now be viewed from various perspectives . Since you hold the stock for a long time and recover your investment capital through dividends, I think a long-term relationship is very important.
The new securities firm where Specialist Kim Hak-kyo works is famous for having many long-term investors, and it is also known for being somewhat different from the financial world where money circulation is very fast. Corporate culture, too. Uh, it’s a bit difficult for me to evaluate, but anyway, rather than saying it’s necessarily good, I think it’s definitely different.
yes. Speaking of organizational culture, Warren Buffett also emphasizes that a lot. And there weren't many people at the headquarters in Berkshire Hathaway, either. yes . It said there were about 20 or 30 people in the book . With so many subsidiaries and an enormous asset scale, if you look at it, people come in.
Yes, it means that there are no obstacles in business operations, and 20 people know everything. One floor of an office building is all it takes, and if you've invested, you just trust and leave everything to that subsidiary . Yes. So, essentially, it’s not that our country’s parent company is interfering with its subsidiaries or financially transferring them.
So, basically, the subsidiary has to handle everything on its own regarding what the company called Berkshire Hathaway does . Of course, if the CEO makes a mistake, they will replace him. yes yes. So, as I mentioned earlier, the role of the subsidiary company known as Birxway is resource allocation and investing the money earned by its subsidiaries— particularly the premiums received by its major insurance subsidiaries—in various places.
Therefore, since they have a comprehensive planning office, the relationship is not fundamentally one where the subsidiaries simply tremble in fear whenever an audit is conducted. In a way, all you have to do is appoint the CEO and the directors well, distribute rewards based on performance, and hold them accountable.
yes . That is all you have to do, and I think the reason there are fewer mistakes is that I am very careful from the very beginning when choosing. Of course, now that Berkshire has about 70 subsidiaries, and in the case of General Reinsurance—is that it?—there have been instances where they suffered immensely because they took the wrong position, so it is not a market that operates with 100% certainty, but it is still a culture where people basically trust and leave things to them.
It’s not that there isn’t a company that hasn’t caused trouble, but rather that we are building companies that manage themselves in a more sound manner, statistically speaking. Uh, looking at Burke stock recently, a share that was about $750,000 went up to around $800,000, so a single share went up to 1.3 billion or 1.4 billion, you know?
That is the thing. This time, I think the general shareholders' meeting of A.B.K. was on May 3rd. It's Saturday. I did it on May 3rd . May 2nd was the peak. $ 810,000. So, after Buffett announced he was retiring, it dropped a bit. It falls. yes. The next CEO, named Braig, has a very heavy burden on his shoulders, but during that period, the SMP 500 rose by about 15%.
hmm. However, since the market has dropped by about 10%, and investors are feeling a bit uneasy and LawFit is also quitting, it seems that these concerns are being reflected in the stock price. Director, what do you think? Of course, Warren Buffett has n't just been watching Greg for a year or two; he has established a succession plan for a very long time and has now appointed a vetted individual.
However, regarding the next chairman, the "Buffett premium" is dropping somewhat in the stock price. So, will Berkshire Hathaway really be able to perform just as well as it did when Charlie Munger and Warren Buffett were there ? How is it? Ah, I think it would be quite a challenge. But what Beopji always says is that we have established a good structure, and that our competitiveness basically lies in our holding companies and the subsidiaries having autonomy.
And even so, he says that he is a better person than me. Yes. I think organizations and things like that have dynamics. So, from my perspective, while I hope that Burke, who symbolizes value investing, does well, I wonder if the Burke Healthway—which lacks something and Buffett—can simply function as an organizational system.
My thoughts are n't based on a value judgment of whether it will succeed or fail, but rather I think it will stand on a testing stage for about three or four years. Also, US stocks have been rising for about 13 years . yes. Well, we do n't know when it will fall, but there is no asset without a cycle.
So, when the bear market came, actually, Buffett did well in hindsight, but about once every 10 years, he got a lot of criticism for losing his touch. Oh my, I got a lot of flak back during the last COVID . Back then, when coins were skyrocketing, there was basically a somewhat contrarian aspect to value investing.
Since I'm not buying because it's trending but because I'm buying undervalued stocks, there is basically some pressure like that. So, actually, when we passed by and looked, wow, they really held on and succeeded. However, since every single moment of that period is difficult to endure, I am a little worried about what will happen to Burgschall without Munger and Buffett .
There is a bit of emptiness. At the general shareholders' meeting next May, what exactly will others be able to bring to fill Buffett's void? And also, putting aside the results, I think people like 'Ah, Grae,' who are over 90 years old, will really miss that kind of humor and insight, even though it might seem like a bunch of old men.
But Warren Buffett also built up a massive amount of liquid assets before he left . yes. yes . You mean you're looking for an opportunity. I always have money. Of course, that is why the media is misinterpreting this; you should n't assume that because Woffett has stockpiled a lot of cash, he is predicting that a crisis is coming .
And the structure itself keeps bringing in money . The insurance premium. That is because the structure allows cash to accumulate as insurance sales go well. Well, now, it is a bit difficult to interpret it too mechanically. So, when the day comes in the future when Craig Weibel executes the massive cash assets Warren Buffett has prepared, we will once again realize that Buffett is indeed Buffett.
Of course, this is hindsight, but... Today, I am reading the complete edition of the Wallon & Beep Bible, which is over 900 pages long and includes the final story . I would like to ask you to read aloud one of the key passages that runs through this book . Yes. This is a passage from this book. This is what Buffett said.
We can lose money . It is okay to even lose a lot of money . hmm. However, you cannot lose your reputation. You must not lose even the slightest bit of your reputation . In what sense did you pick this passage? Long-term relationship. yes. Fundamentally, I believe that faith in the world and such are contained within this passage.
He also spoke of how a reputation fought for over 10 years can crumble in just five minutes. He is a figure who has given us much guidance, acting like a teacher or mentor through his conduct and daily life. As you read this book, I hope our listeners and subscribers will take away at least one thing, especially from Warren Buffett's life or investments .
What could there be? yes . Let's stick to what we know. Let's stick to what we know. yes. Warren Buffett has been investing since 1942. But there are about ten categories that created this person's fire. hmm. We may not be able to do it like Buffett, but investing with too short a view is fine for financial companies that handle these transactions, but it does n't help the investor much.
I need to buy what I know at a good price. Then, it is difficult to make money through investment by taking a lot of action. I would like to recommend that you act less and think more. Many people think little and act a lot, acting first and thinking later. yes. There are cases like that, too. Conversely, thinking a lot and acting little is also one of Buffett's teachings.
He emphasized the scope of competence once again . In fact, rather than limiting the scope of your capabilities and just doing things within them, you actually need to expand the scope of your capabilities further. It is said that Buffett and Munger read the 500-page " Teacher's Guide" every day, and even a 940-page book takes Buffett two days .
yes. So, today we were joined by Executive Director Kim Hak-kyun, Head of the Research Center at Shinhyung Securities, for the definitive edition of the Warren Buffett Bible. Thank you for your words. thank you . Thank you.
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