저자: 미상 · 외국인
요약 보기
버핏은 소액으로 높은 수익을 내려면 작은 기업(시총 5천만~20억달러) 중심으로 저평가 종목을 찾고, 남들이 무시하는 틈새에 집중하며, 좋은 기회가 오면 자금을 크게 집중 투입해야 한다고 설명. 대형주는 경쟁이 치열해 저평가 가능성이 낮다고 주장. 과거 GEICO 투자 사례(1951년 1만 달러 투자, 2년간 50% 상승)를 근거로 듦. 개별 자산의 향후 가격 방향 예측 발언은 없음.
다듬은 글
you could earn 50% per year. The answer in my case would be this. That would be all you knew about money—it was a mistake. And in this video you will find out why. You see, there's an old saying: to make money, you have to have money. This means that if you want to earn attractive investment income, you must first possess significant capital.
As you will now hear from Warren Buffett, this is not true at all. In fact, when it comes to high investment returns, starting with relatively small amounts of money can be an advantage. Listen to Buffett's answer to the question of how he would get 50% profit if he were starting all over again with little capital.
The answer in my case would be: it would be processing 20,000 pages. And since we're talking about railroads, you know , I went through Moody's Transportation Handbook a few times, which was 1,500 or 2,000 pages, probably 1,500. And I found a lot of interesting things when I was 50 or when I was, uh, 20 or 21 .
I don't think there's anyone here who knows about the " Green Bay and Western Railroad Company ," but there were hundreds and hundreds of railroad companies. And I loved reading about each of them. "Green Bay and Western," uh , everyone had nicknames for railroads back then. I mean, the Northern Pacific was called the Nipper.
And you know, "Phoebe Snow" was one of those back east who went to Cornell. And, uh, Green Bay and Western was called Grab Baggage and Walk , GBNW, and they had a bond that was actually common stock, and a common stock that was a bond. And you know, it could lead to unusual things, but they wouldn't work if you were operating with many millions of dollars.
But if you were collecting them in large quantities, which is what I did, actually, that's what impressed Charlie when we first met, because I knew all the details about these little companies on the West Coast that he thought I'd never heard of, but I knew about the Los Angeles Athletic Club or something like that.
He thought he was the only one who knew about it , and it became an instant point of contact. So, to answer your question, I don't even know what the equivalent of Moody's directories would be now, but I would try to learn everything about every little thing, find something, and with a million dollars you could make 50% per annum.
But you have to be in love with your work. You can't be in love with money alone. You have to take this as an exciting journey, you know? It's how people find things in other fields because they just enjoy the process of searching. A biologist is looking for something because he wants to find it, it's built into...
I don't really understand how the human brain works, and I don't think anyone understands it well enough, but there are different people who are just interested in expanding their knowledge in a certain field. I know great bridge players, great chess players, by the way, Kasparov came to Omaha and met Mrs.
B. I've been lucky enough to meet many people who are incredibly smart in their field but do incredibly stupid things in other fields. So all I know is that the human brain is complex, but it works best when you find something it's really suited to and then just give it your all , and that's what I would do if I had a small amount of money and wanted to make 50% per annum, but also wanted to just play this game; You can't do that unless you find something that interests you, whether it's bridge, chess, or , as in this case, finding undervalued securities.
But it seems to me that you are on the right track. I mean, anyone who comes to this annual meeting has more on their minds than just bridge or chess. So I'm glad you came, come again next year. There are three extremely important principles from Warren Buffett that you must follow if you want to make high profits from small amounts of money.
We'll get to that list soon, but first a little background on Warren Buffett to contextualize his comments from this video. Buffett is the CEO of Berkshire Hathaway , a conglomerate with a market value of a staggering $900 billion at the time of this video. When it comes to investing, more doesn't always mean better.
As a portfolio or business, as in the case of Berkshire, gets bigger, so does the amount of investment needed to, as Buffett puts it, " move the needle" of results. For the sake of illustration, let's assume that an investment would have to be 5% of Berkshire's current value to be significant enough.
5% of 900 billion is 45 billion. To estimate the figure of 45 billion, look at a few well-known companies with market capitalizations around that size. This is the clothing brand Adidas, the food company Kraft Heinz, owner of the eponymous brands Kraft and Heinz, as well as Oscar Mayer, Kool-Aid, Lunchables and Jell-O.
There is also the automaker Hyundai—a company that generated $121 billion in revenue in 2023. All of these companies are huge, and their every move is carefully scrutinized by professional investors. Given how popular these companies are, it is highly unlikely that their shares will ever be significantly undervalued.
This brings us to the first point on our list: focus on smaller opportunities. Buffett has often cited Berkshire's large size as a huge obstacle to generating high investment returns. To quote Buffett's late business partner, Charlie Munger: "It's like being one-legged in an ass- kicking contest. " "One of the little-known secrets of successful investing is avoiding competition." As a general rule: the smaller the company, the less competition from other investors.
When Buffett was first starting out, he would lock himself in a dark, windowless office and study what were known as Moody's manuals. These books contained detailed information about thousands of different companies. Buffett's goal was to find a potentially undervalued investment opportunity. As you can imagine, this process was incredibly time-consuming.
Luckily for us , we now have the internet. We can automate a lot of tedious work using a stock scanner like this one. We simply select the market cap range we want to review. So, in this case, from 50 million to 2 billion. We can also choose the desired P/E ratio. I chose 0 to 15 to filter out unprofitable companies.
This leaves us with a list of about 1,000 stocks worth exploring. These are only stocks traded on US exchanges . The same process can be used to find potentially undervalued opportunities in other countries. Warren Buffett's second principle for how to get high returns from small amounts of money can be summed up in one word: focus.
Okay, I realize this may not seem entirely clear right now, but bear with me, I'll explain what I mean when I talk about focus. Let me tell you a short story about one of Charlie Munger's friends named John Arrillaga. John Arrillaga was a billionaire and real estate developer. With just this information about John, you would think that he owned a bunch of different properties all over the country.
Maybe John's real estate portfolio looked something like this. Office buildings in New York, Chicago and Los Angeles. Apartment buildings scattered across the states of Florida and Texas. Warehouses and industrial facilities throughout the Midwest USA. This is very far from the truth. John Arrillaga became a billionaire by investing in real estate within a two-mile radius of the Stanford University campus in California.
Keeping with the theme of this video, John didn't start with a huge amount of money for investment. As the story goes, he came from a working-class family, one of five children, and the family was short on money. John was able to get into Stanford, but only because of a basketball scholarship. By the time he graduated, he had saved enough money to start investing in real estate, earning it from six jobs at once during the basketball offseason.
Over time, John became an expert in this particular field. He knew her better than anyone else. And that gave John an advantage when it came to investing in local real estate. Over the decades, John Arrillaga became a billionaire by focusing on what he knew best—this relatively small real estate market.
He did not invest in venture capital, private equity funds, or emerging markets. John didn't even invest in other areas of the city. He stayed where he knew how and never left his niche. You can apply this lesson to your own investing. Find your advantage and stick to it. By starting with small amounts, you can focus on something small and niche that wealthy corporations and professional investors might ignore .
This brings us perfectly to Buffett's third principle about how to invest small amounts of money. Focus on your best ideas. At the time of this video, Buffett's Berkshire Hathaway stock portfolio is worth over $375 billion and consists of 47 stocks . It's fair to say that Buffett has a fairly diversified stock portfolio.
However, this was not always the case. Things were very different when Buffett invested small amounts of money. Let's turn back time to 1951. Warren Buffett was a 20-year-old college student in New York City studying under his mentor Ben Graham, the father of value investing. Buffett fell in love with investing while a student in Graham's classes.
At some point, Buffett learned that one of Graham's largest assets was a company called Government Employees Insurance Company, or Geico for short. Buffett had never heard of this company and wanted to know what all the fuss was about. Buffett learned that Geico's headquarters were in Washington, D.C., about a 4-hour train ride from New York.
Wanting to impress his mentor, Buffett took a train to Washington early Saturday morning to visit the company. Buffett approached the office door, but to his disappointment, it was locked. Buffett didn't know that not everyone in Washington works 7 days a week like in his hometown of Omaha, Nebraska.
He knocked and knocked until finally the cleaner let him inside. Fortunately for Buffett, one of the company's executives happened to be working in the office that day . Impressed by Buffett's determination, the executive spent four hours explaining to the young Warren Buffett how the insurance industry works and what makes Geico special.
Shortly after this meeting, Buffett invested $10,000 in Geico stock, about 2/3 of his fortune at the time— money he had earned delivering newspapers and working odd jobs in his youth. Over the next two years, the stock rose 50%. This gave Buffett a net profit of $5,000, which is equivalent to over $60,000 today.
This was Buffett's first significant successful investment and provided the seed capital for his future fortune of $100 billion. There is a very important lesson to be learned from the story of Buffett's youth. Of course , Buffett saw a great investment opportunity in Geico shares, but equally important, he took full advantage of it, investing two- thirds of his fortune.
He didn't just buy a few shares. Buffett has a saying: when gold falls from the sky , use a bucket, not a thimble. Great investment opportunities come along rarely. If you want to get high returns on investments with small amounts of money, you must take full advantage of them when they appear. If you've reached this point in the video, it's clear that you're eager to learn from investment legends like Warren Buffett.
Since that's the case, you should watch this video because it covers the most important moments from Berkshire Hathaway's recent annual meeting. I guarantee you won't want to miss the wisdom Buffett shared. See you there.
Comments 0