Author Topic: Buffett's legacy  (Read 3171 times)

LC

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Buffett's legacy
« on: May 01, 2020, 05:12:49 PM »
There was an off-tangent discussion in the Tesla thread about Buffett and his personal contribution to the world. It got me thinking, what his legacy will be after he passes.

To investors I think he has certainly contributed a great deal of in terms of both philosophy and example of behavior.

To business owners and employees, I also think he did quite a bit to keep businesses operating and people employed. Or perhaps it is a bit inconsistent - i.e. he kept Berkshire functioning but I recall in some of his Partnership letters he complained about having to shut down uneconomic businesses and being labeled "the bad guy". Also there is the 3G/Heinz debacle. But I think part of being a "home" for business owners to sell is an implicit promise that he will keep those people employed. A P/E firm with a heart, if you will.

And I think his biggest contribution will not be realized until after he's gone - which is the giving pledge / charitable ownership of BRK shares to Gates' foundation. Interestingly the giving pledge has over 500B in commitments - more than BRK's entire market cap.

"Lethargy bordering on sloth remains the cornerstone of our investment style."
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bizaro86

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Re: Buffett's legacy
« Reply #1 on: May 01, 2020, 05:28:20 PM »
I think the legacy will at least partially depend on how BRK does after he passes away.

rranjan

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Re: Buffett's legacy
« Reply #2 on: May 01, 2020, 05:43:51 PM »
I will remember him as a great teacher.

Munger_Disciple

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Re: Buffett's legacy
« Reply #3 on: May 01, 2020, 07:11:43 PM »
I think Buffett is a great teacher, phenomenal business leader, one of the greatest investors of all time, and a great philanthropist. I find him to be an inspiring teacher who has an amazing ability to simplify seemingly difficult concepts for his audience to understand. He is also a decent, honest and trust worthy (managing) partner. A great American treasure. His painting Berkshire is likely to last a long time.

SHDL

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Re: Buffett's legacy
« Reply #4 on: May 01, 2020, 08:53:11 PM »
I think one of his bigger but less visible legacies will be that he made financial markets more efficient than they were previously by teaching people how to “correct” Mr. Market when he’s wrong and get paid for doing so.

Viking

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Re: Buffett's legacy
« Reply #5 on: May 01, 2020, 10:38:09 PM »
I will remember him as a great teacher.

+1. I especially like how he questions the accepted financial orthodoxy :-)

His $ going to the Gates Foundation will benefit many.

longinvestor

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Re: Buffett's legacy
« Reply #6 on: May 02, 2020, 07:48:56 AM »
It’s becoming clearer that the buyback program is in place for the next guy. It’s not hard to picture the scenario wherein buybacks can go on for a long enough time to allow 100+ of billions because the valley of underpricing to IV will hold so much water. The elephant will be Berkshire for the next guy. I’ve speculated this but the equivalent of Buffett’s peak ownership of Berkshire (31%) will be retired with his retirement. The next guy’s job will be eased for a long time as he steps into this near impossible shoes.

longterminvestor

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Re: Buffett's legacy
« Reply #7 on: May 02, 2020, 09:39:33 AM »
My thoughts going into the week were “ok, probably not much change” considering Mungers comments. Then I read Bloomstran saying 1 yrs worth of FCF on buybacks and my mind starts to change my thought process. As I sit in my kitchen reviewing quarterly report, I initially found myself extremely mad. Then I said, what is Mr. Buffet teaching me right now?  And that lesson will be different for everyone. For me, couple hours after calming down - it’s confirmation bias can take over. I was calm coming in to earnings, then I read 1 article speculating a monster buyback and my mind melted. Great lesson. And many more. But that’s one for today.

Dynamic

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Re: Buffett's legacy
« Reply #8 on: May 05, 2020, 02:34:37 AM »
Another vote for a great teacher.

I also think it's very clear that his patience far exceeds most investors I see commenting and essentially saying "Swing you bum". Right now in particular, many asset prices are down from their Jan/Feb 2020 peaks but still relatively high, yet many commenters on the internet are making it seem like everything is at bargain prices right now. Another important lesson he's demonstrating now is never to risk multiplying your run of results by zero, so he's being patient and ensuring that Berkshire has ample capital to survive if this situation gets worse and probably to thrive on the other side, when the future outlook is more predictable.

oldschoolvalue

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Re: Buffett's legacy
« Reply #9 on: May 22, 2020, 11:44:28 AM »
Would you attribute value investing as Buffett's legacy or should that be attributed to Graham?
Graham was the pioneer, but Buffett got it out to the masses.

I feel Buffett is also a great marketer because he also had the results to back it up. That propelled him forward.
Pretty much like how the magic formula got so much attention with great results, but then died down because Greenblatt wasn't able to replicate it.

Buffett's business acumen is second to none. That's his legacy IMO.
« Last Edit: May 22, 2020, 11:46:36 AM by oldschoolvalue »