Mental Model: The Definition of Cognitive Dissonance

I recently came across on Twitter one of the most bizarre letters I have ever read. This one letter addressed to Warren Buffett on why this investor is no longer going to be an investor of the company is probably one of the most convoluted and bat-shit insane thing I have read in awhile. I’ll keep it short for you this weekend – just the letter.

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An In-Depth Interview of Alice Schroeder, Author of The Snowball

I'm pretty sure "Finest Steaks in the World" is a lie (no offence Warren and Gorat's).

I recently came across an excellent in-depth interview of The Snowball by Alice Schroeder. For those of you who need a quick refresher, The Snowball is “the” biography of Warren Buffett. It is an amazingly detailed, meticulously researched, and solidly written book that gives an intimate glimpse into the personal and professional life of Warren Buffett. I once made the mistake of giving it as a gift to a friend who had not interest in business and he didn’t make it past 20 pages. However, if you enjoyed The Snowball and appreciate all things Buffett and Berkshire Hathaway, you’ll love this interview. Here are a few curated excerpts of my favourite parts of the interview (as the full interview is extremely long – apparently snippets of my favourite parts has turned out pretty long too). Read the full interview here.

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Charlie Munger’s Secret Investing Formula

Charlie Munger's Secret Investing FormulaOne of the questions asked at the 2015 Berkshire Hathaway Annual Meeting was in regards to what the secret investing formula Warren Buffett and Charlie Munger utilized to achieve such tremendous success over their careers. If you read that giant write up on our road trip to Omaha for the annual meeting, you would know that the answer that was given by Charlie Munger was that there was no specific formula. However, I was recently perusing Poor Charlie’s Almanack and Munger actually provided a specific formula! It’s such a no brainer. I really think Charlie outdid himself with this tremendous formula. Take a look. It will change your life.

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The Berkshire Hathaway Roadtrip Edition

IMG_1591Howdy. It’s been awhile. I can’t believe it’s been almost 3 weeks since I posted last (on that long hiatus post). I apologize for not posting some stuff along the road trip like I said – we were having too much fun and I was watching too much cable tv. Listen: we don’t have cable or any tv at home and I love getting my cable tv binge when we are on vacation. I must have watched at least 20 episodes of Naked and Afraid and at least 2 million episodes of Forensic Files. Yes, I did that rather than updating you along our travel. Deal with it.

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It’s Been Awhile: Annual Reports, Starcraft II, Playoff Hockey, and Berkshire Hathaway

IMG_1033I must apologize for having been absolutely MIA for the last month. My attention from blogging was pulled away by a plethora of other interests. Namely, reading, video games, the great outdoors, and hockey. I just had no energy left to focus on writing much with all this going on. We’re leaving on our great American road trip tomorrow, with the Berkshire Hathaway Annual Meeting as the end destination. Come check out what’s been going on lately.

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A Quick and Dirty, Back-of-the-Envelope Method for Valuing Berkshire Hathaway

the intrinsic value of berkshire hathawayBerkshire Hathaway is a bit of an anomaly when it comes to conducting a valuation of the business. On the one hand, it is an incredibly complex, and often times secretive, operation where getting exact details of quantitative data can be incredibly difficult. For example, if you peruse the annual reports or 10Ks, the income statement will be presented in a very general sense but not provide details on each individual business unit. However, on the other hand, Warren Buffett has dropped a ton of hints along the way in his annual letters on what he believes is the intrinsic value of the business. Seeing as the most recent annual report has recently come out, Berkshire is on my mind. So let me give you an introduction on how to do a quick and dirty calculation to figure out the intrinsic value of Berkshire Hathaway.

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