Money and Finance
- Charlie Munger On Projections
From his speech “Academic Economics: Strengths and Faults After Considering Interdisciplinary Needs” (available HERE, HERE, or in Poor Charlie's Almanack): Usually, I don’t use formal projections. I don’t let people do them for me because...
- Li Lu On Understanding A Business…
Via notes from his 2010 lecture at Columbia:You can’t truly understand everything about a business in 1 week. It took me 10 years and I am still learning new things about BYD. It is a continuous learning process. You could spend a lifetime studying...
- Keeping It Simple...
Quotes from the section on 'Simplification' in Seeking Wisdom - from Darwin to Munger by Peter Bevelin. "We have a passion for keeping things simple." -Charles Munger "It's amazing how many people even today use a computer to do something...
- New Debt Forecasts Dash Greece Hopes
The magnitude of Greece’s fiscal challenge was painted in sharp relief yesterday as Athens unveiled new budget projections exceeding the worst-case scenarios envisioned by international lenders when they agreed an €174bn rescue eight months ago. Instead...
- Charlie Munger Quote (projections)
“Mark Twain used to say “A mine is a hole in the ground with a liar on the top.” And a projection prepared by anybody who stands to earn a commission or an executive trying to justify a particular course of action will frequently be a lie...
Money and Finance
Warren Buffett on projections...
From Peter Bevelin’s Seeking Wisdom: From Darwin to Munger:
I have no use whatsoever for projections or forecasts. They create an illusion of apparent precision. The more meticulous they are, the more concerned you should be. We never look at projections, but we care very much about, and look very deeply at, track records. If a company has a lousy track record, but a very bright future, we will miss the opportunity...
I do not understand why any buyer of a business looks at a bunch of projections put together by a seller or his agent. You can almost say that it's naive to think that those projections have any utility whatsoever. We're just not interested.
If we don't have some idea ourselves of what the future is, to sit there and listen to some other guy who's trying to sell us the business or get a commission on it tell us what the future's going to be—like I say, it's very naive.
………………..
Related previous post: Alice Schroeder on Warren Buffett’s filtering process
- Charlie Munger On Projections
From his speech “Academic Economics: Strengths and Faults After Considering Interdisciplinary Needs” (available HERE, HERE, or in Poor Charlie's Almanack): Usually, I don’t use formal projections. I don’t let people do them for me because...
- Li Lu On Understanding A Business…
Via notes from his 2010 lecture at Columbia:You can’t truly understand everything about a business in 1 week. It took me 10 years and I am still learning new things about BYD. It is a continuous learning process. You could spend a lifetime studying...
- Keeping It Simple...
Quotes from the section on 'Simplification' in Seeking Wisdom - from Darwin to Munger by Peter Bevelin. "We have a passion for keeping things simple." -Charles Munger "It's amazing how many people even today use a computer to do something...
- New Debt Forecasts Dash Greece Hopes
The magnitude of Greece’s fiscal challenge was painted in sharp relief yesterday as Athens unveiled new budget projections exceeding the worst-case scenarios envisioned by international lenders when they agreed an €174bn rescue eight months ago. Instead...
- Charlie Munger Quote (projections)
“Mark Twain used to say “A mine is a hole in the ground with a liar on the top.” And a projection prepared by anybody who stands to earn a commission or an executive trying to justify a particular course of action will frequently be a lie...