Friday, December 24, 2010

Warren Buffett


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BornWarren Edward Buffett
August 30, 1930 (age 80)
Omaha, Nebraska, U.S.
NationalityAmerican
Alma materUniversity of Pennsylvania
University of Nebraska–Lincoln
Columbia University
OccupationChairman & CEO of Berkshire Hathaway,Investor
SalaryUS$100,000
Net worthincreaseUS$45 billion (2010)
SpouseSusan Thompson Buffett (1952–2004)
Astrid Menks (2006–present)
ChildrenSusan Alice Buffett
Howard Graham Buffett
Peter Andrew Buffett
Signature

Mr. Buffett


I don't have a problem with guilt about money. The way I see it is that my money represents an enormous number of claim checks on society. It's like I have these little pieces of paper that I can turn into consumption. If I wanted to, I could hire 10,000 people to do nothing but paint my picture every day for the rest of my life. And the GDP would go up. But the utility of the product would be zilch, and I would be keeping those 10,000 people from doing AIDS research, or teaching, or nursing. I don't do that though. I don't use very many of those claim checks. There's nothing material I want very much. And I'm going to give virtually all of those claim checks to charity when my wife and I die. (Lowe 1997:165–166)





A market economy creates some lopsided payoffs to participants. The right endowment of vocal chords, anatomical structure, physical strength, or mental powers can produce enormous piles of claim checks (stocks, bonds, and other forms of capital) on future national output. Proper selection of ancestors similarly can result in lifetime supplies of such tickets upon birth. If zero real investment returns diverted a bit greater portion of the national output from such stockholders to equally worthy and hardworking citizens lacking jackpot-producing talents, it would seem unlikely to pose such an insult to an equitable world as to risk Divine Intervention.






““My luck was accentuated by my living in a market system that sometimes produces distorted results, though overall it serves our country well... I’ve worked in an economy that rewards someone who saves the lives of others on a battlefield with a medal, rewards a great teacher with thank-you notes from parents, but rewards those who can detect the mispricing of securities with sums reaching into the billions. In short, fate’s distribution of long straws is wildly capricious.”
. (Buffett Says ‘Capricious’ Economy Requires Charity (Update1) by Hugh Son, Bloomberg, June 16, 2010 16:17 EDT)

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