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2014년 10월 22일 수요일

PE 10/21 Warren Buffett Speech – Part 3

Well I’ve made a lot of mistakes. The biggest mistake, well not necessarily the biggest, but buying Berkshire Hathaway itself was a mistake, because Berkshire was a lousy textile business.
* lousy [|laʊzi]: poor quality; inadequate
= terrible; extremely bad; failing
ex> This lousy Internet router keeps shutting down.
ex> All she bought me was this lousy T-shirt.

And the cigar butt approach to buying stocks is that you walk down the street and you’re looking around for cigar butts, and you find on the street this terrible-looking, soggy, ugly-looking cigar – one puff left in it.
* soggy: wet
ex> The paper boy dropped the paper in the grass this morning and when I got it, it was soggy with dew.

You got the plants for nothing, you got the machinery for nothing, you got the inventory and receivables at a discount. It was cheap, so I bought it,. And 20 years later I was still running a lousy business and that money did not compound.
* for nothing: at very small cost
ex> If you look in the classified ads, you can get a used bike for nothing.
* run: to manage or control something
ex> I used to run a bookstore when I was younger.

So you might say I learned something out of that mistake. And I would have been way better off buying better businesses.
* be better off: to have an improved situation
ex> I will be better off just returning the TV and waiting for a sale.


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