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“Mr Macaroni needs to align his processes. He cannot continue as an activist against policymakers while also depending on them for his business. One policy decision can affect or even shut down your business. You cannot be actively involved in business and activism at the same time,” — Tolu...

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Warren Buffett on the biggest investing mistake of his career: Buffett explains that early in his career, he was taught by Ben Graham to buy stocks on a purely quantitative basis, hunting for things that were dirt cheap. He calls this the "cigar butt" approach: "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 this terrible looking soggy ugly looking cigar one puff left in it but you pick it up and you get your one puff disgusting it's thrown away but it's free. I mean it's cheap and then you look around for another soggy you know one puff cigarette." That's exactly how he bought Berkshire Hathaway. The stock was selling below its working capital. He got the plants, the machinery, the inventory, and the receivables all at a discount. It was cheap. So he bought it. The problem? Twenty years later, he was still running a lousy business, and the money didn't compound. Buffett reflects on what he learned: "You really want to be in a wonderful business because there the time is the friend of the wonderful business; you keep compounding it keeps doing more business and you keep making more money. Time is the enemy of the lousy business." This led to one of his most famous investing principles: "I would rather buy a wonderful business at a fair price than a fair business at a wonderful price." Looking back, Buffett admits he could have liquidated Berkshire for a quick profit, taken his "one puff," and started fresh. Instead, he used a struggling textile business as the platform for everything that came after: the insurance business, See's Candy, the Buffalo News. "I would have been way better off doing that with a brand new little entity that I'd set up rather than using Berkshire at the platform."

Black Edge

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