The delayed gratification skill, the Warren Buffet way

The delayed gratification skill, the Warren way.

The teenager stand up with great confidence in front of the top guys and the audience.

He spoke in behalf of his father and told the audience in one sentence his conclusion about the Warren Buffet method: The delayed gratification skill.

From there, he became the adult in the room, he explained how the patience and the long term investment strategy pay out big in a great country like USA. Eventually he asked Warren about his opinion on the subject.

The master of the real value investment and the magician of the compound interest rate answered with calm agreeing with his opinion but added a nice recommendation, which is basically a very nice practice to spend three to four cents for every dollar earned.

Warren and Charlie sat down in the old fashion way, without any fanfare and without any fancy presentation, they gave the lecture while snacking candies and drinking coca-cola and made feel the audience the real value and power of their stories and their huge experience.

Warren emphasized they were not in the advicing how to make a good investment business but in the real value investment business , where they own the companies for the long run.

Owning the business, gives them time and time is of the essence for the long term investment strategy. A real example is the well known long position they have with Coca-Cola, they purchased the stock at the right time and stick with it for the long haul.

They have been activist investors for the Coca-Cola stock even before the term activist investor was coined. The same happens with American Express, they bet in the original concept of traveler’s check devised but Amex and they continue to holding a long position with the stock even in light of the rapid changes the fintech sector is facing. It is was very hilarious the way Warren told the young audience the real origin of Amex as a transportation company called the Pony Express to explain them how the companies who adapt quickly to the changing times afford to survive.

Another real example of the great results they have obtained with their long term real value investment strategy was the fact they had the founder of Microsoft and the Apple's CEO under the same roof at their annual meeting. They were not afraid to change their mind about the Apple stock and they support their words with actions, becoming the largest Apple shareholder; basically they put their money where their mouth is.

In a great demonstration of confidence, Warren told they audience very straightforward they can get fifty percent of return out from one million dollar at any given time or they can figured out how to do it, but things get more interesting with hundred million, with hundred million, things scalate up very fast like a rocket.

Perhaps, underneath the lecture, the hot topic was about the succession, but clearly their huge magnetism and their real capacity to lead overcame any attempts to force a management change for Berkshire Hathaway this year. Kidding aside, they are again like kids, drinking coca-cola, snacking candies , having fun , making jokes and with the strong desire to continue playing the infinite game.