Hacker News Reader

Comment by 10ren | Hacker News Reader

I've always heard Buffett emphasizing being rational instead of going with the crowd - even being contrarian.

But I haven't read "The Snowball" - does he reveal something different about it there? (e.g. overcompensation for insecurity?)

View on HN

What I recall from his other writings is that he suggests watching the market, but with different eyes from the crowd. A company with sound fundamentals that suffers bad market news is a buying opportunity. The opposite is harder to find, and the bulk of the profit from his approach comes from time, not timing, so he does not actively look for it.

His mother had emotional issues and he took some verbal abuse as a child. This led Buffett to go out of his way to be liked by others and avoid confrontation at all costs.

That's in his personal life (and is probably why he is so well-liked); but in business decisions, he buys when others are selling (and vice versa). He closed up his first partnership, depressed, because the stock market was booming. He has described himself as being excited when the market falls. (but maybe much of this contrarianism comes from his partner, Charlie Munger, and his mentor Benjamin Graham?)

I think he also supported breaking a strike (at the Washington Post). That ain't nice stuff, and I think he vowed never to get into that situation again. But he did get into the first time.

I think he also supported breaking a strike (at the Washington Post). That ain't nice stuff

What's not-nice about that? Letting a cartel exploit its customers seems like the moral low ground.

If you confront strikers, they won't like you - see the context of this thread.

Reply on news.ycombinator.com