money jungle

Mark Sellers Speech: So You Want To Be The Next Warren Buffett?

Posted in mark-sellers, value investing by moneyjungle on January 9, 2009

Most important, I believe you need to be a good writer. Look at Buffett; he’’s one of the best writers ever in the business world. It’s not a coincidence that he’’s also one of the best investors of all time. If you can’’t write clearly, it is my opinion that you don’’t think very clearly. And if you don’’t think clearly, you’’re in trouble. There are a lot of people who have genius IQs who can’’t think clearly, though they can figure out bond or option pricing in their heads.

Mark Sellers gave the following speech at Harvard Business School, in which he highlights seven behavioral traits that distinguish great investors. This is the best description I’ve seen of the psychological factors underlying value investing.

  • The ability to buy stocks while others are panicking and sell stocks while others are euphoric.
  • Being obsessive about playing the game and wanting to win
  • A willingness to learn from past mistakes
  • An inherent sense of risk based on common sense
  • Confidence in their own convictions and stick with them, even when facing criticism
  • Important to have both sides of your brain working, not just the left side
  • The ability to live through volatility without changing your investment thought process

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