Managers should learn more about investing · Transcript

WarrenI think the corporate types, the corporate managers, ought to study investing better because they'd be better managers. And I think that everyone who thinks through the investment process learns more about how the world really works. And I think that's very worth having. Charlie made a very good point there about how managers could do better if they understood investments. I find it absolutely fascinating, and I've seen this throughout my life. I've seen it close up. I will have friends who are CEOs of companies, and they'll have somebody else handle their money. If you say to them, you know, should you buy Coca-Cola or Gillette or something like that, they'll say that's much too tough. I don't understand that sort of thing. What do I know about investing? And then some investment banker will walk in the next day with the idea they buy a $3 billion company, which is just buying a lot of shares of stock of one company. and they'll run through some little two-hour presentation and turn it over to a strategic planning group and think that they are then the ones that should make that decision as to whether to buy multi-billion-dollar businesses when they really don't feel they're qualified to make $10,000 decisions with their own money.