QuestionerWhat do you recommend for an approach to getting better and better at valuing companies?
WarrenThat was a very, very good question. And in my own case, you know, I started out without doing anything about valuing companies. And then Graham taught me a way to value a certain type of company that would prove successful, except the universe of those companies dried up. But nevertheless, it was almost a guarantee against failure, but it was not a guarantee that these things would continue to be available. Charlie taught me a lot about the value of a durable competitive advantage and a really first-class business. But over time, I've learned more about various types of businesses. But you'd be amazed how many businesses I don't feel that I have. understand well the biggest thing is not how big your circle of competence is but knowing where the perimeter is if you you don't have to be an expert on 90% of the businesses or 80% or 70 or 50 but you do have to know something about the ones that you actually put your money into and if that's a very small part of the universe that still is not a killer and I I think if you think about what you would pay for a McDonald's stand what you think you would pay for, you know, think about the businesses in your own hometown, the Lathai. You know, which would you like to buy into? Which do you think you could understand their economics? Which do you think will be around 10 or 20 years from now? Which do you think it would be very tough to compete with? Just keep asking yourself questions about businesses. Talk about with other people about them. You will extend your knowledge over time. And always remember that margin of safety. And I think you basically have the right attitude. because you do, you recognize your limitations and that's enormously important in this business. You will find things to do.