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QuestionerI know you lost a lot of money as a result of 9-11, but I would like to know how 9-11 changed your life and your investment strategy.
Ajit Jain9-11 made everybody realize that they weren't charging for, and they either had to exclude those exposures or they had to charge for them. We have sold a fair amount, quite a large amount, of terrorism insurance that excludes what we call NCB, nuclear chemical and biological. as well as fire following nuclear. There, an act or two or three coordinated could cause damage that would destroy the insurance industry.
QuestionerAnd what advice do you have for young people like me in selecting two friends and future business partners?
WarrenThe real question is, what do you like in other people? I mean, what do you want from a friend? And if you'll think about it, there's certain qualities that you admire other people, that you find likeable, that you, and cause you to want to be around certain people. And then look at those qualities and say to yourself, which of these is it physically or mentally impossible for me to have? And the answer will be none. You know, I mean, you, it's only reasonable that if certain things attract you to other people, that if you possess those, they will attract other people to you.
QuestionerI wonder if you could give us a glimpse to your investment process. way you approach, looking at a particular industry. If we were watching a discussion between you and Charlie, hashing out the merits of real estate, how it would go?
WarrenWell, it would go like all our other conversations. He would say no for about 15 minutes. And I would gauge by the degree to which he, the motion he put into his nose, whether he really liked the deal or not.
QuestionerWhat things would you recommend that someone do if they wanted to become a great investor?
WarrenYou have to be realistic. You have to just define your circle of competence accurately. You have to know what you don't know and not get enticed by it. You can't be, you have to have an interest in money, I think, or you won't be good in investing, but I think if you're very greedy, it'll be a disaster because that will overcome rationality.
QuestionerAre you and Mr. Monker wearing fruit of the looms? Charlie?
WarrenI think I better answer the question. I can answer unequivocally. I am wearing food of the loom. And I'm not sure whether Charlie wears underwear, do you?
CharlieI haven't. I haven't bought any new underwear in a long time, and therefore I'm inappropriately attired.
WarrenHe's waiting for a discount. Don't let him kid you.