Other[Music][Music][Music] foreign
Otherforeign
Other[Music]a few months ago I just wanted me just aa few months ago I just wanted me just aa few months ago I just wanted me just a couple of lines it says Dear polishcouple of lines it says Dear polishcouple of lines it says Dear polish I remain incredibly impressed by whatI remain incredibly impressed by whatI remain incredibly impressed by what you have done are doing and will do andyou have done are doing and will do andyou have done are doing and will do and dakshita it is simply terrific far moredakshita it is simply terrific far moredakshita it is simply terrific far more impressive than what business tightensimpressive than what business tightensimpressive than what business tightens investment gurus and famous politiciansinvestment gurus and famous politiciansinvestment gurus and famous politicians ever accomplish I'm glad my annualever accomplish I'm glad my annualever accomplish I'm glad my annual report doesn't get compared to thereport doesn't get compared to thereport doesn't get compared to the dakshila annual report it's an honordakshila annual report it's an honordakshila annual report it's an honor even to be quoted in it with adminationeven to be quoted in it with adminationeven to be quoted in it with admination Warren Buffett's Maurice this is amazingWarren Buffett's Maurice this is amazingWarren Buffett's Maurice this is amazing will you come and sit here I'd like towill you come and sit here I'd like towill you come and sit here I'd like to I'd like to ask you to sorrow with yourI'd like to ask you to sorrow with yourI'd like to ask you to sorrow with your relationship with one and I want torelationship with one and I want torelationship with one and I want to inspire you to follow his model what areinspire you to follow his model what areinspire you to follow his model what are the learnings from for us you mentionedthe learnings from for us you mentionedthe learnings from for us you mentioned that in your book with them thoughthat in your book with them thoughthat in your book with them though investor you've mentioned that again isinvestor you've mentioned that again isinvestor you've mentioned that again is on the very first page the successfulon the very first page the successfulon the very first page the successful patels and the gujaratis and as you canpatels and the gujaratis and as you can
Questionerpatels and the gujaratis and as you can see a lot of us from that ethnic background but we'd like to know what you have picked up and the synthesis of the dental investor and the success that you've seen give us some examples we live through turbulent times up and down every few years and we're going through some exceptionally difficult times at this moment what do we make out of this where do we bounce back even better about this one more thing you had an amazing Safari experience you can tell us about that we had to offered some spots to White viewers to serve monish on the Safari experience one of the persons who went there was Herman who is from Johannesburg the wife here from Johannesburg and the likely future president of South Africa but you spent some time with him and maybe you can share some inside information about that as well and tell us about the Starboy
Otheras well and tell us about the Starboy and streams as well if you can butand streams as well if you can butand streams as well if you can but welcome and welcome to you thank you forwelcome and welcome to you thank you forwelcome and welcome to you thank you for that gracious introduction Moyes and andthat gracious introduction Moyes and andthat gracious introduction Moyes and and pradeep I wish my kids were here topradeep I wish my kids were here topradeep I wish my kids were here to listen to it I might think a littlelisten to it I might think a littlelisten to it I might think a little higher of me than they do right now buthigher of me than they do right now buthigher of me than they do right now but no I've been overwhelmed by theno I've been overwhelmed by theno I've been overwhelmed by the hospitality of IPL National chapterhospitality of IPL National chapterhospitality of IPL National chapter pradeep and and the other white viewerspradeep and and the other white viewerspradeep and and the other white viewers this is my 25th year in YPO so I used tothis is my 25th year in YPO so I used tothis is my 25th year in YPO so I used to have a head full of hair when I joinedhave a head full of hair when I joinedhave a head full of hair when I joined and I spent many years going through theand I spent many years going through theand I spent many years going through the YPO Harvard program with some of youYPO Harvard program with some of youYPO Harvard program with some of you here like pradeep and Manish and so onhere like pradeep and Manish and so onhere like pradeep and Manish and so on so it's wonderful to see them all againso it's wonderful to see them all againso it's wonderful to see them all again yeah what I'll do is I'll just startyeah what I'll do is I'll just startyeah what I'll do is I'll just start with a story and then I'll maybe go intowith a story and then I'll maybe go intowith a story and then I'll maybe go into into some of the questions you askedinto some of the questions you askedinto some of the questions you asked this is a story from one of prophet'sthis is a story from one of prophet'sthis is a story from one of prophet's letters to his investors in the 1950s inletters to his investors in the 1950s inletters to his investors in the 1950s in 1626 Dutch the original Dutch settlers1626 Dutch the original Dutch settlers1626 Dutch the original Dutch settlers in the New York area what is now New
Warrenin the New York area what is now New York they wanted to buy the island of Manhattan from the Native American aliens so they nominated this guy Peter minion and they told Peter to negotiate with the American Indians to buy the island of Manhattan which was great had a great Harbor and so on so the deal was done for about 60 guilders which is about 24 dollars and the ownership of the island and passed the Dutch and when most people hear the story they think all the Indians got taken for 24. but let's say the Indians had a chief investment officer and they gave the 24 to the invested officer and said please invest it for the benefit of the tribe and let's say this investment officer was not too bright but he could crack out about seven percent a year so if you get a seven percent return there is something known as the the rule of 72
Questionersomething known as the the rule of 72 some of you might be familiar with thesome of you might be familiar with thesome of you might be familiar with the rule of 72 so it's a kind ofrule of 72 so it's a kind ofrule of 72 so it's a kind of mathematical hack to know quickly aboutmathematical hack to know quickly aboutmathematical hack to know quickly about how much time it would take money tohow much time it would take money tohow much time it would take money to tell so if I know that I'm getting seventell so if I know that I'm getting seventell so if I know that I'm getting seven percent a year compounded I can just dopercent a year compounded I can just dopercent a year compounded I can just do 72 divided by 7. it's approximately 10.72 divided by 7. it's approximately 10.72 divided by 7. it's approximately 10. so at seven percent compounded it'llso at seven percent compounded it'llso at seven percent compounded it'll take 10 years to double so the 24take 10 years to double so the 24take 10 years to double so the 24 dollars will become 48 dollars and 1636dollars will become 48 dollars and 1636dollars will become 48 dollars and 1636 and 96. in 1646 and if you take 10 10and 96. in 1646 and if you take 10 10and 96. in 1646 and if you take 10 10 year periods that's ten dollars right soyear periods that's ten dollars right soyear periods that's ten dollars right so that's 2 to the power of 10 and 2 to thethat's 2 to the power of 10 and 2 to thethat's 2 to the power of 10 and 2 to the power 10 is 1024 and we can draw awaypower 10 is 1024 and we can draw awaypower 10 is 1024 and we can draw away the 24 to keep the batterythe 24 to keep the batterythe 24 to keep the battery so it's a thousandso it's a thousandso it's a thousand so basically if you compounded at sevenso basically if you compounded at sevenso basically if you compounded at seven percent a yearpercent a yearpercent a year for a hundred years you would have 1 000for a hundred years you would have 1 000for a hundred years you would have 1 000 timestimestimes what you started with twenty fourwhat you started with twenty fourwhat you started with twenty four thousand twenty four dollars will becomethousand twenty four dollars will becomethousand twenty four dollars will become twenty four thousand dollars by 1726.twenty four thousand dollars by 1726.twenty four thousand dollars by 1726. then we go another 100 years another
Questionerthen we go another 100 years another thousand it will become thousand it will become thousand it will become 24 million dollars that's 1826. and then 24 million dollars that's 1826. and then 24 million dollars that's 1826. and then we go another 100 years we go another 100 years we go another 100 years you are at 24 billion dollars you are at 24 billion dollars you are at 24 billion dollars in 1926. and then you go another 100 in 1926. and then you go another 100 in 1926. and then you go another 100 years to years to years to 20 and you're at 24 trillion dollars 20 and you're at 24 trillion dollars 20 and you're at 24 trillion dollars and of course we are not yet at 2026 we and of course we are not yet at 2026 we and of course we are not yet at 2026 we are 2022 are 2022 are 2022 so if you take away like one one double so it'll be maybe 16 17 million so so it'll be maybe 16 17 million so so it'll be maybe 16 17 million so mething like that a 1670 trillion something like that a 1670 trillion something like that a 1670 trillion sorry zero years sorry zero years sorry zero years so what's the island of Manhattan worth so what's the island of Manhattan worth so what's the island of Manhattan worth without just a land value because without just a land value because without just a land value because undeveloped land there undeveloped land there undeveloped land there what we know is that the entire wealth what we know is that the entire wealth what we know is that the entire wealth of every man woman and child on the of every man woman and child on the of every man woman and child on the planet planet planet is about 500 trillion is about 500 trillion is about 500 trillion the wealth in the United States is about the wealth in the United States is about the wealth in the United States is about 130 trillion and 130 trillion and 130 trillion and it is very unlikely it is very unlikely it is very unlikely that out of the 130 trillions of that out of the 130 trillions of that out of the 130 trillions of 15 or something of it is just 15 or something of it is just 15 or something of it is just undeveloped land Manhattan because undeveloped land Manhattan because undeveloped land Manhattan because there's so much other there's so much other there's so much other assets of the U.S assets of the U.S assets of the U.S and probably if you look at land values
Questionerand probably if you look at land values in Manhattan and extrapolate it out today you would get to maybe a few hundred billion in value at the most so the Indians actually got a good deal the problem they had is they didn't have a good trust officer so they didn't end up with 17 trillion so the thing about compounding and this Einstein says that compounding is the eighth wonder of the world and he says as we saw in this example if you go for a long enough period of time so the interesting thing about the way compounding works so let's say we go back a hundred years from 1626 to 50 26 go back 100 years and we had 2 400 sets in 1626 and you would have 2.4 cents in 1526 in 1516 you would be at one 1.2 cents and so one cent basically grows to the 16 17 trillion so there are three variables which are interplaying with each other there is the rate of compounding
Otherthere is the rate of compoundingthere is the rate of compounding then is the length of the runwaythen is the length of the runwaythen is the length of the runway and there is the starting amount theand there is the starting amount theand there is the starting amount the amount you start withamount you start withamount you start with and you can actually massage these threeand you can actually massage these threeand you can actually massage these three so one thing about the rule of 72 is itso one thing about the rule of 72 is itso one thing about the rule of 72 is it works and it's very flexible soworks and it's very flexible soworks and it's very flexible so seven percent a year over doubleseven percent a year over doubleseven percent a year over double in 10 yearsin 10 yearsin 10 years or ten percent a year will double inor ten percent a year will double inor ten percent a year will double in seven years so if you know the interestseven years so if you know the interestseven years so if you know the interest rateraterate you can figure out the period for theyou can figure out the period for theyou can figure out the period for the downloaddownloaddownload and if you know the period in which soand if you know the period in which soand if you know the period in which so let's say I want my money to double inlet's say I want my money to double inlet's say I want my money to double in five yearsfive yearsfive years I can just do 72 divide by 5 which isI can just do 72 divide by 5 which isI can just do 72 divide by 5 which is approximately 15. so I know that if Iapproximately 15. so I know that if Iapproximately 15. so I know that if I get a 15 area rate of returnget a 15 area rate of returnget a 15 area rate of return so actually the rule of 72 isso actually the rule of 72 isso actually the rule of 72 is interesting because it works both waysinteresting because it works both waysinteresting because it works both ways if you know the interest rate you knowif you know the interest rate you knowif you know the interest rate you know how long it takes and if you know thehow long it takes and if you know thehow long it takes and if you know the period you can figure out what theperiod you can figure out what theperiod you can figure out what the effective compounding rateeffective compounding rateeffective compounding rate should be and Warren Buffett I thinkshould be and Warren Buffett I think
Questionershould be and Warren Buffett I think when he bought his first talkwhen he bought his first talkwhen he bought his first talk when he was 11 years old and he says hewhen he was 11 years old and he says hewhen he was 11 years old and he says he was wasting his time until then and Iwas wasting his time until then and Iwas wasting his time until then and I think by then he was like probably 17 orthink by then he was like probably 17 orthink by then he was like probably 17 or 18.18.18. he had figured out how compounding workshe had figured out how compounding workshe had figured out how compounding works and such and here would handle all thatand such and here would handle all thatand such and here would handle all that he used to do a whole bunch of differenthe used to do a whole bunch of differenthe used to do a whole bunch of different Jobs when he was a teenager and he hadJobs when he was a teenager and he hadJobs when he was a teenager and he had about ten thousand dollarsabout ten thousand dollarsabout ten thousand dollars saved up when he was 18 which in today'ssaved up when he was 18 which in today'ssaved up when he was 18 which in today's money would be aboutmoney would be aboutmoney would be about 120 000 which is quite a bit for a 18120 000 which is quite a bit for a 18120 000 which is quite a bit for a 18 year old who have saved up throughyear old who have saved up throughyear old who have saved up through part-time jobs and so onpart-time jobs and so onpart-time jobs and so on and he knew that with thatand he knew that with thatand he knew that with that ten thousandten thousandten thousand he was well on his way towardshe was well on his way towardshe was well on his way towards compounding and actually in hiscompounding and actually in hiscompounding and actually in his compounding Journeycompounding Journeycompounding Journey started and around the time he was 18started and around the time he was 18started and around the time he was 18 years old and he started doing investyears old and he started doing investyears old and he started doing invest and suchand suchand such sososo my my younger daughter when she was 18my my younger daughter when she was 18my my younger daughter when she was 18 just before she started collegejust before she started collegejust before she started college she had done a summer internship and sheshe had done a summer internship and she
Ted Weschlershe had done a summer internship and she made about five thousand dollars and shemade about five thousand dollars and shemade about five thousand dollars and she didn't really have any expenses so shedidn't really have any expenses so shedidn't really have any expenses so she had saved the 5000. and so I told herhad saved the 5000. and so I told herhad saved the 5000. and so I told her look you can put this money in an IRAlook you can put this money in an IRAlook you can put this money in an IRA which is a retirement account in the U.Swhich is a retirement account in the U.Swhich is a retirement account in the U.S growth of that money gets tax deferredgrowth of that money gets tax deferredgrowth of that money gets tax deferred until you pull it out which might beuntil you pull it out which might beuntil you pull it out which might be when you're 65 or 70 or somethingwhen you're 65 or 70 or somethingwhen you're 65 or 70 or something so Iso Iso I asked her to put it into a IRAasked her to put it into a IRAasked her to put it into a IRA and I said look it's five thousandand I said look it's five thousandand I said look it's five thousand dollarsdollarsdollars you're 18you're 18you're 18 ififif you are able to compound ityou are able to compound ityou are able to compound it 15 a year15 a year15 a year plus 72 will be down to 35 years and soplus 72 will be down to 35 years and soplus 72 will be down to 35 years and so what would the money be when you're 68 Iwhat would the money be when you're 68 Iwhat would the money be when you're 68 I choose all the experience because easychoose all the experience because easychoose all the experience because easy on the math so it's 50 years 10 fiveon the math so it's 50 years 10 fiveon the math so it's 50 years 10 five year periodsyear periodsyear periods that's one thousandthat's one thousandthat's one thousand so 5000 becomes 5 millionso 5000 becomes 5 millionso 5000 becomes 5 million and now I had her attention and uh andand now I had her attention and uh andand now I had her attention and uh and then I said when you're 19 you want tothen I said when you're 19 you want tothen I said when you're 19 you want to another internshipanother internshipanother internship and you have some more skills maybe youand you have some more skills maybe youand you have some more skills maybe you make let's keep the math exactly themake let's keep the math exactly the
Questionermake let's keep the math exactly the same like 57.50 which is 15 more than the what you made at 18. and again at 68 that would end up with another 5 million and then at 20 if you do that with 65 or 67 00 it'll again end up being another 5 million and the 5 million keeps coming in at some point I told her you'll graduate and so I think the important thing with compounding is that if the length of the runway is really long then you don't need a high rate of compiling and you don't also need a high amount of starting amount of capital so it's just the interplay of those three and a few if you ask Buffett or Genie came to him you can have any wish you want he would he would basically say I only want one wish which is that when I die and they look at my corpse they should just say man he was old and he doesn't want to live because he likes yourself or any of
Questionerlive because he likes yourself or any of that he just wants to come out and sothat he just wants to come out and sothat he just wants to come out and so he's he just turned 92 a few weeks agohe's he just turned 92 a few weeks agohe's he just turned 92 a few weeks ago and so 74 years of compounding so farand so 74 years of compounding so farand so 74 years of compounding so far for them still in good health doingfor them still in good health doingfor them still in good health doing doing well going strong and sodoing well going strong and sodoing well going strong and so I think that one of the things theI think that one of the things theI think that one of the things the interesting thing about investing isinteresting thing about investing isinteresting thing about investing is thatthatthat thethethe individual investorindividual investorindividual investor individual retail investorindividual retail investorindividual retail investor unlike a lot of other fields or areas ofunlike a lot of other fields or areas ofunlike a lot of other fields or areas of the individual readers actually has anthe individual readers actually has anthe individual readers actually has an advantage over the professionaladvantage over the professionaladvantage over the professional which is usually not the case usuallywhich is usually not the case usuallywhich is usually not the case usually you would have people who are experts inyou would have people who are experts inyou would have people who are experts in their fields who would have thetheir fields who would have thetheir fields who would have the advantage over someadvantage over someadvantage over some weekend mechanic or somethingweekend mechanic or somethingweekend mechanic or something but the thing is that the two or threebut the thing is that the two or threebut the thing is that the two or three things that are going for the individualthings that are going for the individualthings that are going for the individual investor is in investinginvestor is in investinginvestor is in investing the lower the amount of capital you havethe lower the amount of capital you havethe lower the amount of capital you have to put to workto put to workto put to work The Wider the range of opportunityThe Wider the range of opportunityThe Wider the range of opportunity so as the size of the capital growsso as the size of the capital growsso as the size of the capital grows the range of things that you can invest
Questionerthe range of things that you can invest in keeps narrowing down and so if you look at someone like Warren Buffett he needs to put tens of millions to work at a time and they're the only so many things you can put to work with tens of billions whereas my daughter with five thousand dollars she would put a dollar off anywhere the other thing is that the other advice is the individual investor has is that you really need to know nothing about investing so you can just index so if one were to invest in the S P 500 index over 100 years it's delivered nine percent a year and probably in the next few decades just two periods back and forth but I would say that highly likely the next few decades also to below 89 a year which is about what the compounding rate for the Indian dwars so you get nine percent with knowing nothing and just buying a
Questionerwith knowing nothing and just buying a movie forever and most fund managers have a very difficult time beating the index they have a difficult time getting more than the nine percent a year and the reason they have a difficult time is is for two reasons one is so if I buy an index five basis points 10 base 0.25 or point one percent is the amount of the fees every year if I'm given to a professional manager usually it's one or two percent a year so first we have to overcome the one or two percent to just match the index right so the index is doing nine they have to do 10 or 11 which becomes very hard and so that's why advice money managers lack the index the second reason they like the index is that the index is too Brown to know that it owns Apple and it owns after that and it owns Microsoft and it owns Starbucks and it's too dumb to ever sell these companies
Questionerto ever sell these companies so it just sits there owning all these great businesses never sells them and when you look at the professional mutual fund managers in the U.S their typical annual turnover radius like 80 to 100 percent which means that their holding period for a stock is one year or less and Buffett says that the stock market is a mechanism to transfer wealth from the active to the inactive so that's so basically the professional managers do themselves no favors a disadvantage and then they are they will buy apple or alphabet or Microsoft but they will not overlift it and they'll typically buy it after everyone else support it and and so on so in many ways actually for the individual investor when I met Buffett for lunch there was a friend of his Rick Goran so there were three of them who were really close friends in the 60s Rick Goran Charlie hunger and Warren Buffett
QuestionerGoran Charlie hunger and Warren Buffett and Rick Gordon fell off the face of the Earth like mid 70s we never heard from her after that so one of one of the first questions I asked him is I said born are you in touch in the Greek what happened to Rick and I was just like a idle question I was just trying to figure out let me get some historical facts here about what went on with Drake
Warrenand he converted that question into a converted all our questions into great learning great learning opportunities so he said in 73 74 the U.S stock market went through a very severe correction actually it was more severe than the 1929 crash it was just in slow motion it took place over two years and Rick was leveraged we had Budget Loans all of that time and those he got margin calls and he owned a bunch of Berkshire Hathaway stocks so Buffett said
Questionerstocks so Buffett said I bought and Berkshire stock from himI bought and Berkshire stock from himI bought and Berkshire stock from him at that timeat that timeat that time at forty dollar a shareat forty dollar a shareat forty dollar a share that's what the sheds were creating atthat's what the sheds were creating atthat's what the sheds were creating at that time those shares now traded atthat time those shares now traded atthat time those shares now traded at over 400 000. a share so it was a 10over 400 000. a share so it was a 10over 400 000. a share so it was a 10 000x000x000x in the last 48 years or soin the last 48 years or soin the last 48 years or so and so basically Rick lost some of hisand so basically Rick lost some of hisand so basically Rick lost some of his wealth at that time but then bornwealth at that time but then bornwealth at that time but then born actuallyactuallyactually made a statement he said that if you aremade a statement he said that if you aremade a statement he said that if you are even a slightly above average investoreven a slightly above average investoreven a slightly above average investor who spends less than they arewho spends less than they arewho spends less than they are you cannot help but get rich over ayou cannot help but get rich over ayou cannot help but get rich over a lifetimelifetimelifetime so basically formula is really simpleso basically formula is really simpleso basically formula is really simple youyouyou have some kind of savings rate you havehave some kind of savings rate you havehave some kind of savings rate you have a very long Runway one of the sad partsa very long Runway one of the sad partsa very long Runway one of the sad parts about our conversation today is weabout our conversation today is weabout our conversation today is we really should have met 50 years agoreally should have met 50 years agoreally should have met 50 years ago there are too many creators on my kidsthere are too many creators on my kidsthere are too many creators on my kids know here I also got started late in myknow here I also got started late in myknow here I also got started late in my compounding Journey because I heardcompounding Journey because I heardcompounding Journey because I heard about Buffett for the first time when Iabout Buffett for the first time when Iabout Buffett for the first time when I was 30. and so I said 30 okay not too
Questionerwas 30. and so I said 30 okay not too bad better than 50 or 70 but 20 would have been better off and I really wish that some of these compounding things were part of the curriculum in icelands I think that's really where kids can get the most benefits we are taught probabilities and we are taught compounding and we're taught all these as Concepts in in classrooms but they don't connect the dots they don't connect the dots very well creation and savings and so on I think with that maybe you can open to questions or what would you say yes
Questioneryes tell us about some of the successful Investments you've made and how do you find the long runway in your Investments and the stability of the return year after year
Questioneryeah so one thing about the investing business and the very famous investor John tackleton he was a global investigated to invest all over the
Questionerinvestigated to invest all over the world passed away a few years ago and he said that even the very best investor would be wrong one out of three times so this is a forgiving business where you can have a high error rate and still do well so if you're a brain surgeon you can't screw up one hour three times or even one hour ten times or when I was 20 times that wouldn't work for you you're out of business right so but in in the investing business you could be wrong even half the time and still do well and I know I mentioned the index with the nine percent so the nine percent a year for the index is really coming out of about four percent of the stocks so basically one in 25 stocks over time delivers great results and the other 24 out of 25 gold is great and that's another reason why the active managers have a hard time because how do you get to the one out of the 25 you
Otheryou get to the one out of the 25 you might get to the other 24 are thinking that's one of the 25 and you might skip it and the index just log 25 so it has that in the mix and so I think the the approach to investing if you move from the index to stock picking which is I think a significant move I would I would actually suggest for most of you to stick to indexing but if you move to active stock picking then then I think what you're looking for is you're looking for anomalies and you're looking for things which make no sense like they hate to your head by two or two by four so in my case I think if I can find a couple of stocks in a year we're doing pretty well even if I sometimes I can find one stock in a year that's great so we are looking for things that are aberrations the other interesting thing about the stock market is that if you if
Warrenabout the stock market is that if you if I want to try to buy theI want to try to buy theI want to try to buy the partial or complete ownership of apartial or complete ownership of apartial or complete ownership of a businessbusinessbusiness in a private negotiated transactionin a private negotiated transactionin a private negotiated transaction basically that type of transactionbasically that type of transactionbasically that type of transaction typically will be an intelligent buyertypically will be an intelligent buyertypically will be an intelligent buyer facing an intelligent serverfacing an intelligent serverfacing an intelligent server and typically it will end up happeningand typically it will end up happeningand typically it will end up happening at someat someat some rational or maybe even exuberant pricerational or maybe even exuberant pricerational or maybe even exuberant price unless there is some kind of distress atunless there is some kind of distress atunless there is some kind of distress at that time that may give you some kind ofthat time that may give you some kind ofthat time that may give you some kind of a better deal buta better deal buta better deal but in the stock market we don't have to doin the stock market we don't have to doin the stock market we don't have to do negotiated transactions and and sonegotiated transactions and and sonegotiated transactions and and so if I look at all the stocks in the Newif I look at all the stocks in the Newif I look at all the stocks in the New York Stock Exchange let's say they wereYork Stock Exchange let's say they wereYork Stock Exchange let's say they were in a newspaper all the stock codesin a newspaper all the stock codesin a newspaper all the stock codes 32-week range all of that and I threw a32-week range all of that and I threw a32-week range all of that and I threw a dogdogdog at that page of all the stock quotesat that page of all the stock quotesat that page of all the stock quotes and I look at any random stock that theand I look at any random stock that theand I look at any random stock that the dot hitsdot hitsdot hits the 52-week range of that stock pricethe 52-week range of that stock pricethe 52-week range of that stock price is going to be something like 60 dollarsis going to be something like 60 dollarsis going to be something like 60 dollars to a hundred dollarsto a hundred dollars
Otherto a hundred dollars or like 55 dollars to a hundred and tenor like 55 dollars to a hundred and tenor like 55 dollars to a hundred and ten dollars usually they'll be a pretty widedollars usually they'll be a pretty widedollars usually they'll be a pretty wide range and this would be happening inrange and this would be happening inrange and this would be happening in normal years where there's nothingnormal years where there's nothingnormal years where there's nothing unusual going on just the normalunusual going on just the normalunusual going on just the normal butbutbut if I were to look at a private businessif I were to look at a private businessif I were to look at a private business and I go to the seller on the privateand I go to the seller on the privateand I go to the seller on the private business and I say Hey listen I'mbusiness and I say Hey listen I'mbusiness and I say Hey listen I'm interested in buying your business and Iinterested in buying your business and Iinterested in buying your business and I said okay it's worth 10 billionsaid okay it's worth 10 billionsaid okay it's worth 10 billion and if I go back the next day and I askand if I go back the next day and I askand if I go back the next day and I ask him let's say case 10 million or againhim let's say case 10 million or againhim let's say case 10 million or again then I go back third day he'll tell methen I go back third day he'll tell methen I go back third day he'll tell me listen idiot you'll still tell melisten idiot you'll still tell melisten idiot you'll still tell me everything and if I go back every singleeverything and if I go back every singleeverything and if I go back every single day and he gave me a priceday and he gave me a priceday and he gave me a price the band of that price would probablythe band of that price would probablythe band of that price would probably not change more than nine or nine and anot change more than nine or nine and anot change more than nine or nine and a half million to 11 million it'll be ahalf million to 11 million it'll be ahalf million to 11 million it'll be a pretty tight band but the same businesspretty tight band but the same businesspretty tight band but the same business is a different traded on the stockis a different traded on the stockis a different traded on the stock marketmarketmarket would not have a range of 9 to 11. itwould not have a range of 9 to 11. it
Otherwould not have a range of 9 to 11. it would have a range of 5 to 15.would have a range of 5 to 15.would have a range of 5 to 15. and so auction driven markets create aand so auction driven markets create aand so auction driven markets create a much wider disparitymuch wider disparitymuch wider disparity in pricing so because of the nature ofin pricing so because of the nature ofin pricing so because of the nature of auction during marketsauction during marketsauction during markets you getyou getyou get stock prices which either undervalue astock prices which either undervalue astock prices which either undervalue a business or over value businessbusiness or over value businessbusiness or over value business hardly ever to be actually correctlyhardly ever to be actually correctlyhardly ever to be actually correctly value the businessvalue the businessvalue the business and if I'mand if I'mand if I'm looking to buy a business there arelooking to buy a business there arelooking to buy a business there are always like 50 000 stocks in the worldalways like 50 000 stocks in the worldalways like 50 000 stocks in the world and they'll obviously businesses that'lland they'll obviously businesses that'lland they'll obviously businesses that'll bebebe severely undervalued and they'll alwaysseverely undervalued and they'll alwaysseverely undervalued and they'll always be businesses that arebe businesses that arebe businesses that are very exuberantly overvalued andvery exuberantly overvalued andvery exuberantly overvalued and everything in the middle so basicallyeverything in the middle so basicallyeverything in the middle so basically knowing that what I'm the stock marketknowing that what I'm the stock marketknowing that what I'm the stock market is interesting if you said to yourselfis interesting if you said to yourselfis interesting if you said to yourself I only want to invest in businessesI only want to invest in businessesI only want to invest in businesses which are available for one-timewhich are available for one-timewhich are available for one-time earnings I'm going to get my money backearnings I'm going to get my money backearnings I'm going to get my money back one year in earningsone year in earningsone year in earnings because it's 50 000 stocks there arebecause it's 50 000 stocks there arebecause it's 50 000 stocks there are plenty of stocks trading in the world
Otherplenty of stocks trading in the world where the PE is one if you said I want my money back two years you could try to like give the PO too so pretty much the stock market can give you whatever your screening criteria is which is wonderful about a place and I'm going after Kenya to Kazakhstan and I've never been to Kazakhstan before and actually quite frankly I'm more excited about the Kazakhstan trip than the amazing Safari because work is more fun than fun and we have exciting things to to discover there's a I have a couple of investments in turkey and turkey is a an interesting place in terms of the stock market I've been going there for about four years so if you look at the entire Turkish market eighty percent of it is either owned by insiders or foreigners and that 80 of the market hardly trails in just a static the other 20 is owned by retail
Questionerstatic the other 20 is owned by retail Turkish investors they're really not investors they're speculators that 20 turns over every 90 . so it's hyperactive in terms of how much volume there is I was actually surprised the volume so most of the retail published investors their Motors operating they actually in Turkish they don't even call it investing in the stock market they call it playing the market and so their model is I want to invest at 10 am and I want to sell at 3 P.M and I want to make 10 and that's my model back up my shop at 3 pm and then next day again start at 10 am and good luck with that and so like Buffett said transfer over to the active to being active so I'm talking about extreme case of that so when people are doing that they are looking at the business and they aren't looking at the valuable business so when I looked at businesses
Questionerbusiness so when I looked at businesses in Turkey it's a bit of a crazy place inflation rate is 85 percent currency is going through crazy devaluations and most foreign investors everyone has left the scene and that's a good time to enter and so three years back I have a good friend in Turkey who's a profit Monger Graham disciple so I just told him listen can we just go visit all the businesses in your portfolio he said oh yeah sure that'd be fine so I was going through 2018 I went to visit a Bato Cafe then 2019 you know he took me to this company which is they were a bunch of businesses but they are the main businesses they are a warehouse owner and operator they own 12 million square feet of warehouses and you would sell those warehouses in six months or three months they're all prying 99 at least inflation index releases Amazon Ikea Carrefour these are
Otherreleases Amazon Ikea Carrefour these are the tenants so that those warehouses were worth about a billion dollars there was about 200 million of debt and the market cap was 20 million so we are paying 20 million for a business that you can liquidate for 800 million this is better than a po1 so I said where do I sign and I met the management the father who run it they seemed perfectly normal honest people to me and then I thought I wouldn't get any stop because what are we going to do but we ended up for seven million dollars with one third of the company and and then I said okay so we want to follow the company and then it's not just so the liquidation value was the 800 million at the time but they're really good capital allocators and now the liquidation liquidation value probably is over a million billion two and Turkish real estate actually is
Questionertwo and Turkish real estate actually is depressed so it's actually probably worth double that probably and on top of that they are smart about how they invest so my game plan there is just spend my time talking to ypos and do nothing just sit there and and I'm going to Kazakhstan because there's a airport operator in Turkey they operate 15 airports in eight countries and three percent of airports in the world are privately operated 97 are operated by the governments and municipalities and so on and that three percent will grow because it's a no-brain interaction to give it a bad operator so they during the pandemic they did a deal in Kazakhstan when there were no flights in 2020 2021 where they bought the Almaty airport which is the number one airport in Kazakhstan or 400 million and actually mostly the airport you get them for 30 40 years this is
Otheryou get them for 30 40 years this is you get them for 30 40 years this is forever it's an outline purchase and forever it's an outline purchase and forever it's an outline purchase and they're putting in about two original they're putting in about two original they're putting in about two original capex we have 600 million and I think in capex we have 600 million and I think in capex we have 600 million and I think in a few years we'll be making automobile a few years we'll be making automobile a few years we'll be making automobile in a year on it and so that asset is a in a year on it and so that asset is a in a year on it and so that asset is a tremendous asset but there's 14 other tremendous asset but there's 14 other tremendous asset but there's 14 other assets and it treats internally so assets and it treats internally so assets and it treats internally so that's awesome and uh and a bunch of that's awesome and uh and a bunch of that's awesome and uh and a bunch of these airports are not in Turkey these airports are not in Turkey these airports are not in Turkey and and the interesting thing about tab and and the interesting thing about tab and and the interesting thing about tab the airport company the airport company the airport company is even the airports in Turkey or their is even the airports in Turkey or their is even the airports in Turkey or their revenue is in Euros all their revenue revenue is in Euros all their revenue revenue is in Euros all their revenue and all the airports and Euros so the and all the airports and Euros so the and all the airports and Euros so the leader of devaluation is irrelevant and leader of devaluation is irrelevant and leader of devaluation is irrelevant and even with the warehouse operator they even with the warehouse operator they even with the warehouse operator they have cement and steel and land which is have cement and steel and land which is have cement and steel and land which is automatically inflation indexed so again automatically inflation indexed so again automatically inflation indexed so again the inflation rate doesn't matter there the inflation rate doesn't matter there the inflation rate doesn't matter there because it just adjusts so that's why in because it just adjusts so that's why in because it just adjusts so that's why in Turkey I just looked at Investments Turkey I just looked at Investments Turkey I just looked at Investments where inflation becomes a Tailwind not a
Questionerwhere inflation becomes a Tailwind not a headwind and then I just have the people I'm playing I'm buying the stock clock like Buffett says it's like playing bridge with people who've been told it does no good to look at the comments and that's the way it is so that's what I do basically I look for anomalies and I just have to be patient the number one skill is patience and let the game come to you more questions in the room and the last three or four three years or so two significant changes have happened in the markets where the because of the pharmaceutical companies that covered medications pharmaceutical companies share prices have called defense companies contractors projects dramatically after the Russian war I mean between trade companies that assuming foreign market forces a lot of other horses other than the market yeah so I think
Questionerother than the market yeah so I think anything in healthcare of also because or anything I just don't even look at it I don't think I bring in the body usually I think that if you look at things in this type of a lens my general senses you'll be late to the party so I think that there's a lot of smart people in the markets and the question you would ask is if you look at pharmaceutical companies today are they still a great deal they may be but they're not obvious to me so I would say that probably it's better to look where the whether it's not in the headlines you there's a friend of Charlie munger's John area he passed away I think a couple years back multi-millionaire and John only invested in his entire life within two miles of the Stanford University campus so he only invested in real estate and he only invested in real estate just around the
Questionerinvested in real estate just around the standard Stanford campus and if you walk with him in that area he could just look at every building and tell you what the rent is what the cost the building is or the history of the building is the pricing he knew that area code so what is John area the circle of confidence it is not real estate it is not California real estate it is not even Northern California real estate or Bay Area real estate it is interested in a very small geography so the thing about investing is that we don't need to know so if I were talking to John I say hey John found so because they're doing great it would just go straight over he won't even pay attention and if I told him this in Southern California real estate is doing great he would not care about that either but if I talk to about some particular building on El Camino or
Othersome particular building on El Camino or near the Stanford campus or somethingnear the Stanford campus or somethingnear the Stanford campus or something he'll be all yours he'd be interestedhe'll be all yours he'd be interestedhe'll be all yours he'd be interested and basically what he did is that whenand basically what he did is that whenand basically what he did is that when things got very euphoric in these areasthings got very euphoric in these areasthings got very euphoric in these areas he unloaded the entire portfolio and hehe unloaded the entire portfolio and hehe unloaded the entire portfolio and he went completely to cash and he couldwent completely to cash and he couldwent completely to cash and he could clearly tell when the ratio of rents toclearly tell when the ratio of rents toclearly tell when the ratio of rents to to prices people are willing to pay himto prices people are willing to pay himto prices people are willing to pay him three percent cap rates or whateverthree percent cap rates or whateverthree percent cap rates or whatever he was out and then when the downturnshe was out and then when the downturnshe was out and then when the downturns came he just bought dollar so he justcame he just bought dollar so he justcame he just bought dollar so he just did this a few times and most of thisdid this a few times and most of thisdid this a few times and most of this held on to it so basically anythingheld on to it so basically anythingheld on to it so basically anything investing the important thing is theinvesting the important thing is theinvesting the important thing is the first most important question to ask isfirst most important question to ask isfirst most important question to ask is it in my circle account is something I'mit in my circle account is something I'mit in my circle account is something I'm looking at I understand really welllooking at I understand really welllooking at I understand really well and you don't need I don't have a clueand you don't need I don't have a clueand you don't need I don't have a clue about pharmaceuticals I don't have aabout pharmaceuticals I don't have aabout pharmaceuticals I don't have a clue what defense stocks I've neverclue what defense stocks I've neverclue what defense stocks I've never spent much time looking at them andspent much time looking at them andspent much time looking at them and again I don't like that again gets away
Questioneragain I don't like that again gets away from Market forces so I just stay away from Market forces so I just stay away from Market forces so I just stay away from something driven by the government from something driven by the government from something driven by the government and so on and so I think the thing is and so on and so I think the thing is and so on and so I think the thing is that because these auction driven that because these auction driven that because these auction driven markets because people are vacillating markets because people are vacillating markets because people are vacillating between fear and greed all the time between fear and greed all the time between fear and greed all the time there's all kinds of things going on there's all kinds of things going on there's all kinds of things going on with individual companies all the time with individual companies all the time with individual companies all the time and so if there's something that you can and so if there's something that you can and so if there's something that you can understand about understand about understand about and the pricing is not like 20 off and the pricing is not like 20 off and the pricing is not like 20 off outside of the pricing is 80 or 90 off outside of the pricing is 80 or 90 off outside of the pricing is 80 or 90 off that should get you inside I agree which that should get you inside I agree which that should get you inside I agree which I was very interesting so I got a couple I was very interesting so I got a couple I was very interesting so I got a couple of questions about this if you look at a of questions about this if you look at a of questions about this if you look at a market like this how do you react I market like this how do you react I market like this how do you react I don't really care about the market I don't really care about the market I don't really care about the market I don't mean they can anymore I just think don't mean they can anymore I just think don't mean they can anymore I just think I don't care about any Market I don't care about any Market I don't care about any Market I care about individual businesses I care about individual businesses I care about individual businesses and individual stocks so I don't really and individual stocks so I don't really and individual stocks so I don't really pay attention pay attention pay attention to I don't care about the interest rates
Otherto I don't care about the interest ratesto I don't care about the interest rates I don't care about fed policy I don'tI don't care about fed policy I don'tI don't care about fed policy I don't care about the inflation ratecare about the inflation ratecare about the inflation rate all of that to me is in the noiseall of that to me is in the noiseall of that to me is in the noise if I look at that Turkish real estateif I look at that Turkish real estateif I look at that Turkish real estate companycompanycompany what does it matter what all thesewhat does it matter what all thesewhat does it matter what all these factors so when we invested three yearsfactors so when we invested three yearsfactors so when we invested three years agoagoago the leader was five liter for the dollarthe leader was five liter for the dollarthe leader was five liter for the dollar now I think it's almost 19 we run to thenow I think it's almost 19 we run to thenow I think it's almost 19 we run to the dollar so wedollar so wedollar so we almost suffered a four to onealmost suffered a four to onealmost suffered a four to one devaluationdevaluationdevaluation in dollar terms the market cap now isin dollar terms the market cap now isin dollar terms the market cap now is 150150150 million so it went up 7x in the lastmillion so it went up 7x in the lastmillion so it went up 7x in the last three years it's still under valuethree years it's still under valuethree years it's still under value invest it's worth over a billion but itinvest it's worth over a billion but itinvest it's worth over a billion but it went up 7x and the leader collapsed andwent up 7x and the leader collapsed andwent up 7x and the leader collapsed and toki's got crazy economic policies andtoki's got crazy economic policies andtoki's got crazy economic policies and have you got the war going on and allhave you got the war going on and allhave you got the war going on and all these different things going on so Ithese different things going on so Ithese different things going on so I would say that the for most businesseswould say that the for most businesseswould say that the for most businesses the micro would drop the macro so thethe micro would drop the macro so thethe micro would drop the macro so the specific things around the business willspecific things around the business willspecific things around the business will be the ones that will dominate
Questionerbe the ones that will dominate the long-term results and and if he was smart enough to understand Amazon 10 years ago or something it didn't matter what else happened if you want to stop and you sell it then that would be just fine so I think the important thing in the investing is to keep it really simple so usually the macro factors are really hard to figure out so what is the trajectory of the war and Ukraine who knows when does it end who knows how long will the FED key be ready interesting tools so I don't even try to answer these questions and if you look at if you look at most of you in the room you know you're running businesses when you're running the business you're not running it based on some macro factors there are three or four variables that control most of the outcome of your business and we are focused on those three four
Questionerand we are focused on those three four variables and as an investor I need to hone in on those same ways and then I can see okay these are the three or four variables that affect this business can I have a viewpoint on these variables which is high probability and if I feel that I can do that then there will be a basis bigger than us and the other thing is one of the things about the world in general is whatever period of time you look at looks like the first step okay this time looks terrible but the financial crisis looked terrible too and March 2020 with covert looked terrible too and the Great Depression of 1012 and the Vietnam War there was a whole bunch of things that took terrible so I think the world always looks if you look at it in a certain way looks terrible and what is also true is that these two shall pass so whatever is dominating the headlines
Warrenso whatever is dominating the headlines and taking up a lot of space someday the Ukraine conflict will be solved we don't know how and when but did you get solved at some point and someday U.S inflation will get another control and someday you've got a new leader in Kenya got a new president and he might make some great changes and that might be great as well so I think that the world has a way of getting itself into trouble and also the way of getting out of trouble and so these two shall pass is a good way to think about it
Questionerpublicly I have it by about that side I've read it five years ago it's still as far as music but I want to ask you about Texas I love your story which I tell often about the Chuck review the mahabara to get out is more difficult it's great to get in but then you don't know the story about how to get out I still don't know you know so what is
QuestionerI still don't know you know so what is the right time how do you time it right the right time how do you time it right the right time how do you time it right how do you know that you've had enough how do you know that you've had enough how do you know that you've had enough and how do you find it out particularly and how do you find it out particularly and how do you find it out particularly lessons lessons lessons do invest in the stock market I invested do invest in the stock market I invested do invest in the stock market I invested nature it's a little more illiquid how nature it's a little more illiquid how nature it's a little more illiquid how do you get it do you get it do you get it getting out is much harder than getting getting out is much harder than getting getting out is much harder than getting in in in
Otheryeah so one of the chapters in my book yeah so one of the chapters in my book yeah so one of the chapters in my book which pradeep did you send it to them or which pradeep did you send it to them or which pradeep did you send it to them or are they going to get it they're going are they going to get it they're going are they going to get it they're going to get it okay yeah so it's from the to get it okay yeah so it's from the to get it okay yeah so it's from the Omaha you know the story of abhimanyu Omaha you know the story of abhimanyu Omaha you know the story of abhimanyu most of you are probably familiar with most of you are probably familiar with most of you are probably familiar with the story where he's a fetus in the womb the story where he's a fetus in the womb the story where he's a fetus in the womb of his mom and Arjuna was a great of his mom and Arjuna was a great of his mom and Arjuna was a great warrior explaining warrior explaining warrior explaining how a warrior can enter a child review how a warrior can enter a child review how a warrior can enter a child review for formation in a Battlefield which is for formation in a Battlefield which is for formation in a Battlefield which is complicated and also how he can exit so complicated and also how he can exit so complicated and also how he can exit so when he explains the second part which when he explains the second part which when he explains the second part which is how you exit the Chapel View is how you exit the Chapel View is how you exit the Chapel View the pregnant mother falls asleep
Otherthe pregnant mother falls asleep and so the abhimanyu was listening in the womb only got half the store so he only learned how to get it even though the famous investor Phil Fisher people are what a great approach to buying great businesses and mayor of Court he said if the job is done right one will never need to sell and he also says that from that lens every cell decision is a mistake and of course in your case you've got length of the funds have a finite life and so on so that complicates things a bit I don't have a I stay away from early stage investing completely I think it's really difficult and I also stay away from private Equity investing again you call it liquidity and so on so even in the public markets I lived by some sorts of public markets sometimes getting out can take time sometimes when we are trying to get out of position it
Questionerwe are trying to get out of position it might take us a year because the liquidity is not there or whatever else but yeah I think that buying a stock is easy and there are a couple of things that happen when buying a stock you really understand the business only after you own the stock you really don't understand the business um while you study it it's after you own it and you really understand it really well when it drops 30 or 40 percent that's when you get a really good understanding of the business so the selling part is really hard I think the number one skill that investors can bring to the party is to be very patient patience is the number one skill that can be helpful because like I said you look at company 60 to 100 in a year and and so if maybe going through some temporary pickup or whatever else and study and stick to Circle confidence
CharlieCircle confidence and then hopefully the Salvation can be a little easier but I think in your case I don't know what I can advise you because you have earlier stage businesses of course in your case you can also tolerate a very high mortality rate so you could have most Venture funds will make most of their returns and 10 percent or five percent one in 10 beds or 120 beds works and that takes care of the portfolio the game there is not so much about the liquidity it's about whether you have a winner and a big winner then the others may not matter so much but I'm probably the wrong guy to ask the question you asked
Otherforeign I suggest we start dinner and as we are closer of which we can presume a question that answer me drive hopefully you can help my jig as well and please do ask the questions because that's the only way that we will get the best out
Warrenonly way that we will get the best out of Polish and to learnof Polish and to learnof Polish and to learn so that's a great questionso that's a great questionso that's a great question and in 1956 please have a seatand in 1956 please have a seatand in 1956 please have a seat please keep eating so in 1956 there wasplease keep eating so in 1956 there wasplease keep eating so in 1956 there was a senate here in the U.S Senate wherea senate here in the U.S Senate wherea senate here in the U.S Senate where Senator Fulbright who was famous for theSenator Fulbright who was famous for theSenator Fulbright who was famous for the firstfirstfirst was questioning Ben Ram was he's born ofwas questioning Ben Ram was he's born ofwas questioning Ben Ram was he's born of its futureits futureits future so he said that Mr Graham will stop thatso he said that Mr Graham will stop thatso he said that Mr Graham will stop that trains at ten dollars and you think it'strains at ten dollars and you think it'strains at ten dollars and you think it's worth 20. and what are the forcesworth 20. and what are the forcesworth 20. and what are the forces that would make this talk actually go tothat would make this talk actually go tothat would make this talk actually go to 20. so what Ben Graham said was he said20. so what Ben Graham said was he said20. so what Ben Graham said was he said Senator this is one of those MysteriesSenator this is one of those MysteriesSenator this is one of those Mysteries to which I have no answer but what I canto which I have no answer but what I canto which I have no answer but what I can tell you is that if the intrinsic valuetell you is that if the intrinsic valuetell you is that if the intrinsic value is 20 it will get there eventually andis 20 it will get there eventually andis 20 it will get there eventually and so basically value is its own catalystso basically value is its own catalystso basically value is its own catalyst so whenever I Advanced of operativeso whenever I Advanced of operativeso whenever I Advanced of operative grass or people who are in thisgrass or people who are in thisgrass or people who are in this framework or investing we never focus onframework or investing we never focus onframework or investing we never focus on catalysts so when this company wascatalysts so when this company wascatalysts so when this company was trading at 20 million and you know it's
Questionertrading at 20 million and you know it's worth 800 million or whatever I had no idea whether it takes six months one year two years five years ten years to get there I had no idea when it would get there but I do think it will get there so far what has happened is that we weren't convertible into 150 million in three years with a lot of turmoil macro turmoil going on it's still got a but on the other hand they've raised the value of the business in the meanwhile so it doesn't matter we can be patient we are what I look at is and I told my investors this I told them listen when we give you a valuation it's based on the stock market value right but between us girls we understand what the real man and so just understand that so at some point it will it will manifest himself because we believe in our Guru but why thank you very much so you've talked to us about
Questionerus about and turkey at our table here we were contrasting investment opportunities in Africa and in India we were also talking about the UK and its troubles what regions of the world excite emails days
Otheryeah I don't I actually don't think about it that way turkey was a little bit of an aberration because I was less curious about four years ago because I saw that there was a lot of turmoil from a lot of physical and monetary perspective and I also would see a lot of people exiting so I just wanted to explore what was possible in turkey and so I had this friend and so I just told him let's just go meet your businesses in your portfolio and so on once I'm outside the U.S historically when I first started investing and I feel maybe 70 years ago almost all my investments were in the U.S when I invest in the U.S I rarely have ever meet management so the
Questionerrarely have ever meet management so the odds that I would lose money in the US because of outright fraud is as close to you as you can get I will lose money because I'm stupid but not because of outright fraud once I leave the US and I'm going to Africa or turkey or India or whatever the odds of outright fraud to become elevated they're going down in all these places one of the reasons one of the things I need to assess is the integrity and ethics and competence of management here how they would treat outside shareholders that sort of thing so there's a layer there's another layer of kind of due diligence that comes in for companies outside the U.S but it also takes a lot of effort right because a lot of travel and also when I'm dealing with different countries there may be many things about the country that I do not understand so
Questionerthe country that I do not understand so I would rather at this point I would rather at this point I would rather at this point spend more time spend more time spend more time in a place like those becoming more more familiar familiar familiar then then then start looking at another country on the start looking at another country on the start looking at another country on the other side I only make two Investments a other side I only make two Investments a other side I only make two Investments a year so you know 50 000 stocks year so you know 50 000 stocks year so you know 50 000 stocks and we need to write and we need to write and we need to write and then there's John eliega who's and then there's John eliega who's and then there's John eliega who's within two miles of the Stafford campus within two miles of the Stafford campus within two miles of the Stafford campus and he's doing just fine he's not even and he's doing just fine he's not even and he's doing just fine he's not even going to the next County so I think that going to the next County so I think that going to the next County so I think that one doesn't need to cast a really white one doesn't need to cast a really white one doesn't need to cast a really white death I think it's better to be an inch death I think it's better to be an inch death I think it's better to be an inch wide and a mildly wide and a mildly wide and a mildly than a mile wire so it'll expand by all than a mile wire so it'll expand by all than a mile wire so it'll expand by all sponsors but I'm not hoping to sponsors but I'm not hoping to sponsors but I'm not hoping to specifically expect specifically expect specifically expect so like turkey is interesting there is a so like turkey is interesting there is a so like turkey is interesting there is a coax bottler in Turkey and I like being coax bottler in Turkey and I like being coax bottler in Turkey and I like being businesses like the cold water so the businesses like the cold water so the businesses like the cold water so the Co-operative Co-operative Co-operative is the only cold water is the only cold water is the only cold water and 20 of the company is owned by the and 20 of the company is owned by the and 20 of the company is owned by the Coca-Cola and the Coca-Cola Company sits Coca-Cola and the Coca-Cola Company sits Coca-Cola and the Coca-Cola Company sits on their board
Questioneron their board and I met these people and I met these people and I met these people which and they have a really high quality quality quality and and and they also happen to own 49 of the they also happen to own 49 of the they also happen to own 49 of the co-bottler in Pakistan which is and at co-bottler in Pakistan which is and at co-bottler in Pakistan which is and at some point I think that coke owns the some point I think that coke owns the some point I think that coke owns the ability on the set ability on the set ability on the set at some point more could probably sell at some point more could probably sell at some point more could probably sell that 51 down to these guys and besides that 51 down to these guys and besides that 51 down to these guys and besides Pakistan and turkey they have 11 other Pakistan and turkey they have 11 other Pakistan and turkey they have 11 other countries in the region like about countries in the region like about countries in the region like about Jordan Uzbekistan and Kazakhstan Jordan Uzbekistan and Kazakhstan Jordan Uzbekistan and Kazakhstan and uh and uh and uh cork is a really good business cork is a really good business cork is a really good business the coke bottling business is not as the coke bottling business is not as the coke bottling business is not as good as though but it's still it still good as though but it's still it still good as though but it's still it still is a good business and so when you have is a good business and so when you have is a good business and so when you have a business like that based in turkeys a business like that based in turkeys a business like that based in turkeys it so all these four bottles in the it so all these four bottles in the it so all these four bottles in the world that are publicly listed world that are publicly listed world that are publicly listed and they create like a certain multiple and they create like a certain multiple and they create like a certain multiple and then there's the co-founder drug and then there's the co-founder drug and then there's the co-founder drug which to either discount only because which to either discount only because which to either discount only because it's very centered and so that kind of it's very centered and so that kind of it's very centered and so that kind of makes it interesting I I went to I met
Warrenmakes it interesting I I went to I met them once with Coke bottles and I really like that and I told them that so if you go on YouTube and you do a search on me there's a talk I gave it University of California and Irvine which was about a two and a half hour clock on the business model of code so I told these guys that Hey listen when I met them the first time that you might want to look at that video I did and that video has actually got like quarter million views so they looked at the video and then they called they said we need to discuss our business so I met them for lunch then I said uh so they both said regular Coke I said okay I'm also going to have regular call and then it was a really funny meeting because they're asking me all these questions about what they should do should we make this investment should we set up this part thank God I said you are the guys running the
Questionersaid you are the guys running the business business business I'm just the outsider but the thing is I I'm just the outsider but the thing is I I'm just the outsider but the thing is I think that so I really enjoyed actually think that so I really enjoyed actually think that so I really enjoyed actually we didn't invest in them so far because we didn't invest in them so far because we didn't invest in them so far because they were it wasn't as cheap as a they were it wasn't as cheap as a they were it wasn't as cheap as a warehouse operator in Turkey but so I warehouse operator in Turkey but so I warehouse operator in Turkey but so I think that a place like turkey serves up think that a place like turkey serves up think that a place like turkey serves up companies like this which is really companies like this which is really companies like this which is really but but but it's good it's good it's good I want to say a little bit about this so I was on autopilot pradeep set up the so I was on autopilot pradeep set up the so I was on autopilot pradeep set up the plan plan plan and we just said okay he's the boss he and we just said okay he's the boss he and we just said okay he's the boss he knows what's going on here knows what's going on here knows what's going on here and so it was really wonderful because and so it was really wonderful because and so it was really wonderful because we spent three nights I think yeah we spent three nights I think yeah we spent three nights I think yeah it's gencha camp that was again check it's gencha camp that was again check it's gencha camp that was again check out it was really nice and I do in the out it was really nice and I do in the out it was really nice and I do in the model a lot of game and good drivers and model a lot of game and good drivers and model a lot of game and good drivers and good drives it was really nice and I good drives it was really nice and I good drives it was really nice and I think the staff was really good think the staff was really good think the staff was really good and then they spent a couple name said and then they spent a couple name said and then they spent a couple name said Mr Branson's Camp which I think was a Mr Branson's Camp which I think was a Mr Branson's Camp which I think was a lot more expensive lot more expensive lot more expensive but I would go with again to you would but I would go with again to you would
Questionerbut I would go with again to you would you respect to him there's a chapter onyou respect to him there's a chapter onyou respect to him there's a chapter on Ransom in my bookRansom in my bookRansom in my book our friend will be interested in theour friend will be interested in theour friend will be interested in the Chuck review chapter the chapter ofChuck review chapter the chapter ofChuck review chapter the chapter of Brands and which you guys might enjoyBrands and which you guys might enjoyBrands and which you guys might enjoy what a very nice facility but I justwhat a very nice facility but I justwhat a very nice facility but I just felt it was like a more cooperativefelt it was like a more cooperativefelt it was like a more cooperative Thing versus the other one tried likeThing versus the other one tried likeThing versus the other one tried like more like family and then the one that Imore like family and then the one that Imore like family and then the one that I really liked we really liked a lot a lotreally liked we really liked a lot a lotreally liked we really liked a lot a lot was the Stars yeahwe actually didn't even go on any drivewe actually didn't even go on any drivewe actually didn't even go on any drive we just wanted to be in the room so thatwe just wanted to be in the room so thatwe just wanted to be in the room so that was greatwas greatwas great yeah so I really enjoyed I think I thinkyeah so I really enjoyed I think I thinkyeah so I really enjoyed I think I think it's very therapeutic and the staff andit's very therapeutic and the staff andit's very therapeutic and the staff and the peoplethe peoplethe people these I think these lodges becausethese I think these lodges becausethese I think these lodges because they're so smallthey're so smallthey're so small it's difficult to imagine that theyit's difficult to imagine that theyit's difficult to imagine that they are the business model is that great butare the business model is that great butare the business model is that great but there's so much staff and things and allthere's so much staff and things and allthere's so much staff and things and all the stuff as we brought in and all thatthe stuff as we brought in and all thatthe stuff as we brought in and all that so it's really kind of like a labor ofso it's really kind of like a labor ofso it's really kind of like a labor of lovelove
Questionerlove and so I'm grateful he did thatand so I'm grateful he did thatand so I'm grateful he did that and the star the star of it I thoughtand the star the star of it I thoughtand the star the star of it I thought whoever designed that place was a geniuswhoever designed that place was a geniuswhoever designed that place was a genius really well donethe best meal we had was the last nightthe best meal we had was the last nightthe best meal we had was the last night with the star wet placement we made awith the star wet placement we made awith the star wet placement we made a wood Curry chapati jeera rice very wellwood Curry chapati jeera rice very wellwood Curry chapati jeera rice very well donedonedone in the bush yeahin the bush yeahin the bush yeah [Music][Music][Music] I'm straightI'm straightI'm straight okay thank you for thatokay thank you for thatokay thank you for that so what are your thoughts on the new ageso what are your thoughts on the new ageso what are your thoughts on the new age investing companies creating the newsinvesting companies creating the newsinvesting companies creating the news losses massive multiple wallshow do you feel about those thingshow do you feel about those thingshow do you feel about those things
Otherso there's a I think a year more thanso there's a I think a year more thanso there's a I think a year more than one year or two years after the marketone year or two years after the marketone year or two years after the market launched so I'll answer your questionlaunched so I'll answer your questionlaunched so I'll answer your question and ask our story so everything has toand ask our story so everything has toand ask our story so everything has to be restored right so I'll tell you abe restored right so I'll tell you abe restored right so I'll tell you a story when we set up this lunch we'llstory when we set up this lunch we'llstory when we set up this lunch we'll Buffet we had to interact with hisBuffet we had to interact with hisBuffet we had to interact with his assistant and I got to know Debbieassistant and I got to know Debbieassistant and I got to know Debbie really well and so my friend guy and Ireally well and so my friend guy and Ireally well and so my friend guy and I told Debbie hey we really like to taketold Debbie hey we really like to taketold Debbie hey we really like to take you out for lunchyou out for lunchyou out for lunch so she said okay so when you come from
Otherso she said okay so when you come from the annual meeting she said normally I'm gonna read come on now Thursday I am relatively Friday becomes crazy so when I said okay and uh we went to London and and what I found was we found out about that lunch with Daddy it was better than lunch with water okay because this is between us girls can we talk she said morning so I then I would ask it does war never said okay because this was in 2008 or 2009 and she starts laughing she said yeah he has a cell phone but it's in my draw it's my destination and he doesn't really know how to use it so he said she said when he goes on a trip I charge it and give it to him and he only knows how to call me on that side so he doesn't know if someone answers or whatever what to do so she said that whenever he needs to reach someone he'll call me but usually he
Ted Weschlersomeone he'll call me but usually he doesn't use that so anyway we went to lunch with with Debbie a few times and one time we were going to lunch with her I think in 2010 or 2011 so we went to the Berkshire headquarters Warren was standing at the elevator and we got to the hotel he was standing in the elevator apparently to greet us Fortune 10 Company CEO with nothing to do to greet some yoyos who come to London to the system so he says he says to God wait do you want a tour of headquarters I said sure so he's taking us around showing us all the memorabilia
Ted Weschlerso then he takes us into his private office right and in his private office there is a box on his desk and the box says too hard and this is a very famous box so what would say is that 99 of things that come to his deaths in terms of the investment ideas Fall in the two hard bar so they go into that box means I'm not
Questionerso they go into that box means I'm not interestedinterestedinterested so I looked in the box and I told Warrenso I looked in the box and I told Warrenso I looked in the box and I told Warren the box is emptythe box is emptythe box is empty like it's supposed to be full he said ohlike it's supposed to be full he said ohlike it's supposed to be full he said oh we'll fill it right now so it takes awe'll fill it right now so it takes awe'll fill it right now so it takes a bunch of peoplebunch of peoplebunch of people it's more so to answer your questionit's more so to answer your questionit's more so to answer your question basically most things we look atmeans there's no point wasting brainmeans there's no point wasting brainmeans there's no point wasting brain cells so if a company has never madecells so if a company has never madecells so if a company has never made moneymoneymoney I can't tell what the future is I don'tI can't tell what the future is I don'tI can't tell what the future is I don't know what's going on the rest of theknow what's going on the rest of theknow what's going on the rest of the world is excited about it whateverworld is excited about it whateverworld is excited about it whatever and 99 of shops are justand 99 of shops are justand 99 of shops are just and then once in a while a Turkishand then once in a while a Turkishand then once in a while a Turkish warehouse company comes in which doesn'twarehouse company comes in which doesn'twarehouse company comes in which doesn't look so hard then you can buy thatlook so hard then you can buy thatlook so hard then you can buy that so hope you like your storyforeignforeignforeign yeah I think they want to get you a micyeah I think they want to get you a micyeah I think they want to get you a mic thank youthank youthank you what would be your top pickswhat would be your top pickswhat would be your top picks for the next 10 years stock picks topfor the next 10 years stock picks topfor the next 10 years stock picks top topictopictopic so I only have a couple of ideas a yearso I only have a couple of ideas a yearso I only have a couple of ideas a year so there's not much out there in theso there's not much out there in theso there's not much out there in the sense that our long list andsense that our long list andsense that our long list and half the stuff I buyhalf the stuff I buyhalf the stuff I buy NW
OtherNWNW not going anywherenot going anywherenot going anywhere so I can't help you alreadyyou already have a couple namesyou already have a couple namesyou already have a couple names just read between the linesthere's not so much for month of thisthere's not so much for month of thisthere's not so much for month of this and that it's whatever you sell foreignand then weand then weand then we company operating the shop makes likecompany operating the shop makes likecompany operating the shop makes like ten dollars or somethingten dollars or somethingten dollars or something so the airport operator basically whatso the airport operator basically whatso the airport operator basically what happenshappenshappens it's like lamps to the storeit's like lamps to the storeit's like lamps to the store so when a aircraft comes in 150 or 200so when a aircraft comes in 150 or 200so when a aircraft comes in 150 or 200 people in the aircrafton a poor poor passenger basison a poor poor passenger basison a poor poor passenger basis so that that airplane will end up withso that that airplane will end up withso that that airplane will end up with duty-free sales for all 180 peopleduty-free sales for all 180 peopleduty-free sales for all 180 people of about fifteen hundred dollarsof about fifteen hundred dollarsof about fifteen hundred dollars so one airplane will bring in about 1500so one airplane will bring in about 1500so one airplane will bring in about 1500 of Top Line running Revenue which meansof Top Line running Revenue which meansof Top Line running Revenue which means that the airport operator gets about sixthat the airport operator gets about sixthat the airport operator gets about six hundred dollars for each airplane that'shundred dollars for each airplane that'shundred dollars for each airplane that's coming in just all the beautifulcoming in just all the beautifulcoming in just all the beautiful and when these concessions are given toand when these concessions are given toand when these concessions are given to these airport operatorsthese airport operatorsthese airport operators the the government which gives athe the government which gives athe the government which gives a concession will set theconcession will set theconcession will set the per passenger fee so they give theper passenger fee so they give theper passenger fee so they give the airport operator so when there's a
Questionerairport operator so when there's a airplane comes in the 1500 100 50 if it's an international flight it's about 15 to 20 dollars per passenger so about like three thousand dollars or something or airplane coming in as their feet the duty free motion is not regulated so they just give them so the duty-free is whatever you can charge whatever you want make whatever you want to do whatever you want same but food and breakfast is not really regulated too much so there's some parts of the business that are regulated like the this per passenger fee and so on but some parts that are and so it took a blend of all of that and what was interesting about the Kazakhstan one that they got was that was the only airport they got where they actually have the fueling not only the airport operators are going to deal with stuff on the runway and all that and on the ground so fueling is that's the biggest
Questionerground so fueling is that's the biggest piece of the pie for them and Kazakhstan is landlocked so everything has to come into my land over here so anyway so that's the the economics of that business the difficulties in that business are that you can get animal spirit so when there's a new airport being announced to be privatized then there are multiple people who want to get those beautiful screens and all that and the danger is that they get over it so if they overbear then you end up with a situation where you pay too much of a concession and then it doesn't quite work out and but one of the things that I think tab airports has going for it is that the geographies they operate in does not attract a lot of the big boys so like when they were doing the Kazakhstan video nobody wanted to know especially in 2020 and 2021 nobody wanted to buy an airport where there's
Questionerwanted to buy an airport where there's no traffic so anyway that's uh I really enjoyed in that particular case I knew the airport business generally had good economics but I studied it it was a lot of fun to study and so now I think we want about five or six percent so every 20th party love Johnny Walker is for the benefit of buying investors so should be good yeah go ahead sorry I'm only just Switching gears can you talk more about your foundation and how you get those 61 Mouse tricks just a quick question
Otherit's a good question I have to leave for I apologize but I'm down to know talked about you like telling stories and you've talked about a lot of stories about on Buffett but about you oh what was your first factor that an eagle used what you'll see okay we might be here all night my story was already given by boys and that's it he gave the whole story I think what I would let me put it this
QuestionerI think what I would let me put it this way I would say that when I and this is the thing this is the way it is for most of us in life many times when you make decisions or we might enter into a business venture or buy a stock or whatever that we do start a venture what do we do it may not work right so many times we have initiative like a few years back I bought an insurance company not in the stock market I bought the company another mistake like I realized within three months or buying a mistake and I was thankfully able to sell it just a little bit about the price you bought it though and and was done with that so many times we do these things where it doesn't work out but the thing is that the payoffs are so asymmetric that the ones that work they work so well that they more than make up for the ones and I think like can you use lose
Otherand I think like can you use lose workers should say the man in the arenaworkers should say the man in the arenaworkers should say the man in the arena or nothing Venture nothing here so Ior nothing Venture nothing here so Ior nothing Venture nothing here so I think I'm always trying to seethink I'm always trying to seethink I'm always trying to see I'm always trying to make sure thatI'm always trying to make sure thatI'm always trying to make sure that anytime there's somethinganytime there's somethinganytime there's something which seems to have a asymmetric payoffwhich seems to have a asymmetric payoffwhich seems to have a asymmetric payoff but where the where it doesn't work itbut where the where it doesn't work itbut where the where it doesn't work it will ruin if we something that can bewill ruin if we something that can bewill ruin if we something that can be tolerated then I wanna I wanna do thattolerated then I wanna I wanna do thattolerated then I wanna I wanna do that and just to give you an example of ofand just to give you an example of ofand just to give you an example of of these asymmetric payoffs is thatthese asymmetric payoffs is thatthese asymmetric payoffs is that when I when I was thinking of waitingwhen I when I was thinking of waitingwhen I when I was thinking of waiting for the lunchroom perfectfor the lunchroom perfectfor the lunchroom perfect my my wife at the timemy my wife at the timemy my wife at the time called it weird because it's kind ofcalled it weird because it's kind ofcalled it weird because it's kind of strange it cost hundreds of thousands ofstrange it cost hundreds of thousands ofstrange it cost hundreds of thousands of dollars anddollars anddollars and what's the point with whatever you wantwhat's the point with whatever you wantwhat's the point with whatever you want to do it so she was born here the lunchto do it so she was born here the lunchto do it so she was born here the lunch money goes to check the last money goesmoney goes to check the last money goesmoney goes to check the last money goes to chat right and so my thinking at theto chat right and so my thinking at theto chat right and so my thinking at the time was that this was 2007. at the timetime was that this was 2007. at the timetime was that this was 2007. at the time I had a network of 85 million a largeI had a network of 85 million a largeI had a network of 85 million a large portion of that was because of profits
Otherportion of that was because of profits intellectual property that I was using for free so my take was the tuition building right and so I feel like what an appropriate tuition to pay I said 2 million is fine I've been two million it should be okay because there will be also more earnings in the future right so I was bidding for the lunch and I said I'll keep bidding until I have two million if I have and the bidding flow the 650 000 so we didn't get there and my only objective in in doing the lab was just to thank you I didn't have any agenda I just said I want to he's willing to take a bribe to sit down for lunch which is great I can say thank you all I actually have a large stolen this informed you will not understand this I need to touch your feet and when I touch your feet you need to put your hands on my head and bless
Ted Weschlermy head and bless whatever you want okay so he went through that we even though he didn't understand what was going on and so my only agenda was to be able to thank him now what ends up happening with that lunch is that a friendship develops again but then the more important thing is he introduces the Charlie Munger Plateau Charlie was way better and then much closer friendship I when I was in California we would calling meat at Charlie's place for dinner at least once every two three months at playbridge with him probably at least twice a month it'll be like Friday after five o'clock or so and so much Rich interaction and several times in the last few years when I had issues problems and so on not related to investing I brought in a child and I got incredible advice and incredible perspective it was very helpful so I never expected that from the lunch
OtherI never expected that from the lunch because I say thank you so then later my wife would say it was other than marrying me the most smart thing you did so it was something I think I find it and I think even in your case the question you asked about dakshana the thing is that when I started dakshana one of the things that I understood it's been about 15 years now is that giving me money away is far more difficult than making it especially giving it away effectively is much more difficult and I started to give it away when I was 43 because I felt like if I got into my 70s or 80s I'll be too old and I would have no energy and I would not be able to do anything other than just write a check so I felt and especially I was going to be giving money away in India and I'm at that time I was living in California I was not planning to spend much time in
Warrenwas not planning to spend much time in India so it would be delegated very heavily and the odds that we would get taken for a ride and that we would lose money were extremely high and when we started dakshana I just had a very simple model I said that we would give away two percent of our assets every year and I didn't really care if the two percent went with no results if the two percent went with no results as a complete fraud and we lost the money I said if we lost the money in the first year with two percent the next year we put another two percent down and we keep doing that with the idea that I'm not an idiot I keep learning and and so the idea was that we so the difference between investing and charity is investing we have to go we try to go low risk High return but we try to minimize that downside maximize the upside in charity what you have to do if you want to succeed
Otherwant to succeedwant to succeed you have to go high risk High returnyou have to go high risk High returnyou have to go high risk High return so you have to swing for the fence aso you have to swing for the fence aso you have to swing for the fence a baseball term like only on Cricket termsbaseball term like only on Cricket termsbaseball term like only on Cricket terms only go on fixers so you might getonly go on fixers so you might getonly go on fixers so you might get burned out but you want to go for sixburned out but you want to go for sixburned out but you want to go for six hours and the only way to move thehours and the only way to move thehours and the only way to move the needle in charityneedle in charityneedle in charity is to go for success and so we found Iis to go for success and so we found Iis to go for success and so we found I just by a accident I ran into this guyjust by a accident I ran into this guyjust by a accident I ran into this guy in India super 30. he was taking 30 kidsin India super 30. he was taking 30 kidsin India super 30. he was taking 30 kids a yeara yeara year like four kids and he was training themlike four kids and he was training themlike four kids and he was training them for the IIT entrance examfor the IIT entrance examfor the IIT entrance exam which is a very topic thenwhich is a very topic thenwhich is a very topic then and he was getting 27 of their 27 or 30and he was getting 27 of their 27 or 30and he was getting 27 of their 27 or 30 28 or 30 and28 or 30 and28 or 30 and I went to visit his vicinity he wasI went to visit his vicinity he wasI went to visit his vicinity he was running in a slum in in Patna his motherrunning in a slum in in Patna his motherrunning in a slum in in Patna his mother used to cook for the kids and he used toused to cook for the kids and he used toused to cook for the kids and he used to rentrentrent these almost slum-like homes for thesethese almost slum-like homes for thesethese almost slum-like homes for these 30 kids to Live While there we coached30 kids to Live While there we coached30 kids to Live While there we coached and he and a couple of teachersand he and a couple of teachersand he and a couple of teachers basically donated time to make it happenbasically donated time to make it happenbasically donated time to make it happen and he was a very gifted mad teacher so
Otherand he was a very gifted mad teacher so he was really good at ithe was really good at ithe was really good at it so I told him why don't we scale itso I told him why don't we scale itso I told him why don't we scale it right I said I'll fund youI don't want any outside money he wasI don't want any outside money he wasI don't want any outside money he was running tuitions on the side which wasrunning tuitions on the side which wasrunning tuitions on the side which was funding this study these 30 kids whofunding this study these 30 kids whofunding this study these 30 kids who keep doing that so one of the thingskeep doing that so one of the thingskeep doing that so one of the things that really helped me in lifethat really helped me in lifethat really helped me in life a core mental model I used a lot is thea core mental model I used a lot is thea core mental model I used a lot is the model of cloning most humans are notmodel of cloning most humans are notmodel of cloning most humans are not willing to clone they think it's beneathwilling to clone they think it's beneathwilling to clone they think it's beneath them so I asked Arnold I said Anna dothem so I asked Arnold I said Anna dothem so I asked Arnold I said Anna do you careyou careyou care if I replicate your model if I cloneif I replicate your model if I cloneif I replicate your model if I clone your model he said that it's a very goodyour model he said that it's a very goodyour model he said that it's a very good thing please go ahead and flow it I'llthing please go ahead and flow it I'llthing please go ahead and flow it I'll help you sohelp you sohelp you so I decided thatI decided thatI decided that there was already this guy doing thisthere was already this guy doing thisthere was already this guy doing this modelmodelmodel and I wanted to do it on the industrialand I wanted to do it on the industrialand I wanted to do it on the industrial scale so I said okay we basically willscale so I said okay we basically willscale so I said okay we basically will do this model we have several thingsdo this model we have several thingsdo this model we have several things that we didn't know how to do at thatthat we didn't know how to do at thatthat we didn't know how to do at that time we didn't know how to find the kidstime we didn't know how to find the kidstime we didn't know how to find the kids and but then we found us amazing school
Otherand but then we found us amazing school system run by the government which is a magnet school system which we did what's your next book
Otherthere are two books I get to write but the problem is knows what the answer is the problem is I can't explain why because we at 11 o'clock at 12 o'clock so I can only give you the time and then I let pradeep explain to you in the next meeting what the book's all about so one book I have get to write is called adventures in Vegas and so I'm looking forward to writing my book it's a wild place it's a wild adventures and the other book that I have to get to write is how to talk to God you want the clueless about many things they don't know how to talk about and I need to explain how to talk to you so those are my two books I get to write but people explain why yeah
Questionerall right thank you
Other[Applause][Music]