Warren Buffett U.N.C. 1996 lecture | Part 6: Berkshire's performance, children and inheritance

1996 U.N.C. Lecture Series continued...

Talking about Berkshire's performance...

"The greater the capital we work with at Berkshire, the worst we are going to do, everything else being equal, in terms of percentage return on equity."

He says the more capital you have, the smaller the number of investments you can make that would have an impact on the overall net worth of the company. Berkshire's size has increased so much that only huge investments would make sense for the shareholders.

Talking about family, inheritance and money...

"You should leave your children with enough money so that they can do anything, but not enough where they would do nothing."

This is one of my favorite quotes and I like this idea when it comes to inherited wealth. You would want endless possibilities for your children, but you would also want them to be independent and learn from life's challenges as well. The majority of us learned a great deal through the difficult periods of our lives. No one should be robbed of those experiences.

I also admired when Buffett acknowledged that this society was responsible for the majority of his wealth, so he felt the obligation to give back. A very honorable and respectable motivation behind his charitable nature.

We have come to the end of the 1996 U.N.C. lecture series and I hope you can see why I believe this to be one of my favorite sources of Warren Buffett's wisdom online. I hope you have come appreciate not only his investing wisdom, but also gained insight into his character of integrity as well. Thank you for sharing this journey; I hope it helped you build on your foundation of investing or added to your current system.


My next series will be an in-depth analysis of his Chairman's letters going as far back as we could find. This should carry on for several months, but any student of Warren Buffett knows that this is a must-read in order to understand how he thinks about his investments and policy decisions.


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