Warren Buffett: Aesop and birds in the bush

Audience: Second short question is why haven’t you written down your set of formulas or your strategies in written form so you can share it with everyone else?

Warren Buffett: Well I think I actually have written about that. If you read the annual reports over the recent years, in fact the most recent annual report I used what I’ve just been talking about, I used the illustration of Aesop. Because here Aesop was in 600 BC- smart man, wasn’t smart enough to know it was 600 BC though. Would have taken a little foresight. But Aesop, in between tortoises and hares, and all these other things he found time to write about birds. And he said, “A bird in the hand is worth two in the bush.” Now that isn’t quite complete because the question is, how sure are you that there are two in the bush, and how long do you have to wait to get them out? Now, he probably knew that but he just didn’t have time because he had all these other parables to write and had to get on with it. But he was halfway there in 600 BC. That’s all there is to investing is, how many birds are in the bush, when are you going to get them out, and how sure are you?

Now if interest rates are 15 percent, roughly, you’ve got to get two birds out of the bush in five years to equal the bird in the hand. But if interest rates are 3 percent, and you can get two birds out in 20 years, it still makes sense to give up the bird in the hand, because it all gets back to discounting against an interest rate. The problem is often you don’t know not only how many birds are in the bush, but in the case of the internet companies there weren’t any birds in the bush. But they still take the bird that you give them if they’re in the hand.

But I actually have written about this sort of thing, and stealing heavily from Aesop who wrote it some 2600 years ago, but I’ve been behind on my reading. Yeah?

Source: Warren Buffett Speech to University of Georgia Students Part 1 (Archive 2001)

Money Chimp have made a really explicit formula here.

 

Quotation Curation

“What is a cynic? A man who knows the price of everything and the value of nothing.
And a sentimentalist, my dear Darlington, is a man who sees an absurd value in everything, and doesn’t know the market place of any single thing.”

– Oscar Wilde, Lady Windermere’s Fan

“The first step – especially for young people with energy and drive and talent, but not money – the first step to controlling your world is to control your culture. To model and demonstrate the kind of world you demand to live in. To write the books. Make the music. Shoot the films. Paint the art.”

– Chuck Palahniuk

“When your self-worth goes up, your net worth goes up with it.”

– Mark Victor Hansen

 

Arts Council bans unpaid intern ads!

AWESOME NEWS ABOUT ARTS INTERNSHIPS!

The Arts Council England has posted a public warning to employers recruiting unpaid interns via their jobs website http://www.artsjobs.org.uk. The announcement, featured prominently on the home page and every page, reads:

Unpaid opportunities

We recognise that there is great value in people having access to proper work experience, where it is offered and arranged properly and is a mutually beneficial arrangement, but that this should never be used as a way of attempting to circumvent national minimum wage regulations. Please ensure that your posts are compliant with our terms and conditions. We reserve the right to remove any posts without further notice to you which, in our reasonable judgment, do not comply with the terms and conditions.

Internships in the arts

Arts Council and Creative & Cultural Skills have published these guidelines to help clarify the legal obligations of arts organisations offering internships. Please note that we will not accept postings on Arts Jobs for unpaid internships unless they are part of a recognised further or higher education course.

The Arts Council has also published guidelines to clarify the legal obligations of arts organisations offering internships here.

Tanya de Grunwald is tireless and inspiring. She wrote the useful and brilliant books How to Get a Graduate Job in a Recession and Dude, Where’s My Career?: The Guide for Baffled Graduates (recommended!). She has written on the subject in national newspapers and magazines and she inspired me from the beginning of my own bewilderment just out of University in the recession.

Graduate Fog has campaigned against unpaid graduate internships and the site is an awesome source of graduate careers advice – particularly in the arts and media, the two worst offenders when it comes to exploitation of keen, young graduates.

The Arts Council announcement and guidelines are fantastic news!

Arts Council England’s executive director Moira Sinclair said to Graduate Fog:

“The arts in England can only benefit from a wide range of ideas and voices in both artistic and leadership roles. If we don’t create fairer entry routes into the arts workforce we risk closing the door on a new generation of talented leaders from a range of backgrounds, and the arts will suffer.

“That’s why the Arts Council published Internships in the Arts last year, which we hope will help arts organisations offer high quality, paid internship opportunities that don’t put them at risk of legal action. These guidelines reflect the law, rather than create new rules or regulations, and while the Arts Council has no legal authority to find an employer in breach of the law we would encourage all arts organisations to take note of their responsibilities.

“We are working hard to ensure that employment opportunities in the arts are open to all and to build a diverse, highly skilled arts workforce which is why we have also established the Creative Employment Programme.”

Use this job search on Graduate Fog to filter out unpaid graduate positions!

Who will write poetry about the economy?

Allow me to introduce…

Criminonymous: A criminologist and advocate of restorative justice, truth and reconciliation for the most harmful crimes and social conflicts (and everywhere else where it’s appropriate).

This is an astute poet well versed in economics, crime and restorative justice. I re-publish his poetic call for action to direct our economic productivity and attention to a not-for-profit banking system.

Sounds much better than the current situation, doesn’t it? Until philosophers become Kings, and poets become economists… Continue reading

Art investors raise demand for insurance.

Wealthy art investors are purchasing more insurance to cover their collections.

A Stonehage Group report this month showed a high performance of long-term returns on art assets relative to many other asset classes, and clients have significantly increased the level of insurance cover for their art collections over the last couple of years.

Stonehage executive director Steven Kettle said: “The long-term performance of the art market, particularly at the high end, has delivered impressive returns, so collectors increasingly need to ensure they have the right cover in place.”
Continue reading

Quotation Curation

“Even at [the art market’s] height, 1% of 1% of 1% of all artists made money. You can rail against the business practices of the art world, but even in flush times reputations are built on credibility, not on money or the market. The public is suspicious of the art world because the art market, and not art, is what they saw first when they saw art. Regardless, just because a dealer makes a lot of money doesn’t mean that they have the respect of the art world. Money doesn’t earn respect. Respect exists outside of the market. If you are in art for the money, you’re not really in art at all. As Brice Marden said: “It’s not the art that’s suffering; it’s the market that’s suffering. They don’t have anything to do with each other.”

– Jerry Saltz, The Art Newspaper critic
Continue reading

How to apply for admin + sales at a poetry magazine

“Dear Amanda,

Thank you for sending your CV and an email in verse which I enjoyed reading.”

 

You must get many poets apply

But if I may I want to be sly,

For a passion for poetry is not all

I have experience in editorial,

Magazine journalism is my forte

And I’m already self-employed today.

So it is inevitable I will implore

I can bring your sales, subs and website to the fore

If you but perchance to accept

My CV and application for you to vet.

Orchestra of recycled instruments in Paraguay

How do you invest in music when you can’t afford instruments?

In Paraguay, 1.5 tonnes of rubbish are deposited daily in Cateura, a landfill site on the outskirts of the capital, Asuncian. An estimated 500 gancheros (recyclers) separate the plastic and aluminium, while their children play amid the rubbish and wait for parents to finish work, Continue reading