Last week I gave a lecture to Columbia's Student Investment Management Association at Columbia Business School. The topic: Why is Warren Buffett, the world’s greatest active investor, suggesting that investors forego active funds in favor of passive index funds? Is stock picking a fool’s game? This question is top of mind for these aspiring young investors. Their hero's advice has many questioning their career aspirations in active management.
Here's a video of my talk in which I explain how they should and should not interpret Buffett’s remarks.
In my speech, I also explain how enterprising investors and entrepreneurs can capitalize on the zeitgeist of these times. The investment advisory business is in the early innings of a badly needed structural overhaul. Sadly, most of the established players will be reluctant followers rather than leaders in this overhaul. Their incredibly profitable legacy business models are a barrier to change. Therein lies the opportunity for entrepreneurs to build a new type of firm. My advice to students is to work for - or build - the kind of firm that Buffett would admire, for that's our future.
[If you’d like a written transcript, you can request one HERE.]
Amen of the Week:
“The lesson that is continually reinforced in me is that to take advantage of unexpected opportunities, we must leave ourselves available… Many successful people I know set magnificent goals for themselves… I don’t engage in that kind of long-range planning. Instead, I leave myself and my company available to take advantage of opportunities as they arise.”
- Truett Cathy, founder of Chick-fil-A
Doing Business the Chick-fil-A Way
Yours in the Field,
Frank Byrd, CFA
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