Bill's Notebook

Added some Berkshire Hathaway stock to my Sharebuilder account as the stock split now allows me to finally afford a few shares.  I’ve always admired Warren Buffet and his management/analysis skills.  And he is the cornerstone of my favorite piece of advice about advice.

When receiving advice (unsolicited or solicited), always consider two things.  First, does the person actually follow their own advice?  Second, how well did they do following their advice?  Given the choice between receiving advice from your average stockbroker or from Warren Buffet, who would you listen to?

Seems simplistic and rather obvious but I have been amazed at the number of people who turn down Warren Buffet when they don’t like the advice.  They would rather look for feel-good advice then the simple and effective advice such as eating healthy and exercising more.

But it’s this quest for the overnight, silver bullet piece of advice that drives much of the advice industry.