7 Nuggets of University of Berkshire Hathaway (vol.16)

1. 3 risks: Capital risks, nature of business, and commodity business.

2. Opportunity cost

3. Munger noted Buffett is best rational person he ever known.

4. Buffet admitted to selling some stock positions of Disney, Wells Fargo, Freddie Mac, and McDonald in 1997.

5. Berkshire had to pay a heavy price to sell a stocks large degree trapped to holding on.

6. Berkshire’s stock was ridiculously overvalued in 1998.

7. Buffet changed the ratio of bonds.