Warren Buffett's Investment Philosophy and Criteria for Trustworthy Companies

Understanding the essence of stock investment lies in trusting and delegating to capable management to create long-term value, which requires continuous assessment of trustworthiness.

### The Essence of Stock Investment and the Long-Term Growth of Companies
Tesla's capex has decreased while its market cap has increased, Apple and Amazon's market cap performances have been notable in 2022. Understanding the value that stocks can provide to individuals is crucial for stock investment. The long-term success of stock investment lies in the ability to identify companies with high and consistent return on invested capital (ROIC). Exceptional companies can achieve compound growth by reinvesting internal reserves at a high ROIC, but it's rare to find such opportunities.

### Warren Buffett's Investment Criteria and the Case of Apple Stock
Investing in companies with low reinvestment returns may result in low growth in value. A company's ability to generate unique value for shareholders and adapt to changing industry landscapes is crucial for long-term partnership. Warren Buffett's perspective on Apple stock is based on the company's ability to provide irreplaceable value to customers, rather than just financial indicators.

### The Value of See's Candies and Apple's Potential
Warren Buffett values See's Candies for its ability to return capital to shareholders and reduce costs. He is optimistic about Apple's future potential and its increasing ownership percentage. Tesla's negative net profit and increasing depreciation expenses make it less favorable for Buffett, while Amazon's decreasing owner's equity raises concerns. The announcement of Apple's Vision Pro has led to stock disappointment due to its high price, impacting sales forecasts.

### Apple's New VR Device and Its Focus on User Experience
Apple has released a high-priced VR device, signaling a focus on the premium market rather than mass sales. The company is prioritizing hardware and user experience over content, aiming to provide a truly immersive experience with advanced technology. Apple is taking a gamble by emphasizing the importance of hardware specifications to meet user expectations, despite the high price of the device.

### Apple's Strategy with the Vision Pro and Its Implications
Apple prioritizes user experience over cutting-edge hardware, but has made adjustments for the Vision Pro. The high price of the Vision Pro is likely due to the need for incredible hardware and may decrease as the technology becomes more common. The company's message with the Vision Pro is to push the entire market towards developing similar devices, aiming for improved productivity and lower production costs.

### Warren Buffett's Unique Yen Bond Investment Strategy
Buffett issued yen bonds to purchase yen assets, hedging against the yen exchange rate instead of engaging in a carry trade. By borrowing at a low interest rate, he was able to earn a high return, possibly through the inverse of the P/E ratio. His confidence in significant inflation may have influenced his investment strategy. Japanese trading companies, similar to Berkshire as a holding company, have evolved from facilitating trade to acquiring manufacturing companies and engaging in resource development, presenting an opportunity for investment without the need to bet on the exchange rate.

### Warren Buffett's Trust-Based Investment Strategy
Warren Buffett is increasing his stake in Japanese trading companies due to his trust in their excellent executives and business development know-how. He also emphasizes the importance of probabilistic thinking and favorable risk-reward ratios in investing. Buffett's investment perspective is based on finding reliable companies with a good structure and trustworthy people in charge, focusing on long-term trust rather than predicting the future.

### Making Life Decisions and Building Relationships
It's crucial to consider the potential damage of a decision, not just the possible outcomes. Spending less than we earn is vital, as is avoiding toxic influences and prioritizing long-term learning over immediate gratification. Building relationships with trustworthy and positive individuals is key to living a happy and peaceful life.

### Warren Buffett's Investment Philosophy: Trust, Structure, and Long-Term Thinking
* 📊 Warren Buffett's investment philosophy is based on **trust, structure, and long-term thinking**, focusing on the **value that stocks can provide to individual investors**.
* 🏦 Buffett emphasizes the importance of investing in companies with **high return on invested capital (ROIC)** and **reinvestment capabilities**, as they can provide **significant long-term returns**.
* 📱 Buffett's investment in Apple is based on the company's **unique brand value** and its ability to **continuously generate money for shareholders** through its products.
* 💻 Apple's recent announcement of the Vision Pro VR device reflects the company's focus on **user experience** and willingness to invest in **cutting-edge hardware**.
* 🌐 Buffett's recent investment in Japanese trading companies is based on a combination of factors, including **currency hedging** and **attractive valuations**.
* 🏗 Buffett's investment philosophy extends beyond individual stocks to the broader financial system, emphasizing the **importance of trust and structure** in both investing and life decisions.
* 🤝 Buffett's approach to investing and life is characterized by **probabilistic thinking**, **risk management**, and the importance of **surrounding oneself with trustworthy individuals**.
* 🔍 The key question Buffett continually asks in investing and life decisions is whether he can **continue to trust the people and structures involved**, highlighting the **importance of ongoing evaluation and trust**.

[월가아재x홍진채] 테슬라, 애플, 아마존, 그리고 일본을 보는 워런 버핏의 관점 4부 (총 4부작)

시카고 옵션 거래소(CBOE)에서 파생상품 트레이더로 커리어를 시작하여, 보스턴과 홍콩의 헤지펀드를 거쳤고, 데이터 과학 분야로 전향하여 월가의 투자은행 Lazard, 핀테크 스타트업 Kensho Technologies를 거쳐, S&P Global의 리드 데이터 과학자로 일했습니다. 

현재는 가치투자의 4단계를 반자동화하는 플랫폼 Valley AI(www.valley.town)를 개발하고 있는 핀테크 스타트업 NeuroFusion(www.neurofusion.ai)를 운영하고 있습니다.
