warren buffet questions

Let's assume you are going to start a laundry machine business. How would you analyze whether it's viable?

"viability" = whether you can make a profit with a business for laundry machine operation ... rev. bucket - location - # of customers you could get - how frequently they do laundry and how much they pay (volume & price) cost bucket -cost of maintaining and servicing machines -building maintenance -hiring someone to collect cash, clean, and open/close the building each day maybe use this as an example for the $1mil question

Let's say you had $10 million to invest in anything. What would you do with it?

1. ask for investor goals (big capital gains over 30-40yrs, looking for tax free retirement income) 2. if investing over 30-40 years and going for high capital gains = well diversified portfolio 3. if investing for tax free income = municipal bonds

Can you talk about a company you admire and what makes them attractive to you?

Do not say something commonly known possible answer: Voyager Space Holdings qualities that investors would find attractive - investing in an industry that is expected to quadruple in size by 2040, small lean team with huge amounts of capital and talent to support it, business model holds in a down market

Can you explain to me, in simple terms, the subprime crisis?

In simple terms, banks made mortgage loans to people who were in no position to pay them off - or even meet monthly payments. Since interest rates were at historical lows, borrowing was easy. At the same time, mortgages were no longer just loans made to individuals - they were sliced up, combined and "packaged" into securities that banks traded, acquired and sold to investors. A typical "package" might contain mortgages given to both "credible" borrowers as well as mortgages granted to more risky borrowers - the more risky ones were labeled as "subprime"

If you owned a small business and were approached by a larger company about an acquisition, how would you think about the offer, and how would you make a decision on what to do?

Key things to consider = price, form of payment, future plans for company To make a decision, you'd have to weigh each one. There's no magical way to decide. You might also point out that if something is particularly important to you - such as retaining a role in the company - then a difference of intentions there could be a "deal‐breaker."

Do you agree with the $700 billion bank bailout?

These days, it's probably better to say "yes" because, as we witnessed with the bankruptcy of Lehman Brothers, if a financial institution that's large enough collapses, it can have ripple effects and bring down the rest of the economy and financial markets along with it.

Let's say you could start any type of business you wanted, and you had $1 million in initial funds. What would you do?

ask clarifying question to see if interviewer is looking for something specific niche business with high margins that requires little startup capital & ongoing maintenance niche b/c most broad, horizontal markets are already dominated explain why it's attractive possible answers: AI capabilities but for space industry?

pitch me a stock

need to mention specific financial figures 1. Give the name and summarize what the company does. 2. Give a brief overview of its financials to indicate its size and how profitable it is. 3. State how it's undervalued or more attractive than its rivals, due to any competitive advantages it has. 4. Say how there is a long‐term trend in its favor - it's not just looking good in the past month. 5. Talk about how the next 5‐10 years will be really good for the company. *amesite?

We do most of our work with technology companies. Can you talk about a trend or company in the industry that has piqued your interest lately?

relevance, the why, and how it affects the *whole* mkt

Tell me about an M&A deal that interested you recently

who were buyer and seller? (background info if not household name) price and multiples? discuss the dynamics of the deal - how it developed, if anyone else was interested, and what implications it has for the industry