1/ "If the price of a painting goes from $250 to $50 million in one hundred years, what's the annual rate of return? Buffett's answer was instantaneous: '13.0 percent.' The astonished Stavrou asked, "How did you do that?"
Robert Hagstrom writes in
"The Warren Buffett Portfolio"
2/ Buffett pointed out a compound interest table revealed the answer. (He's a walking interest table? Maybe.) Another way to approach the problem was "to go by the number of times it doubles ($250 doubles about 17.6 times to get to $50M, a double every 5.7 years, or about 13%."
3/ "I asked him whether he ever used a calculator." Buffett replied, "I never owned one and wouldn't know how to use one."
"But how do you do more complicated calculations?" Stavrou pressed. "Are you gifted?"
"No, no," Buffett said.
4/ Buffett said. "It's just that I've been working with numbers for a long time. It's number sense."
"Can you give me an example? Like what's 99 times 99?"
Without missing a beat, Buffett replied, "9,801."
Stavrou asked Buffett how he knew that. "I read Feynman's autobiography."
5/ A story I was told: A drives up to a group of people including Buffett. Buffett asks A what he paid for the car. A replies: "127,500." Buffett immediately: "You could have bought X instead for $45,250. At 12% in Z years that difference would be worth [insert correct answer].
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