"Oil Discovered In Hell"
Warren Buffett's favourite story ever...
Good morning, everyone.
This week’s newsletter includes: The Sage of Omaha’s favourite story ever, and my trip to Steve Schwarzman’s personal office.
The Investors Route To Heaven...or Hell
When faced with questions on valuation, Warren Buffett tells a story passed down by his mentor Benjamin Graham...
It’s the story of an oil prospector who dies, and meets St. Peter at the Pearly Gates.
When told his occupation, St. Peter said: “Oh, I’m really sorry...”
“You seem to meet all the tests to get into heaven. But we’ve got a problem...”
“See that pen over there? That’s where we keep the oil prospectors waiting to get into heaven. And it’s packed - we haven’t got room for even one more.”
The oil prospector thought for a minute.
Then he said: “Would you mind if I just said four words to those folks?”
“I can’t see any harm in that”, said St. Peter.
So the oil prospector cupped his hands, took a deep breath and yelled at the top of his lungs:
“OIL DISCOVERED IN HELL!”
Immediately, the oil prospectors broke the lock off the door and stampeded out, on a mission to reach hell as fast a possible.
“You know, that’s a pretty good trick”, St. Peter said.
“Come on in! The place is yours - you’ve got plenty of room in heaven now.”
The oil prospector paused...
He scratched his head, then said:
“No. If you don’t mind, I think I’ll go along with the rest of ’em. There may be some truth to that rumor after all!”
Recommendation’s
Check out this recent interview with Warren, 94-years-old but as sharp as ever. I found the exact 1985 Berkshire Hathaway Shareholder Letter where Warren re-tells the oil prospector story.
Business Story continues to grow and grow. New subscribers this week from Goldman Sachs, JP Morgan, Cambridge University faculty and some west coast VC’s.
What I’m reading: I’m re-reading Steve Schwarzman’s “What It Takes” this week. Such a fantastic book, tons of advice and practical learnings. I had the chance to meet Steve in his NYC office earlier this year, wild story. I’ll tell it next week!
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Joseph Cass