Warren Buffett on the lottery of birth
One of the reasons J.D. asked me to join his merry band of GRS writers was so that I could add the occasional investing lesson to the line-up. Today, I’m going to hand that duty off very quickly to someone else, and then get to a life lesson from a great investor.
Today’s lesson comes from fund manager and former Motley Fool writer Whitney Tilson, whose Tilson Focus Fund (TILFX) has the best one-year return in Lipper’s multicap core category, according to Barron’s. In a recent interview on GuruFocus, Tilson said he began his investing career by reading all of Warren Buffett’s letters. If that sounds like good advice to you, every Berkshire Hathaway annual report since 1977 — which include Buffett’s letters — can be found at the Berkshire website.
The Ovarian Lottery
But if you’d like some other kind of wisdom from Buffett, here’s a scenario that he often describes in speeches and interviews. (We’ve now moved into the “life lesson” part of this show.)
It’s 24 hours before your birth, and a genie appears to you. He tells you that you can set the rules for the world you’re about to enter — economic, social, political — the whole enchilada. Sounds great, right? What’s the catch?
Before you enter the world, you will pick one ball from a barrel of 6.8 billion (the number of people on the planet). That ball will determine your gender, race, nationality, natural abilities, and health — whether you are born rich or poor, sick or able-bodied, brilliant or below average, American or Zimbabwean.
This is what Buffett calls the ovarian lottery. As he explained to a group of University of Florida students, “You’re going to get one ball out of there, and that is the most important thing that’s ever going to happen to you in your life.”
According to the world’s third-richest man, that’s a good perspective to have when setting the rules for our world. We should be designing a society that, as Buffett says, “doesn’t leave behind someone who accidentally got the wrong ball and is not well-wired for this particular system.” He points out that he is designed for the American system — and he was lucky to be born into it. He can allocate capital, and he lives in a place and at a time when those skills are well rewarded. (His pal Bill Gates is quick to point out that if Buffett had been born in an earlier time, he’d be some animal’s lunch because the Oracle of Omaha can’t run fast or climb trees.)
When Buffett talks about this lottery, he often concludes by asking:
If you could put your ball back, and they took out, at random, a hundred other balls, and you had to pick one of those, would you put your ball back in? Now, of those hundred balls … roughly five of them will be American. … Half of them are going to be below-average intelligence, half will be above. Do you want to put your ball back? Most of you, I think, will not. … What you’re saying is, “I’m in the luckiest 1% of the world right now.”
A Matter of Perspective
This is a good perspective to keep in mind as we bemoan our smaller 401(k)s and shriveled home equity. Chances are, you’re not worth as much as you were a few years ago, but you’re still much, much richer than the vast majority of people in the world. We live better than most people, and even better than Americans from 20 years ago, who didn’t have the Internet, email, cell phones, iPods, GPS devices, and SpongeBob, not to mention scores of medical and pharmaceutical advances.
This is not to minimize the difficulties of the past couple of years, or to say that some Americans don’t live wretched lives due to tragedy or severe health issues. But as J.D. has written before, research indicates that gratitude is a key ingredient to happiness. If you wouldn’t be inclined to turn your ball back in for another draw at the ovarian lottery, then thank your lucky stars. I sure I do.
J.D.’s note: One of my goals for the next few weeks is to sit down and read all of Buffett’s shareholder letters. Even before Robert submitted this article, I downloaded them all, and I’m waiting to plop them on my iPad this Saturday so I can read them on my flight to Chicago. As I’ve mentioned before, Buffett is one of my financial heroes, and I admire his philosophy.
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There are 71 comments to "Warren Buffett on the lottery of birth".
‘I’m waiting to plop them on my iPad’
Dude, did you just show off?
What’s going on in Chicago?
Great article. Many times we complain about the state of things in this country or how bad the economy is but we do need to remember that we have so many things to be thankful for!
I am grateful for living in a free country where I won’t be arrested for voicing my opinion.
I am grateful for having lovely children and devoted husband.
I am grateful for having good health.
The political philosopher John Rawls has a lot to say about the scenario you quote from Buffet — the point being the same, that we ought to design a society’s founding principles from behind a “veil of ignorance” where we don’t know who we’ll end up being.
Not sure who came up with this first — Buffet, Rawls, or (more likely) someone else who never receives credit for it — but it’s an attractive way of thinking… I agree that this sort of thought experiment can be a humbling source of perspective.
I read the idea of ‘birth lottery’ as a call for gratitude for the cards we are dealt at birth and as a heads up that those born in less fortunate conditions, be that geographical, familial, cultural, arrived with a harder hand – no Ace, no pairs, a couple jokers.
Gratitude is indeed valuable. So is humility and engaged compassion.
For all the rhetoric of pulling ones self up by the boot straps, one needs boots to begin with. It’s not impossible without boots, just a whole lot harder.
…
Absolutely, there is a web site where you can enter in your net worth or your annual salary and it tells you how you stack up against the rest of the world. Most people reading this blog will come out in the top 1% or the top 10%. I know how lucky I was to be born to parents with advanced education, who valued education at a time when women had more choices regarding birth control, education and careers.
But that doesn’t mean we shouldn’t be striving for more equality among the men and women, among the races, universal health care, better schools, roads, bridges, etc.
I’m not looking for more stuff, but it would be great not to have to worry about things like losing one’s health insurance when you have a pre-existing condition.
There is a great book by an NPR author in which he studies which countries score highest on happiness. He found that the happiest countries are countries like Sweden where people pay a lot more in taxes but know that their children will be taken care of and that they will be taken care of in sickness and old age.
I enjoyed this post quite a bit, especially the SpongeBob reference as I am a devoted fan! It’s so important to let gratitude shape and inform your perspective. Gratitude and humility I believe are the two pillars of good character. Thanks for the handy link; I’ve long since heard that Buffet’s shareholders letters are inspirational. It will be great to see Buffet’s devotion to his principles of choosing growth companies based on value and not allowing his emotions to run amuck every time market storms come.
JD – are the details finalized yet for your Chicago book signing? I don’t recall you ever saying anything definitive.
I’m glad to see someone addressing this issue! All too often I read things like “start your own business” or “get an advanced degree” or “get a higher paying career” and I shake my head. As a former teacher, I’ve seen nearly the full gamut of people entering the workforce in my area (I say “nearly” because I didn’t see the ones who had already dropped out.)
It’s easy to see how people get left behind, even in North America.
Buffett is right on. Gratitude is indeed essential.
The one area in which Buffett disappoints me is that he does not speak up strongly enough in opposition to those who say it is okay to ignore valuations when setting your stock allocation. He makes the point often. But it is a point that must be made forcefully if we are to counter the Get Rich Quick impulse that draws us to believe that Bull Market gains are real.
We live in a wonderful country. But it’s not an automatic that it will always remain that. We need to be willing to fight for it or the good things that were available to us will not be available to our children.
Rob
#6 Spongebob definitely makes our lives much more enjoyable 🙂
This is excellent insight. Instead of bemoaning our luck, most of us reading this post are probably in “better shape” than the majority of others in the world. More importantly, most of us have the ability to change our lives and realize a noticable impact. In other places in the world (the other 80%) it’s not going to be felt as much. So, what will you do, now that you realize this? Gratitude. It has me greatful this morning.
@Adam D (#1)
I’m not showing off so much as publicly rationalizing, trying to justify my purchase. 🙁
@DreamChaser57 (#6)
No details on the Chicago meet-up. I know, I know. Time is getting short! I’ll ping Chris and Alexandra later today to see if they know anything else…
Thank you for this article. Sometimes it is easy to forget just how lucky I am, and what could have been if only I had been born elsewhere.
Or you could just read Malcolm Gladwell’s Outliers, which picks apart the potential success rate based on the date and time you are born and is a pretty amazing eye-opener.
What about my grandparents who moved here from Ireland? They greatly affected my “lottery” outcome. It seems like hard work not luck. It was just hard work performed over 100 years ago by my family.
#14 Bill, I agree. My mother came over from Ireland in the 50s as a 21 year-old. Where she was from was all farm land and fishing on the Atlantic. They didn’t even get electricity in the part of the county until 1969, something that as a kid myself at that time I took for granted over here. I feel fortunate to live in the USA where there is so much to be thankful for and so many opportunities.
“How you take birth in this life depends not on the choice given to you before your birth but on your actions and deeds in your previous life”.
This is a saying from my religion. This is the main essense of the word “KARMA”.
Based on the above quote, if you had done good deeds and lived a great and good life previously then you will be born into a good life and have a good life. If everybody were given a choice to choose his or her life then I am sure most of them want to be Bill Gates or Warren Buffet, but alas there is only one of them in this life.
RE: “We live better than most people, and even better than Americans from 20 years ago, who didn’t have the Internet, email, cell phones, iPods, GPS devices, and SpongeBob, not to mention scores of medical and pharmaceutical advances.”
I’m not convinced that all of the things in that list truly help us “live better,” even if they are fun diversions. 🙂
This is a great reminder to always be greatful and thankful. thanx jd.
@#14 & #15: I think that is the point. That no matter what/where/to whom you were born, we are all essentially the same.
I have seen many kids born priveleged that never make anything of themselves; and I have seen many disadvantaged kids build great lives for themselves. It’s what you do with yourself that matters.
I absolutely love this post. The end point has been covered countless times by other people – the fact that if you have you health, food, water, and a home….you are very lucky.
But just the way he phrased it all, it really reemphasized the point very well. Nearly everybody who can spend leisure time reading a blog as opposed to fighting just to survive should feel pretty lucky.
I agree that gratitude is in short-supply among many Americans who focus on becoming richer, or shoring up their 401Ks. Being grateful is something I need to remind myself of periodically. Most Americans are richer than the vast majority of the world. But like others, I don’t think too much of the consumer stuff we’ve acquired over the past twenty years. Our schools, bridges and roads are falling apart. Real wages are in decline and education (which is different from schools) has also declined. Despite many wonderful people in the country, the culture has become a coarser, nastier, consumer-driven society over the past twenty years. Perhaps if we realize how rich we are and are grateful for it, we will start spending more wisely and in ways which enrich the health and welfare of all our citizens.
This post was a great way to start my gloomy morning here on the east coast. I too, am guilty of not always being grateful.
After reading this I feel like I should add a part to my monthy money meeting with my husband to take some time to appreciate and be grateful for all we have. Or is that too off topic for a money meeting?
Thank you for such a positive post 🙂
Several years ago, while feeling really sorry for myself and feeling like I ‘belonged’ in a different part of the city, like I ‘deserved’ to be living a different lifestyle, I saw a woman standing at the bus stop, snow up to her knees, in a coat that didn’t look warm enough for the weather, no scarf or gloves. At that very moment, I realized how lucky I was!
I’m thankful for that day, because I made a decision at that moment to be thankful for everything I have! I had been so blinded by consumerism and what I didn’t ‘have’, I couldn’t see what I DID have.
I may not live in the posh part of town or wear designer clothes, but you know what, my daughter and I have everything we could possibly need and most of what we want (within reason). How could I not be grateful for that?
Ever since that day, my life has turned around drastically!! I am happy and fulfilled and not filling my life with ‘stuff’ just to keep up with the Jone’s anymore. My outlook is what was keeping me down and unsatisfied.
Now I’m thrilled to have a paid off 6 yr old car (that I paid off early), a tiny little house that’s all mine (not even close to a posh neighborhood, LOL), no CC bills, 10% going into my 401K (how many other single mom’s on a small income can say that!), $100 a month into a high yield savings account (with investments outside my 401K coming soon!), food on the table, new (non-designer) clothes, and a realistic outlook on life! 🙂
I am grateful and realize how lucky I am. I think of life for females before guns, when men rules the world with swords and muscle and I’m happy to be ‘civilized’.
But while I agree we all need to keep in mind how much of our lives is due to chance, I think too many people seem to focus on it. Why bother meditating about things outside your influence? To me it’s much like people who spend their lives looking back and thinking ‘if only’. They make this alternate reality in their heads where everything would be better. ‘If only’ I had/had’t bought that house/invested in that stock/taken that job. It’s the same thing with who/what you are: ‘If only’ my parents had put more emphasis on education. ‘If only’ I’d graduated from that super-duper school. ‘If only’ my body were taller and stronger. To me part of gratitude is not just acknowledging your blessings but coming to terms with them.
Part of my problem is I know too many people who ‘won life’s lottery’ who don’t feel gratitude, they feel guilt. It’s almost a form of survivor’s guilt: “Why me? I’m not special. I don’t deserve [fill in the blank].” I used to fall into that trap until I realized that I don’t begrudge people their food fortune, so I won’t begrudge my own.
And since this topic can actually devolve quickly into a political discussion (I’ve already seen how many references to universal health care?) I would just point out that my version of helping those that haven’t been as fortunate is to do what I can to change the situation and let them do for themselves, ‘teach a man to fish’ philosophy. Giving people things sounds nice, and sometimes direct charity is the only way, but those systems can quickly become endless handouts.
And finally, there isn’t much to be done about what era one is born in. Warren Buffett might have been lunch once upon a time, but that has what to do with our reality? We can only live in the present. And perhaps Warren would have surprised people. How many powerful people through history were physically slow but mentally cunning? He might have done just fine.
And that’s the ultimate point, isn’t it? We don’t KNOW how things would be different. Had you just bought that lottery ticket you might have been really rich and super happy, or you might have wound up alone, hedonistic, and completely unsatisfied with your life. The same is true if you had been born in a different time/place. You might have done just fine, but you’ll never know. So focus on making the best of your situation and doing what good you can for those that haven’t been able to.
@#14Bill: The point Warren Buffet is trying to make is that YOU had nothing to do with whether or not your grandparents worked hard for your success.
No one chooses to be born into a set of disadvantages. That is where the luck of the draw comes in. Of course, it is then up to each individual to choose if/how they will use whatever advantages they do have, and if/how they will overcome any disadvantages.
@#20Marco:
“Nearly everybody who can spend leisure time reading a blog as opposed to fighting just to survive should feel pretty lucky.”
Very well stated!! As far as the majority of the world that is not reading self-help blogs, we may as well be arguing about whose silver spoon is the shiniest.
After a depressing day at work yesterday – this was a great pick me up. I was lucky to be born in this country in these times. An attitude of gratitude always helps. Now it is up to me to be grateful for the situation I find myself in and work hard to make it into what I dream.
The danger comes, at all levels, when you realize that by luck you were landed in a less than optimal situation. Depression sets in when you bemoan the fact and let it rule you. Action to change the fact will improve the attitude. At least, when feeling I am feeling down, I try to get up and act.
“Chances are, you’re not worth as much as you were a year ago”
How long ago was this article written? One year ago the stock market was at it’s lowest point… I don’t know about the author, but I know my net worth has gone up significantly since then.
It’s good to be reminded to be thankful…the first step to where I am today started with what parents I had. I think I was placed well. 🙂
RE: We live better than most people, and even better than Americans from 20 years ago, who didn’t have the Internet, email, cell phones, iPods, GPS devices, and SpongeBob, not to mention scores of medical and pharmaceutical advances.
I was living here 20 years ago and perfectly happy without all this junk. It doesnt enhance my life-just fills it up and eats my money. Mostly it doesnt work that well eithe-junk tech. PIck a different example please.
@Steve (#27)
Yeah, Robert caught that error, but we didn’t get it fixed before you commented! 🙂
There appears to be an assumption that births are distributed and chosen randomly. This is not the case.
For example, a child with two European parents has a very small chance of being Chinese. Under the logic presented here, one would assume any child born has a high chance of being Chinese.
Your place in life is not randomly chosen for you, but passed down by the hard work your parents and grandparents. I am hesitant to buy this fact that my place in life is based on luck. This is simply not true. It is the product of those who came before me, and it is my responsibility to pass this good lifestyle on to my children.
I am not the product of a lottery–a pretty offensive and simple minded conclusion–I am the product of my parent’s dedication and hard work.
Perhaps someone here can help clarify what is meant by the article, or what I am not seeing.
Much thanks.
@JD – Enjoy Buffet’s letters. I did this once in college and learned a lot.
I’m amazed at how well of a writer he is. He can turn a very complex subject into an argument about the price of cheeseburgers.
I would agree with some of the other comments about the social welfare system and how it is connected to Buffett’s comments.
This really comes back to John Rawl’s “Veil of Ignorance,”an which he argues that we should conduct social policy like Buffett’s lottery – you don’t know what challenges you will face in your life due to the circumstances of your birth, so it should be in your interests to advocate for policies that will protect you in the worst of situations – disability, medical problems, poor upbringing, etc.
This seems to be a key element that not all of the wealthy in the United States have not grasped – to become wealthy in the U.S. requires that a lot of conditions are met for the individual, i.e. you had access to education, didn’t have serious medical problems, and you got lucky to some extent. In the debate health care, public education, taxes, etc. there seems to be a large group of people who don’t at all realize how lucky they are to have had the opportunities that allowed them to excel, and DEFINITELY don’t realize how poorly the U.S. guarantees those opportunities, in comparison with other countries (and not even just industrialized ones). And every tax cut that is supported through allegations that the government can’t be trusted, or that it’s “your money” to do with what you like, completely undermines progress on that issue.
The main takeaway here? The second-richest man in the country is saying that we need more social spending and more taxes. Doesn’t that tell you something?
Your only happy if you rank #1 within your circle of friends/family
If everyone around you make the same as you do, we usually feel mediocre
F*** luck! If you have a great personality and work your ass off you will win in life.
not just a writer– he’s also apparently a great singer…
Re: the IPad… it does sound like you bought it a little too soon for comfort. That’s ok, you have monetary wiggle room for mistakes. Unless you can cancel the order, it’s a sunk cost and you should just take the lesson (the item won’t be going away, so wait until you don’t feel you need to justify the purchase) and stop worrying about it. Or maybe you really did need to replace a laptop ASAP and this was the best choice, in that case it was bad timing on needing a replacement but the purchase is still justified. I did hear good things about it on NPR yesterday or the day before. In a month (after you’ve figured it all out) I’d like to see a post on the subject!
I think some people may be thinking too scientifically about the argument that births are random. I think the argument in the article is more philosophical. For instance, consider that you consist more of your spirit than your actual physical body. Your spirit could have ended up in any person anywhere in the world. At least that’s how I interpreted it.
I bookmarked 5 of his links. That alone makes the article invaluable.
I have nothing to add. I just want to thank you for a great blog and how much I enjoy spending time here.
@Dan #31
The whole point of the argument is that to whom you are born IS the luck of the draw. If you chose 1 person from anywhere on earth, he/she would have the theoretical same chance of being born to “your” parents.
That your family has worked hard over the years to give you a good life is the “lucky” part.
Ever since I read “Outliers”, I have thought about how lucky I have been in life, and how to use that luck to my advantage. Sometimes, it gets easy to feel unlucky when all we see on tv are super successful people.
It’s hardly a lottery. I’m no more lucky to be born American than I am lucky to be born human. How many animals are born every day compared to people, do I count myself lucky not to be born one of them? Given that my parents were American, there were pretty certain odds that I’d be born American. If someone (obviously not me, since I wasn’t born yet) were to come to my mother 24 hours before I was born, and say “I hope your child is born American, there’s only a 5% chance of that!” he would have drawn (rightly so) some ridiculous looks.
Sure, I could have been born to different parents in a different country, but then I wouldn’t be me, I’d be somebody else entirely. I could have only been born to my parents, which means that I had no other choice but to be American. I could have been born an ostrich, too, by that logic.
Besides, even if I do count myself lucky to be me, I don’t see what that gets me. I’m me regardless of the level of luck it took for that to happen.
I don’t believe in rebirth. I don’t believe in heaven or hell. I don’t think there is a “great accountant in the sky” tallying up everyone’s good deeds and sins. Whatever there is – is right here. When we do good, we create heaven around us. When we do bad things, we create hell in our own neighborhood. Every time I see homes with bars on the windows and doors, I see hell on earth.
I think Warren Buffet would agree with me – We, as a society, need to improve the situation on a daily basis. Be it by channeling our money (through taxes or donations) or by channeling our actions, we need to help others and help ourselves make this planet a paradise. Yes, there are many disincentives along the way (and I am as guilty of taking those disincentives as anyone else) but improving the lives of everyone should be a goal in our lives. We should count our blessings and act towards earning a few more…
Great description of Rawls’ contributions to political philosophy:
Original position reflects “what principles of justice would be manifest in a society premised on free and fair cooperation between citizens, including respect for liberty, and an interest in reciprocity.”
Those rules are arrived at behind the “veil of ignorance” – i.e., that you don’t know which lotto ball you will get.
The result: the rules should help the worst off before benefiting others.
However, his second book says that this only applies to, essentially, western democracies. I.e., You don’t need rules to help someone who’s worse off in Africa, just in America.
But Thomas Nagel says there shouldn’t be a boarder and if you have $200 you should donate it an save a life instead of getting a 52 vs. 42 inch TV.
Luck is often underrated as a factor in life. Buffett is completely right on. Good for him for understanding the big picture. There are far too many who don’t get it.
Who’s SpongeBob?
I think the only thing missing from this discussion is the fact that many people have all of these things going for them and still do poorly in life. You could chalk that up to some random aspect of their personality that existed the moment they were born (and having kids, you can definitely see early traits that bear out over time). But many people make their own luck through ridiculously hard work. I don’t know that I’d say that focus on work was evident the day someone is born.
Reading Buffett is something that everyone that puts money in the markets (which ideally would be a majority of people), should read. Even if you don’t, he makes things very simple.
I like the idea of setting policy without knowing which ball is going to be yours, but the reality is policy is set by massive self interest. In California, Buffett noted one time that Prop 13 was completely ridiculous in that someone like him that owned a $4 million plus house would only pay $4,000 in taxes (since he owned for a long time) while his neighbor that bought recently with a house half as expensive could pay $20,000. If you used the ball theory, you’d say that was unfair and the taxes should be equal. Buffett was told to shut up. The world operates on the basis of self-interest.
@ #16:
“if you had done good deeds and lived a great and good life previously then you will be born into a good life and have a good life”
Does this not imply that since most people are not born into a good life nor do they have a good life, that most people did bad deeds and lived a bad life previously??? Seems pretty dark and accusatory… unless the point is that everyone can have a good life next time – if they will just live a better life this time around?
So, behavior in the world creates the world’s destiny, and the poor in this life got what they deserved based on behavior in past lives? This seems hard to believe as a religious truth.
Heck, nowadays in America we don’t seem to take responsibility for our actions in this life, much less in previous lives. 🙂
I am deeply grateful for the ball I drew i.e living in the US, healthy (at least until the reform begins) etc.
My problem with Buffett is that he seems to think that the way to correct the situation for people with the bad balls is to take a good ball from someone else. This is problematic as many of us apply a great deal of elbow grease together with our ball. Why not create a system that provides freedom and opportunity for everyone regardless of their ball?
So what’s the point, we should stop evolution in it’s tracks?
In my life, I have had to work hard and sacrifice at every step in order to get a college education, get a good job, and own my own home.
And I know in my heart that I am a lucky bastard.
Because I also know that most people in the world don’t have that opportunity. Even today, in 2010, the opportunity to work hard and sacrifice, in a way that makes a material difference to your well-being, is a privilege that is limited to the few. I’ve been given opportunities that even many Americans don’t see in their lives — not to mention the rest of the world.
I don’t like the argument that since we’re richer than most people, that we should be happy about it. To me that implies that if I found myself poorer than most people, I should be unhappy. Wouldn’t it be better to be able to be happy even if everybody were richer, but my needs were met?
Love my balls and would not trade them for the world 😉
No question that it’s a bit morally skewed to be born in an industrialized nation and go on and on about how lucky we are and therefore how happy we should be. But the world’s realities are pretty harsh. If you have a specific, sheltered place to sleep, uncontaminated drinking water available in that shelter, and a refrigerator for preserving food, then your living standard is better than 75% of the world. Add 6 years of education and you’re better off than 91% of the world.
Without question, a sense of gratitude is absolutely basic to leading a happy life. Whether we use that sense of gratitude as warm snuggly blanket or as a spur of motivation to help others will make the difference between leading a life that will make others happy or not. What historical legacy are we leaving? In the digital age, someone’s going to know more about us than we’ve known about all those who went before us.
After living in Asia and traveling the world, I can assure you I have won the birth lottery. We have been approached by people to take their children to the US for the opportunity. We have had people ask if we would sponsor them to come to the US- they would do anything to get in and start. We had maids in both Asia and Africa with college degrees who were thrilled to be paid maid wages and treated well….
If you question Buffet’s theory, you need to travel more(and not just to the posh spots)!
It gives you a real sense what it means to be a member of the US or Canada and how very lucky that somehow our personalities made it to these shores (sorry- haven’t really lived in Europe- so I cannot judge that one).
If you are so inclined and want to know “where” you are, copy this link and all will be revealed .
http://www.globalrichlist.com/
Hi Robert,
nice article! who knows how many human talent is in some country where can not really develop, I’m pretty sure the new “Albert Einstein or Warren Buffett” is lost in some third world village trying to survive.
It’s a shame that with all the resources we have nowadays a big part of our still lives in extreme poverty.
http://www.growingrich.net/
Best regards,
Javier
I agree with Jan @#53. Being an Indian woman who was born there but grew up in the UK, believe me, I lucked out moving here and am consciously grateful every day. In India everyone pities me for being single….they forget I make a good salary which I control-something 99.9% of Indian women DONT do. My mother also tells me that despite being shunned as a potential wife in my youth due to being excessively independent and wanting a CAREER, now guys are lining up. But all they want is to use me as a ticket to life in the US. Ironic, and no, I am not interested in any of them.
I might ask for another draw of the lottery but only if it was to live here.
Great focus on gratitude. Too often we focus on the negative aspects of life, which in turn shows up in our results of life. When we focus on the good we have, we pay more attention to the opportunities that surround us every day. Thanks for a great post!
@#19 – that is plainly true – a lot depends on what you do with what you’re born with/given. However, I know people who were born into very good (financial) circumstances and have made nothing of themselves, but because of those good circumstances, can get away with it. Those same character traits of a person born into lesser circumstances can lead to jail.
I’d never know Buffett was such a philosopher. I feel more worldly and learned already.
I wonder if Buffett would be as revered as he is if instead of making billions by investing and making money grow, he had tought the world governments tips on budgeting and made the massive debt shrink.
Some food for thought.
Cheers
The U.S. economy is scary at the moment. I worry about losing my job, and my wife hers; and we hope we keep one. A few weeks ago, I heard the story of a Haitian “microbusiness” entrepreneur on the Planet Money podcast. Basically, a wholesaler of sundry goods she could carry in a basket. The interview made the point that her handling of cash flow and debt was quite sophisticated. I was impressed by her resourcefulness. Similarly, this post reminds me of the opportunity in the U.S. economy even while hard-luck stories fill the news.
I found Buffett’s comments on our luck in getting the ball we got (American) very interesting.
Just to add a little humor to the topic:
http://www.thedailyshow.com/watch/thu-september-14-2006/john-oliver-s-journey–don-t-stop-believing
Don’t stop believing!
What Buffett calls “the ovarian lottery” is a direct ripoff of Rawls “veil of ignorance”. Did Buffett steal this without even a reference to Rawls?
Also, I don’t see what gratitude has to do with you being born into a rich society. Gratitude to whom???
I am glad that I was not born in Zimbabwe but I have nobody to thank for this random event, and I don’t see why I should be satisfied with not being among the poorest people in the world. That attitude does not promote further development.
Instead I aim to get ahead while doing my tiny little part for the world’s poor, by promoting capitalism and freedom in the world.
The 100 ball choice comes across as “If you had the option to pick between 100 alternate lives, and then kill yourself, would you?”
Without continuity of consciousness and memory, it’s effectively asking you if you are suicidal. With continuity of consciousness and memory, it’s the abandonment of everyone you care about, plus the effective murder of someone else.
Bill Gates’s comment is amusing, but I find it more interesting that as recently as about three hundred years ago, Buffett’s skills would have gone unvalued, and five or six hundred years ago they would’ve actually been considered unnatural and sinful.
Even more disturbing, I think, are the skills that’ve dropped out of favor in our time. Before the 19th century, it was possible to make a sensible, respectable wage as a musician working for a nobleman, church, or university. Nowadays, going into music is likely to make you a career waiter. It really disturbs me that, somewhere out there, there could be another J.S. Bach working as a doctor or lawyer because music isn’t a safe enough career prospect.
Ovarian Lottery is a true concept. It is the biggest lottery in Life- In which family and in which country you are born?
I am born in India in a middle class family. Add to it my elder brother and father has a mood swing and impulsive issues.
It is a struggle. India is one of the most horrible countries in the world with bomb blast, traffic, pollution, population etc.
Now India is growing at 8%-9% p.a and hence some optimism in the country prevails.
I wish i was born in UK/US/Canada/Australia/New Zealand/Developed Europe. I am smart,talented, educated but as i dont have any car, i have to travel in worlds most dirty buses in India.
My friends who are born in Industrialist, business families are enjoying their life because they dont have to find any job.
I will work very hard in my profession, i will migrate to middle east for better savings and will rise in my career and life. Marriage and having kids thus increasing population is out of question.
Can someone help me on the math?
A one in twenty chance being born in US.
A one in two chance being above average intelligence.
That comes out to 2 1/2%, not a 1% chance according to my math.
But of course you’re probably laughing as you’re reading, “this guy must be in the below intelligence category”:>)
That there is a lottery of birth does not excuse everything. Finance has become a Pandora’s box and should question itself. That or end up destroying itself.
Like most of the other commentators here – it all comes down to being grateful. I want to stress that being rich isn’t necessarily the road to happiness. The question is quality of life – and I believe very few people in the West have a quality of life. I base this belief on the high levels of depression, suicide and mental illness in the West and parts of Eastern Europe in comparison to poorer, but happier, nations. Being grateful is key, as too going out of your way to help others.
Bill gates came from a wealthy family and was pretty much told by his parents that should he fail with microsoft, they would pay for him to go back to harvard. This idea bill gates came from nothing is completely idiotic. Moreover, he did not program DOS or windows.
I really love the way Warren thinks about being lucky in life. This really inspires me to go on! We’re so lucky to have internet and time, we’re able to do anything! Thank you for sharing this with the world!