How Warren Buffett Keeps up with a Torrent of Information
A telling excerpt from an interview of Warren Buffett (below) on the value of reading.
Seems like he's taking the opposite approach to Nassim Taleb in some ways.
Interviewer: How do you keep up with all the media and information that goes on in our crazy world and in your world of Berkshire Hathaway? What's your media routine?
Warren Buffett: I read and read and read. I probably read five to six hours a day. I don't read as fast now as when I was younger. But I read five daily newspapers. I read a fair number of magazines. I read 10-Ks. I read annual reports. I read a lot of other things, too. I've always enjoyed reading. I love reading biographies, for example.
Interviewer: You process information very quickly.
Warren Buffett: I have filters in my mind. If somebody calls me about an investment in a business or an investment in securities, I usually know in two or three minutes whether I have an interest. I don't waste any time with the ones which I don't have an interest.
I always worry a little bit about even appearing rude because I can tell very, very, very quickly whether it's going to be something that will lead to something, or whether it's a half an hour or an hour or two hours of chatter.
What's interesting about these filters is that Buffett has consciously developed them as heuristics to allow for rapid processing. They allow him to move quickly with few mistakes — that's what heuristics are designed to do. Most of us are trying to get rid of our heuristics to reduce error but here is one of the smartest people alive and he's doing the opposite: he's creating these filters as a means for allowing for information processing. He's moving fast and in the right direction.