Notes 251Chapter 6- Janet Lowe, Warren Buffett Speaks (Hoboken, NJ: John Wiley & Sons, 2007),
p. 117. - Ibid., p. 193.
- CNN ( http://www.cnn.com/US/9710/18/goizueta.obit.9am/ ).
- In 2006, Buffett announced that he would be donating the bulk of his for-
tune to the Bill and Melinda Gates Foundation. Since Buffett ’ s fortune is in
Berkshire stock, his ownership percentage will slowly decline as he makes regu-
lar contributions to the foundation. - 2007 Forbes CEO Compensation Special Report, May 3, 2007: http://www.forbes.
com/lists/2007/12/lead_07ceos_CEO - Compensation_CompTotDisp.html.
Chapter 7- I am referring to the period during the Dutch Golden Age in the 1630s when
tulips reached extraordinarily high prices and suddenly collapsed. To illustrate
the irrationality, at the height of absurdity, tulip contract prices traded as much
as 20 times the annual income of a skilled craftsman. Fast forward to 1999. This
was a lot like valuing a revenueless, profitless Internet company for billions of
dollars. - Robert Hagstrom, The Warren Buffett Way (Hoboken, NJ: John Wiley & Sons,
2004). - Adam Smith, The Wealth of Nations (New York: Modern Library Edition/
Random House, 1994), p. 131.
Chapter 8- Geoff Colvin and Jessica Shambora, “J&J: Secrets of Success,” Fortune, May 4,
2009. - Mohnish Pabrai, “ Buffett Succeeds at Nothing, ” Motley Fool on Fool.com ,
October 30, 2002. Printed with permission from Mr. Pabrai and The Motley
Fool. - Value Line Investment Survey, November 28, 2008
- During 1997, Johnson & Johnson traded at between $ 24 and $ 34 a share (Value
Line Investment Survey). - Between 1929 and 1932, the Dow Jones declined nearly 89 percent from the
high to low points. In 1973, the bear market pulled the Standard & Poor ’ s
(S & P) 500 Index down by as much as 50 percent at one point. In 2008, the
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