warren buffett's investing lesson number 1!

Guys,

I just pulled out few lines from here and there to post this up and share it with everyone.

Long term shareholders like me and many of you here have been damaged both mentally and financially on this stock. However, reading through the many posts from this forum lately, I have realized most of the conversations based on very short term strategy or very recent events which will only take the weak holders off their focus and the reasons why they even invest in this company in the first place.


"The first thing people learn from Warren, of course, is how to think about investing. That’s natural, given his amazing track record. Unfortunately, that’s where a lot of people stop, and they miss out on the fact that he has a whole framework for business thinking that is very powerful. For example, he talks about looking for a company’s moat—its competitive advantage—and whether the moat is shrinking or growing. He says a shareholder has to act as if he owns the entire business, looking at the future profit stream and deciding what it’s worth."

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And you have to be willing to ignore the market rather than follow it, because you want to take advantage of the market’s mistakes—the companies that have been underpriced.

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"Instead he started asking big questions about the fundamentals of our business. “Why can’t IBM do what Microsoft does? Why has Microsoft been so profitable?” That’s when I realized he thought about business in a much more profound way than I’d given him credit for."

The last paragraph, let me translate it into what i perceive = what can't other rare earth producers/ supplier do? what is Lynas do that make them different from the rest of them?

Hang in tough,