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“Balzac said that behind every great fortune lies a crime.1 That’s not true at Berkshire.”
“I will be talking about pricing stocks, but I will not be talking about predicting their course of action next month or next year. Valuing is not the same as predicting.
“In the short run, the market is a voting machine. In the long run, it’s a weighing machine.
Interest rates—the cost of borrowing—Buffett explained, are the price of “when.” They are to finance as gravity is to physics. As interest rates vary, the value of all financial assets—houses, stocks, bonds—changes,
Swinging his arms like an orchestra conductor, he succeeded in putting up another slide while explaining that, although innovation might lift the world out of poverty, people who invest in innovation historically have not been glad afterward.
lives. If you had seen at the time of the first cars how this country would develop in connection with autos, you would have said, ‘This is the place I must be.’ But of the two thousand companies, as of a few years ago, only three car companies survived.
Ultimately, the value of the stock market could only reflect the output of the economy.
a legendary book on the stock market, Where Are the Customers’ Yachts?
