Often investors begin with an economic assumption and then go about selecting stocks that fit neatly within this grand design. Buffett considers this thinking foolish. First, no one has economic predictive powers any more than they have stock market predictive powers. Second, if you select stocks that will benefit only in a particular economic environment, you inevitably invite turnover and speculation. Whether you correctly predict the economy or not, you’ll find yourself continuously adjusting your portfolio to benefit in the next economic scenario. Buffett prefers to buy a business that has
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