Buffett noted that this illustrates why he pays so little attention to macroeconomic factors. Owning the right business is the key. Coca-Cola went public in 1919 at $40 per share. In 1920, the stock plunged to 19 ½ as sugar prices changed. After seven decades of wars, depression, etc. that initial $40 share would now be worth $1.8 million (About 16% compounded annually). It is far more fruitful to decide whether a product can sustain itself than make economic predictions.(30)
