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More than two-thirds of Berkshire’s outperformance over the S&P was earned during down years.
“I would rather be vaguely right than precisely wrong.”
“Everyone talks about the big money made in real estate, but they forget to talk about the big money lost in real estate.”
While inflation is still undesirable, well-run businesses that employ relatively little capital, that throw off lots of cash and that have pricing flexibility will cope well with inflation.
“If investors only had to study the past, the richest people would be librarians.”
“Do what you enjoy the most. Work for people you admire. You can’t miss if you do that.”
The danger of relying on historical statistics or formulas is that you end up betting on a 14-year-old horse with a great record but is now ready for the glue factory.
“You don’t find out who’s been swimming naked until the tide goes out.”
“To think about what will happen versus when is a far more efficient way to behave.”
“It’s extraordinary how resistant some are to learning.” “Especially when it’s in their own interest to do so,”
“Most men would rather die than think. Many have.”
corporate stock buybacks add to shareholder value only if the purchases are made at prices below intrinsic business value. Pay above intrinsic business value and you hurt shareholder value.
“To buy number one on your list equally with number 37 strikes us as madness. Diversification is a protection against ignorance, a confession that you do not know the businesses you own.”
