Warren likes to look at stocks as owning a small piece of a business. This way he can judge whether he is paying too much for the business. He multiplies the stock price by the number of shares outstanding, then asks himself whether this would be a good deal or a bad deal if he were buying the whole business. If the price is too rich to be buying the whole business, then it is too rich to be buying even a single share. This thought alone can stop you from foolishly getting caught in the speculative frenzy
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Principle applies to things worth doing. If it’s not worth doing it all the way through or you wouldn’t want to do everything that’s required, then it’s not worth doing at all.
