If a business does well, the stock eventually follows.
Interpretation
A successful business will lead to an increase in its stock value over time.
Warren Buffett's quote emphasizes the direct relationship between the performance of a business and its stock price. When a company is managed effectively and demonstrates growth, its stock value typically rises as investors recognize its true worth. This reinforces the idea that the fundamentals of a business ultimately drive its long-term success in the market.
In practice
In a business seminar, to illustrate the importance of good management.
I have no views as to where it will be, but the one thing I can tell you is it won't do anything between now and then except look at you. Whereas, you know, Coca-Cola (KO) will be making money, and I think Wells Fargo (WFC) will be making a lot of money and there will be a lot - and it's a lot - it's a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that.
If the world couldn't see your results, would you rather be thought of as the world's greatest investor but in reality have the world's worst record? Or be thought of as the world's worst investor when you were actually the best?
Cash never makes us happy, but it's better to have the money burning a hole in Berkshire's pocket than resting comfortably in someone else's.
I think you should read everything you can. In my case, by the age of 10, I'd read every book in the Omaha public library about investing, some twice. _x000D_ You need to fill your mind with various competing thoughts and decide which make sense.
The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer.
Oneβs objective should be to get it right, get it quick, get it out and get it over. Your problem wonβt improve with age.
Once you know what you want and what is important for you to achieve, also define the values associated with it. What is important? That is something a lot of entrepreneurs pass by too quickly. For us, the things that were important were, No. 1, customer success. Nothing is more important to us than making sure every customer is successful in our service.
Work hard in silence, let success be your noise.
At the end of the day, if you're a professional athlete in track and field you are the CEO of your company.
Our premise is there are going to be a lot of winners. It's not winner take all. Other people do not have to lose for us to win.
The satisfaction to be derived from success in a great constructive enterprise is one of the most massive that life has to offer.
Certainly, I've never wanted to live on past achievements.
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