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.
My definition of success is doing what you love. I feel many people do things because they feel they have to, and are hesitant to risk following their passion.
I find that the very things that I get criticized for, which is usually being different and just doing my own thing and just being original, is the very thing that's making me successful.
On a personal note, I think it won't be until after I've retired that I'm fully aware of what I've done or what I've gone on to achieve in my career.
It's not the cards that you have all the time that makes you a winner or a loser.
The best thing I ever did was when I was offered a million dollars to go play in South Africa and didn't take it. I was 21 years old, and part of it was like, 'Well, if they're offering me this obscene amount of money just to play one match, there must be something really wrong.'
Nobody ever remembers who finished second at anything.
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