We believe that according the name 'investors' to institutions that trade actively is like calling someone who repeatedly engages in one-night stands a 'romantic.'
Interpretation
Buffett critiques the term 'investor' for those who trade frequently, indicating that such behavior lacks true investment strategy or commitment.
Warren Buffett compares active traders to individuals who engage in one-night stands, suggesting that those who frequently buy and sell securities do not embody the qualities of true 'investors.' Instead of building lasting positions based on thoughtful analysis and a long-term perspective, these active traders are more concerned with short-term gains and market fluctuations. This analogy highlights the difference between genuine investing, which involves patience and strategy, and mere speculation that lacks substance.
In practice
In a finance seminar discussing the importance of long-term investing strategies.
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.
Your most expensive advice is the free advice you receive from your financially struggling friends and relatives.
I think a very good system in a world with a lot of passive investors is one in which there are at least a few entrepreneurial investors, prepared to say what they think, prepared to propose a change in management, change in strategy, change in cost structure, capital structure.
There is no more reason to believe that Bitcoin will stand the test of time than that governments will protect the value of government-created money, although Bitcoin is newer, and we always look at babies with hope.
A mortgage casts a shadow on the sunniest field.
Have rational expectations for future returns and avoid changing those expectations in response to the ephemeral noise coming from Wall Street.
All the time and effort people devote to picking the right fund, the hot hand, the great manager have, in most cases, led to no advantage.
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