We will continue to ignore political and economic forecasts, which are an expensive distraction for many investors and _x000D_ businessmen. Thirty years ago, no one could have foreseen the huge expansion of the Vietnam War, wage and price controls, two oil shocks, the resignation of a president, the dissolution of the Soviet Union, a one-day drop in the Dow of 508 points, or treasury bill yields fluctuating between 2.8% and 17.4%.
Interpretation
Investment decisions should not be swayed by unpredictable external events.
Warren Buffett emphasizes the idea that investors should focus on their own analysis and judgment rather than being distracted by external forecasts and unpredictable events in politics and economics. He notes the many unforeseen occurrences in the past that have impacted the market, suggesting that simply following predictions is often futile.
In practice
During a financial workshop to illustrate the importance of long-term investment 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.
One’s objective should be to get it right, get it quick, get it out and get it over. Your problem won’t improve with age.
Advice? I don't offer advice. Not my business. Your life is what you make it.
Sin forsaken is one of the best evidences of sin forgiven.
Here is a new spiritual practice for you: don't take your thoughts too seriously.
We have this myth that extroverts are better salespeople. As a result, extroverts are more likely to enter sales; extroverts are more likely to get promoted in sales jobs. But if you look at the correlation between extroversion and actual sales performance - that is, how many times the cash register actually rings - the correlation's almost zero.
Maybe that's why God made us kids first and built us close to the ground, because He knows you got to fall down a lot and bleed a lot before you learn that one simple lesson. You pay for what you get, you own what you pay for... and sooner or later whatever you own comes back home to you.
Transform our way of perceiving things, we transform the quality of our lives.
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