Tuesday, December 8, 2015

Price declines and investor psychology

We ordinarily make no attempt to buy equities for anticipated favorable stock price behavior in the short term. In fact, if their business experience continues to satisfy us, we welcome lower market
prices of stocks we own as an opportunity to acquire even more of a good thing at a better price.”

[S]mile when you read a headline that says ‘Investors lose as market falls.’ Edit it in your mind to
‘Disinvestors lose as market falls but investors gain

We never take [one-year figures] very seriously. After all, why should the time required for a planet to circle the sun synchronize precisely with the time required for business actions to pay off

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