“The Dow as an investment competitor is no pushover, and the great bulk of inves…

2015. január 21.

“The Dow as an investment competitor is no pushover, and the great bulk of investment funds in the country are going to have difficulty in bettering, or perhaps even matching, its performance. Our portfolio is very different from that of the Dow. …generally undervalued securities…"work-outs" …[and] "control" situations …
Conscious… of inflation, many people now feel that they are behaving in a conservative manner by buying blue chip securities…regardless of price-earnings ratios, dividend yields, etc….There is nothing at all conservative, in my opinion,
about speculating to just how high a multiplier a greedy and capricious public will put on earnings. …
You will not be right simply because a large number of people momentarily agree with you. You will not be right simply because important people agree with you. … You will be right, over the course of many transactions, if your hypotheses are correct, your facts are correct, and your reasoning is correct.
True conservatism is only possible through knowledge and reason.”

Quote: Warren Buffett Partnership Letter 1961

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