Buffett quotes on Efficient Market Theory (EMT), The market is generally fairly efficient in evaluating asset classes, but not always efficient in valuing specific businesses. Source: BRK Annual Meeting 1999 ———————– [My experience] has given me a jaundiced view of academia generally. Efficient market theory—that everything is priced appropriately—is bunk. There’s a certain degree to […]
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Buffett quotes on stock valuation
How we value a business is what the game is all about. If you cannot value a business, you cannot value a stock. Source: BRK Annual Meeting 2001
Buffett Quotes on Good Business
1. Good businesses are difficult to knock off Snickers has been the #1 candy bar for the past 40 years. If you gave me $1 billion to knock off Snickers, I can’t do it. That’s the test of a good business. You don’t knock off Coke or Gilette. Richard Branson is a marketing genius. He […]
Why it is tough to short stocks
Buffett: Companies with a large short interest very often have been revealed as frauds or semi- frauds – not the one my friend runs. Over the years, I’ve probably had 100 ideas of things to short and I would have eventually been right [on almost all of them]. But [because it’s so hard to get […]
An IPO is like a negotiated transaction
Buffett: An IPO is like a negotiated transaction – the seller chooses when to come public – and it’s unlikely to be a time that’s favorable to you. So, by scanning 100 IPOs, you’re way less likely to find anything interesting than scanning an average group of 100 stocks. The seller of a $100,000 house […]