Buffett
warren buffett

Buffett on the trouble with stockmarkets

The very liquidity of stock markets causes people to focus on price action. If you buy an apartment house, if you buy a farm, if you buy a MacDonald’s franchise you don’t think about what it’s going sell for tomorrow or next week, or next month, you think about how is this business going to do. But stocks with this huge liquidity suck people in and they turn what should be an advantage into a disadvantage … You are focusing on the right thing if you look at the stream of income that an asset is going to produce over time.

Please follow and like us:
0

Leave a Reply

Your email address will not be published. Required fields are marked *

Enjoy this blog? Please spread the word :)