valueandprices
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If you had a silver bullet and you could put it through the head of one competitor.

If you don’t know enough to know about the business instantly, you won’t know enough in a month or in two months. You have to have sort of the background of understanding and knowing what you do or don’t understand. That is the key. It is defining your circle of competence. Everybody has got a different […]

valueandprices
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To be a successful investor you need to know two things

To be a successful investor you need to know two things – How to Value a Business, and How to Think About Market Prices. Buffett wrote about this in his 1996 letter to shareholders. To invest successfully, you need not understand beta, efficient markets, modern portfolio theory, option pricing or emerging markets. You may, in fact, be better off knowing […]

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SPECULATION AND INSTABILITY

Instability of private investment arising out of the behaviour of speculators and ‘amateur’ investors on the stock markets, where they wish to get rich quickly. Speculators are not long-term investors. A professional long-term investor would make a careful calculation of the prospective yield of a capital asset before making up his mind about whether to […]