Warren Buffett
warren buffett

Warren Buffett

Warren buffett points out the absurdity of beta by observing that “a stock that has dropped very sharply compared to the market … becomes ‘riskier’ at the lower price than it was at the higher price”-that is how beta measures risk. ordinary investors can make those distinctions by thinking about consumer behavior and the way […]

On the fine line between investment and speculation:
warren buffett

Warren Buffett ( On the fine line between investment and speculation)

On the fine line between investment and speculation: “The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. On the fine line between investment and speculation Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, […]

valueandprices
warren buffett

Acceptable Use of Adjusted Financial Metrics by (Warren Buffett)

When companies report earnings, they have the option to report ‘adjusted earnings-per-share’, which generally backs out one-time expenses such as: Restructuring charges Severance packages One-time tax liabilities And other metrics that are perceived to impede comparability to previous fiscal years. Including adjusted earnings in shareholder reports is completely optional.  However, the proportion of companies who […]

valueandprices
warren buffett

Warren Buffett, Partnership Letter, 1967

“The evaluation of securities and businesses for investment purposes has always involved a mixture of qualitative and quantitative factors. At the one extreme, the analyst exclusively oriented to qualitative factors would say, “Buy the right company (with the right prospects, inherent industry conditions, management, etc.) and the price will take care of itself.” On the […]