THE SEVEN PREDICTIONS OF WARREN BUFFET
1. Recessions can't be avoided forever. It is the nature of capitalism to periodically have recessions.
2. We'll survive current and future recessions just as we've survived past problems. We've got a wonderful economy... There's never been anything like that in the history of the world. We live seven times better than the people did a century ago
3. Recessions will create opportunities. Buy
4. All stocks won't be cheap. a successful investor is a predictor he predicts and waits for the right stock at the right price, and this doesn't happen every day
5. The crowd make mistakes. As Benjamin Graham wrote "You’re neither right nor wrong because other people agree with you. You’re right because your facts are right and your reasoning is right—and that’s the only thing that makes you right. And if your facts and reasoning are right, you don’t have to worry about anybody else."
6. Don't think falling prices are bad. "If they reduce the price of hamburgers at McDonald's today I feel terrific. Anything you're going to be buying in the future, you want to have it cheaper."
7. Good times will prompt bad decisions. Buffett compared the crowd that buys big when prices are high to Cinderella at the ball. "They know that overstaying the festivities - that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future - will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of the party. Therefore, the giddy participants all plan to leave just seconds before midnight.
1. Recessions can't be avoided forever. It is the nature of capitalism to periodically have recessions.
2. We'll survive current and future recessions just as we've survived past problems. We've got a wonderful economy... There's never been anything like that in the history of the world. We live seven times better than the people did a century ago
3. Recessions will create opportunities. Buy
4. All stocks won't be cheap. a successful investor is a predictor he predicts and waits for the right stock at the right price, and this doesn't happen every day
5. The crowd make mistakes. As Benjamin Graham wrote "You’re neither right nor wrong because other people agree with you. You’re right because your facts are right and your reasoning is right—and that’s the only thing that makes you right. And if your facts and reasoning are right, you don’t have to worry about anybody else."
6. Don't think falling prices are bad. "If they reduce the price of hamburgers at McDonald's today I feel terrific. Anything you're going to be buying in the future, you want to have it cheaper."
7. Good times will prompt bad decisions. Buffett compared the crowd that buys big when prices are high to Cinderella at the ball. "They know that overstaying the festivities - that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future - will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of the party. Therefore, the giddy participants all plan to leave just seconds before midnight.
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