Collection: Warren Buffett - #118 'Don't Predict The Market'


Video Link: https://youtu.be/6cxMG8vIidk


In this episode, Warren Buffett was asked on Ben Graham’s book, “The Intelligent Investor,” he spends the first couple of chapters discussing the level of the market and whether it was safe for investment so what you think of the market today(1999) ?


In this episode, you’ll learn:

  • Why Warren Buffett don't predict the market.

  • What is a stock.

  • When should you buy a stock.

To check out all Collection: Warren Buffett <click here>

[Transcript]

(Source: https://buffett.cnbc.com/video/1999/05/03/morning-session---1999-berkshire-hathaway-annual-meeting.html)

~ Please visit the site above for full video of Berkshire Hathaway Annual Meeting.

AUDIENCE MEMBER 00:08

My name is Tim Spear (PH). And I’m from Hertfordshire, England.


I was thinking in Ben Graham’s book, “The Intelligent Investor,” he spends the first couple of chapters discussing the level of the market and whether it was safe for investment. I was wondering what you think of the market today?


WARREN BUFFETT 00:26

Well, we don’t — Charlie and I don’t think about the market. And Ben didn’t very much. I think he made a mistake to occasionally try and place a value on it.


We look at individual businesses. And we don’t think of stocks as little items that wiggle around on the paper and that have charts attached to them. We think of them as parts of businesses.


And it is true that, currently, we have great trouble finding businesses that we both like and where we like the management and that they — and find them at an attractive price.


So, we do not find bargains in this market among the larger companies that are our universe.


That is not a stock market forecast in any way, shape, or form. We have no idea whether the market is going to go up today, or next week, or next month, or next year.


We do know that we will only buy things that we think make sense, in terms of the value that we receive for Berkshire. And when we can’t find things, the money piles up. And when we find — when we do find things, we pile in.


But the stock market — I know of no one that has been successful at — and really made a lot of money predicting the actions of the market itself. I know a lot of people who have done well picking businesses and buying them at sensible prices. And that’s what we’re hoping to do. Charlie?


CHARLIE MUNGER 01:59

How could you say it any better? (Laughter)


WARREN BUFFETT 02:02

Yeah, but the question is whether you can say it better, Charlie. (Laughter)


OK, we’ll go to zone 2. That may be all you hear from him today. (Laughter)


Get used to it.

  • Facebook Social Icon
  • YouTube

Like & Follow YAPSS social media page to get notify on the latest update.

Disclaimers: YAPSS/YAPSS.com is not managed by a registered investment advisor or a broker/dealer. Information from YAPSS/YAPSS.com and any content posted by YAPSS/YAPSS.com is for entertainment & education purposes only and not a buy or sell of security recommendation. In no event shall YAPSS/YAPSS.com be liable to any damages arising out from the use of YAPSS/YAPSS.com content or material published or available on YAPSS/YAPSS.com. Lastly, YAPSS/YAPSS.com is in no way guaranteed for accuracy or completeness of published information and hence, please do your own due diligence.

©2020 by YAPSS. All Right Reserved.