Warren Buffett On Probabilistic InvestingRupert Hargreaves
Over the past seven decades, one basic principle has been at the core of Warren Buffett’s investing philosophy.
Buffett has been using basic elementary probability to evaluate potential investments as well as valuing insurance contracts for decades. As the future is uncertain, investors should always think in probabilities rather than guarantees as this is more reflective of the real world.
True subjective probabilistic thinking
The Oracle of Omaha told this to students of Wharton as part of a wide-ranging Q&A session on his investment strategy and thoughts about the economy in 2004.
When one student asked . . .
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