Here’s a great excerpt from an interview that Warren Buffett did in India some years ago. Buffett is discussing how there is no easier game than stocks, but investors turn that fundamental advantage into a disadvantage saying:
Q2 hedge fund letters, conference, scoops etc
If you look at the typical stock on the New York Stock Exchange, its high will be, perhaps, for the last 12 months will be 150 percent of its low so they’re bobbing all over the place. All you have to do is sit there and wait until something is really attractive that you understand. And you can forget about everything else. That is a wonderful game to play in. There’s almost nothing where the game is stacked in your favor like the stock market.
What happens is people start listening to everybody talk on television or whatever it may be or read the paper, and they take what is a fundamental advantage and turn it into a disadvantage. There’s no easier game than stocks. You have to be sure you don’t play it too often.
You can watch the full interview here:
(Source: YouTube)
For more articles like this, check out our recent articles here.
Article by The Acquirer’s Multiple
