Tag: Value Investing

At the 2025 Berkshire Hathaway Annual Meeting, Warren Buffett reflected on his lifetime of market experience, underscoring the importance of investor temperament.

“When I was born in 1930, the Dow was 240, and soon after it dropped to 41,” Buffett recalled. “If being down 15% in the market upsets you, you need a different investment philosophy. The world isn’t going to adapt to you—you have to adapt to it.”

Buffett warned that extreme market swings are inevitable, predicting that within the next two decades investors will face turbulence more dramatic than most have seen before. He emphasized that while markets periodically deliver shocks, they remain fertile ground for disciplined investors.

“The market is a terrible place if you get frightened by declines or overly excited by gains,” he said. “You’ve got to check emotions at the door when you invest.”

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© 2026 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Warren Buffett, who has built one of the world’s great fortunes through a lifetime of investing, acknowledged at the 2025 Berkshire Hathaway Annual Meeting that not everyone needs to follow his path. While he has spent decades analyzing businesses and allocating capital, Buffett said he also respects a simpler approach.

“We don’t think it’s improper, actually, for people who are passive investors just to make a few simple investments, and sit for their life in them,” he remarked.

His comment reflects Buffett’s long-standing view that most individuals are better served by sticking with straightforward, low-cost investments—holding them patiently over time—rather than trying to outsmart the market.

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© 2025 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

At Berkshire Hathaway’s 2025 Annual Shareholder Meeting, Warren Buffett pushed back against the nonstop noise surrounding the stock market.

He reminded shareholders that, despite endless predictions from the press and analysts, no one truly knows where the market is headed in the short term. “Things get extraordinarily attractive very occasionally. The long-term trend is up. Nobody knows, and I certainly don’t know. Greg doesn’t know. Ajit doesn’t know. Nobody knows what the market is going to do tomorrow, next week, or next month,” Buffett said.

He noted that speculation about daily or weekly moves is popular because “it’s easy to talk about,” but ultimately, it adds no real value for investors. Instead, Buffett urged focusing on long-term fundamentals and being patient for rare opportunities.

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© 2026 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Warren Buffett has long cautioned investors against getting swept up in the excitement of trendy industries. At Berkshire Hathaway’s 2025 Annual Shareholder Meeting, Warren Buffett reminded investors that opportunities in the market don’t arrive on a predictable schedule. Investors may crave action, and that hurts them rather than helps them. Great opportunities are rare.

“The one problem with the investment business is that things don’t come along in an orderly fashion, and they never will,” Buffett said. Unlike businesses with steady, reliable returns, investing is about patience and timing.

He pointed out that over 80 years of trading—more than 16,000 market days—only a small fraction offered truly compelling opportunities. “It would be nice if every day you got four opportunities… but we’re not running that kind of business,” he explained.

Instead, Buffett stressed that investing is inherently opportunistic. Success comes not from daily activity, but from recognizing and seizing those rare, high-quality chances when they appear.

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© 2026 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Warren Buffett has long cautioned investors against getting swept up in the excitement of trendy industries. At Berkshire Hathaway’s 1999 annual meeting, he reminded shareholders that the value of money doesn’t depend on its source.

“A dollar earned from a horseshoe company is the same as a dollar earned from an internet company,” Buffett said. “It is not worth more, based on whether it comes from somebody named dot-com or the Old-Fashioned Horseshoe Company. The dollars are equal.”

His message: profits are profits, regardless of industry. Investors should focus on business fundamentals rather than chasing sectors simply because they are fashionable.

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© 2026 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Warren Buffett, widely regarded as Benjamin Graham’s most successful student, has often credited Graham’s book The Intelligent Investor as the foundation of his investing philosophy. At Berkshire Hathaway’s 1995 annual meeting, Buffett summed up Graham’s teachings into three timeless principles.

First, he emphasized the importance of maintaining the right attitude toward the stock market, as outlined in Chapter 8 of Graham’s book. “If you’ve got that attitude toward the market, you start ahead of 99 percent of all people,” Buffett noted.

Second, he highlighted the concept of a margin of safety — buying with a cushion to protect against errors or unforeseen risks — a principle he said applies far beyond investing.

Finally, Buffett urged investors to view stocks not as trading vehicles but as ownership in real businesses. Together, these principles form the bedrock of value investing and continue to guide Buffett’s approach today.

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© 2026 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Warren Buffett has long emphasized simplicity and discipline when evaluating potential investments. At Berkshire Hathaway’s 1995 annual meeting, he explained the two threshold questions he always asks before committing capital.

“The first question is, can I understand it?” Buffett said, noting that he avoids businesses outside his circle of competence, such as software or biotech. “There’s no sense kidding myself into thinking that I’m going to understand some software company … what the hell am I going to know about it?”

Once he clears that hurdle, Buffett turns to the second question: does the business have strong economics? Specifically, he looks for companies that consistently earn high returns on capital.

These two principles—understandability and solid economics—remain cornerstones of Buffett’s investing approach.

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© 2025 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

If you take a company that, in the end, never makes any money, but trades, changes hands, representing a valuation of $10 or $20 billion for some time, there’s no wealth created. There’s a tremendous amount of wealth transferred.

…but in the end the only wealth creation comes about through what the business creates.

There’s no magic to it. If a company that’s not worth anything sells for $20 billion and 5 percent of it changes hands, somebody takes a billion dollars from somebody else. But investors as whole gain nothing.

They all feel richer. It’s a very interesting phenomenon. But they can’t be richer, except as a group, unless the company makes them richer.

And it’s the same principle as a chain letter. If you’re very early on a chain letter you can make money. There’s no money created by chain letters. In fact, there’s the frictional cost of envelopes, and postage, and that sort of thing.

So the net, there’s some money destroyed a little bit. And there’s money destroyed by the frictional cost of trading and investing, and that comes out of investor’s pockets.

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© 2026 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Warren Buffett has emphasized that stock prices often diverge from a company’s true value during periods of heavy speculation, but ultimately align with fundamentals over time.

Speaking at Berkshire Hathaway’s 2000 annual meeting, Buffett cited his mentor Benjamin Graham’s observation from The Intelligent Investor: “In the short run it’s a voting machine, and in the long run it’s a weighing machine.”

Buffett added, “Sooner or later, the amount of cash that a business can disgorge in the future governs the value it has… But it can take a long time.”

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© 2026 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Warren Buffett has long cautioned investors about the dangers of leverage, the practice of using borrowed money to boost returns. While it may seem attractive, he warns it can quickly destroy even the most successful investors when markets shift.

“Whenever a bright person, a really bright person, goes broke that has a lot of money, it’s because of leverage,” Buffett told shareholders at Berkshire Hathaway’s 1999 annual meeting. “It would be almost impossible to go broke without borrowed money being in the equation.”

For Buffett, the lesson is clear: long-term success in investing comes from patience and discipline, not debt-fueled risk.

Hear Buffett’s full explanation

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© 2026 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.