In the world of investing, it’s easy to get swept up in the excitement of hot sectors or trendy companies. But Warren Buffett reminds investors to stay focused on fundamentals: it’s not about where the money comes from—it’s about how much of it a business can generate over time.
“Whether the money comes from a bank, whether it comes from an internet company, or whether it comes from a brick company, the money all spends the same,” Buffett said at the 2002 Berkshire Hathaway Annual Meeting. What matters, he emphasized, are the economic characteristics that determine how much long-term cash a business can produce.
In other words, don’t chase trends. Focus on businesses with strong fundamentals and predictable cash flows—regardless of how fashionable they seem.
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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.