Since publicly traded companies report their performance on a quarterly and annual basis, it may be tempting to assign a special significance to their results during those periods. Nevertheless, Warren Buffett argues that there is nothing particularly extraordinary about a one-year timeframe.
“The fact that the Earth revolves around the sun really is not totally connected to most business activities, or the fruition of most investment ideas, or anything of the sort,” Buffett said at the 2000 Berkshire Hathaway annual meeting. “We have to report every year, and, you know, I care about the yearly figures in that sense. I don’t really care about them, totally, as a measure of what we’re doing.”
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© 2023 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.