Lessons From Warren Buffett

Lessons From Warren Buffett: There’s Nothing Magic About a One-Year Period

Since publicly traded companies report on a quarterly and annual basis it is easy to place a special importance on a company’s performance over those time periods. However, Warren Buffett points out that “there’s nothing magic about a one-year period.”

“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.

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