It is easy for investors to get so wrapped up in a hot sector or company that they can lose sight of the fact that it in the end it is all about making money, and as Warren Buffett points out, a dollar from the hottest high tech company is no better than a dollar from a completely out of fashion industry.
“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,” Warren Buffett said at the 2002 Berkshire Hathaway Annual Meeting. “Now the question is, what are the economic characteristics of the internet company or the bank or the brick company that tell you how much cash they’re going to generate over long periods in the future.”
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© 2022 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.