For some investors, the rise of “meme stocks,” sky-high valuations on unprofitable companies, and other speculative behaviors signal a need to leave the market or adopt more conservative strategies. Warren Buffett, however, sees these trends as nothing new. Long before the meme stock era, Buffett observed speculation as a recurring part of the market, one that doesn’t influence his approach.
“We’re trying to find wonderful businesses,” Buffett remarked. “The fact that a part of the market is kind of screwy, that’s unimportant to us.” He and his partner Charlie Munger have seen countless cases of overpriced stocks, misleading promotions, and unsustainable promises. As Buffett said in 1996, “It always will go on. And it doesn’t make any difference to us.”
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© 2024 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.