Warren Buffett, in his characteristic wisdom, emphasizes that investors need not dwell on a business’s past actions but should instead focus on its future endeavors. He understands that the past is not always a reliable predictor of a company’s trajectory. For Buffett, true investing lies in peering into the horizon, discerning the opportunities that lie ahead. As he aptly puts it, “That’s what investing is, is seeing out.”
“You don’t get paid for what’s already happened. You only get paid for what’s going to happen in the future,” Warren Buffett said at the 2007 Berkshire Hathaway Annual Meeting. “The past is only useful to you in the extent to which it gives you insights into the future, and sometimes the past doesn’t give you any insights into the future.”
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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.