Tag: Value Investing

Warren Buffett acknowledges that stock market prices can sometimes drift far from their underlying fundamentals. For him, these moments present both risks and opportunities.

“People get captivated simply by the notion of rising prices without going back to the underlying rationale,” Buffett said during the 1997 Berkshire Hathaway Annual Meeting. “That’s when you get very dangerous conditions in terms of possible bubbles.”

This disconnect isn’t limited to price surges. According to Buffett, market extremes occur both in booms and busts, driven by emotional reactions. “People behave in extreme ways in markets,” he observed. “And over time, that’s very good for people that keep their heads.”

Buffett’s advice? Stay grounded, focus on fundamentals, and take advantage of market misjudgments when others lose perspective.

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© 2025 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.

New businesses emerge constantly, reflecting the dynamic nature of the entrepreneurial world. However, for long-term investors like Warren Buffett, the focus is on businesses with high barriers to entry—features that protect them from being overwhelmed by competition.

At the 2012 Berkshire Hathaway Annual Meeting, Buffett emphasized the importance of these barriers. “There are some industries that are just never going to have barriers to entry,” he noted. “In those industries, you better be running very fast because there are a lot of other people…looking at what you’re doing and trying to figure out…what they can do a little bit better.”

In industries with low barriers, businesses must innovate and adapt quickly to stay ahead, making them less appealing for long-term investment. Buffett’s advice underscores the importance of choosing enterprises that are shielded from relentless competition.

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© 2025 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.

In a world where markets often promote constant activity, Warren Buffett stands out for his legendary patience. How long is he willing to wait for the right investment opportunity? As long as it takes.

Speaking at the 1998 Berkshire Hathaway Annual Meeting, Buffett explained his approach: “We wait indefinitely. We are not going to buy anything just to buy something. We will only buy something if we think we’re getting something attractive.”

For Buffett, patience isn’t passive—it’s strategic. “If the money piles up, the money piles up,” he said. “When we see something that makes sense, we’re willing to act very fast, very big. But we’re not willing to act on anything that doesn’t check out in our view.”

Buffett’s philosophy highlights the value of discipline in investing. “You don’t get paid for activity,” he noted. “You only get paid for being right.”

For investors, it’s a timeless lesson: patience often leads to better decisions and greater rewards.

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© 2025 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.

Is there a hidden formula for stock market success reserved for a select few? According to Warren Buffett, the answer is a resounding no. The legendary investor insists that the tools for success are readily available to anyone willing to put in the effort.

Buffett often points to Benjamin Graham’s classic book The Intelligent Investor as a prime example of accessible wisdom. His advice? “Read everything in sight.” At the 2005 Berkshire Hathaway Annual Meeting, Buffett dismissed the idea of insider knowledge, saying, “There are no secrets in this business that only the priesthood knows.”

He emphasized that investing is straightforward, with all the necessary information “out there in black and white.” For Buffett, the key lies in education and diligence—not exclusivity.

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© 2025 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.

The financial world is filled with constant noise—from Federal Reserve actions to trade developments and IMF forecasts. Yet, Warren Buffett, the legendary investor, pays no attention to headlines when making investment decisions.

“There’s always going to be good and bad news out there,” Buffett observed. Speaking at the 2012 Berkshire Hathaway Annual Meeting, he emphasized the importance of value over news cycles: “We look to value, and we don’t look to headlines at all. If we find a business that we think we understand, and we like the price at which it’s being offered, we buy it. And it doesn’t make any difference what the headlines are.”

For Buffett, short-term market chatter is irrelevant. His approach centers on understanding a business, evaluating its intrinsic value, and making decisions independent of external noise—a timeless lesson for investors.

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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.

Warren Buffett, the legendary investor, has long cautioned against two common investment pitfalls: misunderstanding one’s investment and using borrowed money to leverage it. Combining these mistakes, he warns, often leads to disastrous outcomes.

“Any time you combine ignorance and borrowed money, you can get some pretty interesting consequences,” Buffett remarked during the 1994 Berkshire Hathaway Annual Meeting. He highlighted the historical risks of excessive borrowing, noting that “the ability to borrow enormous amounts of money combined with a chance to get either very rich or very poor very quickly has historically been a recipe for trouble at some point.”

Buffett’s advice serves as a timeless reminder for investors to thoroughly understand their investments and approach leverage with extreme caution.

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© 2025 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, 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.

Gold is often touted as a reliable inflation hedge and a valuable investment, but should it be part of your portfolio? Legendary investor Warren Buffett remains skeptical, favoring productive assets like stocks over commodities such as gold.

In 2012, Buffett compared the performance of gold to Berkshire Hathaway, highlighting a stark contrast. When Berkshire was first acquired, gold was priced at $20 per ounce, while Berkshire shares were $15 each. By 2012, gold had risen to $1,600, but Berkshire’s A shares soared to $120,000. Nearly a decade later, gold stood at $1,798, while Berkshire shares surpassed $443,000.

For Buffett, the distinction lies in earning power. “It’s very hard for an unproductive investment to beat productive investments over any period of time,” he said at Berkshire Hathaway’s 2012 Annual Meeting. He predicted that over 50 years, not only would Berkshire outperform gold, but common stocks and even farmland would likely generate better returns.

Buffett’s insights suggest that productive, income-generating assets typically offer greater long-term growth than commodities that rely purely on price action.

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© 2025 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.

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.

Gold is often hailed as a reliable inflation hedge, but Warren Buffett has long challenged this view, emphasizing his preference for productive assets over non-productive ones like gold. Speaking at the 2005 Berkshire Hathaway Annual Meeting, Buffett highlighted why he believes gold’s utility as an investment is overrated.

“Historically, people saw gold as a refuge from declining currency value,” Buffett said. “But so is a barrel of oil, an acre of land, or a piece of Coca-Cola. Assets that serve a real purpose, like See’s Candy, will retain value regardless of the currency’s condition. If the dollar loses half its value, we’d simply sell See’s Candy for double the price and maintain the same real value.”

Buffett contrasted the tangible utility of productive businesses with gold, which he sees as speculative and lacking intrinsic value. Reflecting on his father’s enthusiasm for gold in the 1940s, Buffett noted that while gold prices rose from $35 an ounce to over $400 in 65 years, the compounded returns, after storage and insurance costs, were unimpressive.

For Buffett, the key lies in owning assets that produce goods or services people will always need, regardless of economic conditions. “We wouldn’t trade ownership of productive assets for a hunk of yellow metal,” he concluded.

Hear Buffett’s full explanation

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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.

Warren Buffett has spent years learning from the mistakes of others, especially in the financial world. Along with his long-time business partner, Charlie Munger, Buffett has become a dedicated student of human folly, particularly in finance.

At the 2012 Berkshire Hathaway Annual Meeting, Buffett shared his fascination with studying financial disasters. “I’ve always been absolutely absorbed with reading about disasters,” he said, highlighting how understanding human error, especially in finance, has given him a strategic advantage over others. Buffett believes that many highly intelligent individuals often overlook basic human behavior, which can lead to disastrous decisions, as was seen in the 2008 financial crisis.

Hear Buffett’s full explanation

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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.