Although a bit dated this insight from Warren Buffett is brillant. It should be read by all investors.
Warren Buffett; Carol Loomis
December 10, 2001
(FORTUNE Magazine) – Two years ago, following a July 1999 speech by Warren Buffett, chairman of Berkshire Hathaway, on the stock market–a rare subject for him to discuss publicly–FORTUNE ran what he had to say under the title “Mr. Buffett on the Stock Market” (Nov. 22, 1999). His main points then concerned two consecutive and amazing periods that American investors had experienced, and his belief that returns from stocks were due to fall dramatically. Since the Dow Jones Industrial Average was 11194 when he gave his speech and recently was about 9900, no one yet has the goods to argue with him.
So where do we stand now–with the stock market seeming to reflect a dismal profit outlook, an unfamiliar war, and rattled consumer confidence? Who better to supply perspective on that question than Buffett?