Daily Archives: September 8, 2010

The cover story of this week’s Barron’s is titled “What’s Ahead for Stocks” and it is accompanied by a cartoon of three strategists who are drawing curves on a white board (three different curves, I should add). The author, Kopin Tan, asks ten Wall Street strategists to predict what will happen to stocks in the near future based largely on their predictions of economic activity. It immediately brought to mind something Buffett once said:

“I’ve never made a dime predicting economic activity. We just try to buy businesses we understand at sensible prices.”[1]

Of course ignoring market prognosticators and buying good businesses at sensible prices is what all good value investors do.
Continue reading →

Share on Facebook