Comments on: A Classic Example of Why Discipline and Wealth Go Hand-in-Hand http://amarginofsafety.com/2014/03/13/a-classic-example-of-why-discipline-and-wealth-go-hand-in-hand/?utm_source=rss&utm_medium=rss&utm_campaign=a-classic-example-of-why-discipline-and-wealth-go-hand-in-hand "...to distill the secret of sound investment into three words..." Mon, 24 Aug 2015 14:39:02 +0000 hourly 1 http://wordpress.org/?v=3.2 By: Toucalit http://amarginofsafety.com/2014/03/13/a-classic-example-of-why-discipline-and-wealth-go-hand-in-hand/comment-page-1/#comment-12447 Toucalit Wed, 16 Apr 2014 22:10:34 +0000 http://amarginofsafety.com/?p=1626#comment-12447 Hi Ray, The above thought should be followed up by Warren Buffett's other strategy for overvalued markets, found in the following quote: “Our holdings, which I always believe to be on the conservative side compared to general portfolios, tend to be more conservative as the general market level rises. At all times, I attempt to have a portion of our portfolio in securities at least partially insulated from the behavior of the market and this portion should increase as the market rises.” Buffett Partnership, Ltd. July 22, 1961. page 1. In the overvalued market of 1969 the alternative was "...in securities..." "partially insulated from..." the market. This is in spite of the fact that Buffett was more specific about the term "securities". This same strategy was also outlined by Hetty Green who owned Hathaway Manufacturing Company before it merged with Berkshire which was later was acquired by Buffett. Green preceded Buffett by several decades but the strategy is clearly useful in any market. Regards. Hi Ray,

The above thought should be followed up by Warren Buffett’s other strategy for overvalued markets, found in the following quote:

“Our holdings, which I always believe to be on the conservative side compared to general portfolios, tend to be more conservative as the general market level rises. At all times, I attempt to have a portion of our portfolio in securities at least partially insulated from the behavior of the market and this portion should increase as the market rises.” Buffett Partnership, Ltd. July 22, 1961. page 1.

In the overvalued market of 1969 the alternative was “…in securities…” “partially insulated from…” the market. This is in spite of the fact that Buffett was more specific about the term “securities”.

This same strategy was also outlined by Hetty Green who owned Hathaway Manufacturing Company before it merged with Berkshire which was later was acquired by Buffett. Green preceded Buffett by several decades but the strategy is clearly useful in any market.

Regards.

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