It is Warren Buffett's practice to let companies inform him by their operating results, not by their short-term stock quotes, whether Berkshire's investments are successful.
He is convinced that although the stock market, in the short run, may ignore a business's financial results, it will, over time, confirm a company's success or failure at providing increased shareholder value.
Buffett remembers Ben Graham telling him that "in the short run, the market is a voting machine but inn the long run it is a weighting machine."
He is willing to be patient. In fact, as long as Berkshire's businesses are increasing shareholder value at a satisfactory rate, he would prefer that the stock market delay its recognition, thereby allowing him the opportunity to purchase more shares at bargain prices.
He is convinced that although the stock market, in the short run, may ignore a business's financial results, it will, over time, confirm a company's success or failure at providing increased shareholder value.
Buffett remembers Ben Graham telling him that "in the short run, the market is a voting machine but inn the long run it is a weighting machine."
He is willing to be patient. In fact, as long as Berkshire's businesses are increasing shareholder value at a satisfactory rate, he would prefer that the stock market delay its recognition, thereby allowing him the opportunity to purchase more shares at bargain prices.
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