Larger sums may be an advantage in some cases and a disadvantage in others.
Stocks of companies selling commodity-like products should come with a warning label: “Competition may prove hazardous to human wealth”.
I am not in the business of predicting general stock market of business fluctuations. If you think I can do this, or think it is essential to an investment program, you should not be in the partnership.
In the great majority of cases we simply do not know enough about the industry or company to come to sensible judgments-in that situation we pass.
Although we deal with probabilities and expectations, the actual results can deviate substantially from such expectations, particularly on a short-term basis.
When we really sit back with a smile on our face is when we run into a situation we can understand, where the facts are ascertainable and clear, and the course of action obvious.
People who watch their weight, golf scores, and fuel bills seem to shun quantitative evaluation of their investment management skills although it involves the most important client in the world-themselves.
Having first rate people on the team is more important than designing hierarchies and clarifying who reports to whom.
We set no volume goals in our insurance business generally-and certainly not in reinsurance-as virtually any volume can be achieved if profitability standards are ignored.
You have no ability, if you’re a financial institution and you’re threatened with criminal prosecution, you have no ability to negotiate.
I would rather sustain the penalties resulting from over-conservatism than face the consequences of error, perhaps with permanent capital loss, resulting from the adoption of “New Era” philosophy where trees really do grow to the sky.
I have a house that I bought 55 years ago. It’s warm in the winter; it’s cool in the summer. It has everything I wanted, plus it has all kinds of good memories. Like my kids, I have good thoughts about that. I can’t imagine living any better.
Take the high road; it’s far less crowded.
If we start deciding, based on guesses or emotions, whether we will or won’t participate in a business where we should have some long run edge, we’re in trouble.
Investment decision should be made on the basis of the most probable compounding of after-tax net worth with minimum risk.
A single year’s performance is of minor importance and, good or bad, should never be taken seriously.
It is to our advantage to have securities do nothing price-wise for months, or perhaps years, while we are buying them.
Our approach is very much profiting from lack of change rather than from change.
The managers at fault periodically report on the lesson they have learned from the latest disappointment. They then usually seek out future lessons.
We need a tax system that essentially takes very good care of the people who just really aren’t as well adapted to the market system but are nevertheless doing useful things in the society.