Bill Nygren released a message for investors. I highlight some insightful points below:
- In the short run, however, stock price performance is controlled by supply and demand, which is strongly influenced by investor emotion.
- We buy businesses we believe are growing and well-managed, and we do so when we believe the company’s stock price does not reflect its real value. Then we wait.
- The waiting part can be frustrating, especially at a time when our stock prices are moving in the wrong direction.
- But there are only two ways we can fail – we can fail if our analysis is wrong, and we can fail if we run out of patience.
- That frustration, however, will not cause us to abandon the discipline that has served us so well for so many years.
- Prices and values will eventually converge, and we believe that convergence will be positive for our results.
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