Sunday, December 18, 2005

"Does the current recession change our attitude toward investing?"

"Does the current recession change our attitude toward investing?" It doesn't change it a nickel's worth. If something comes along tomorrow that's interesting, I will do it tomorrow. And it will be by exactly the same yardsticks I used whenever the business cycle was at its peak. We don't care what businesses are doing. If the Chairman of the Federal Reserve called me tonight and said "I am really panicking and things are terrible," I don't care. We will do exactly what we were going to do tomorrow morning. The truth is, on balance, we will do more business when people are pessimistic. Not because we like pessimism, but because it makes for prices that are much more attractive. If you all have filling stations to sell in South Bend, I want to do business with whomever is most negative about filling stations. And that's were I'm going to make the best buy. Times are really good and times are really bad, over a period of time. We don't quit selling candy in July just because it isn't Christmas. We pay no attention to economic forecasts. I don't read anything [along those lines]. I read annual reports, but I don't read anybody's opinion about what's going to happen next week, or next month or next year.

Excerpt from "Three Lectures by Warren Buffett to Notre Dame Faculty, MBA Students and Undergraduate Students"


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