Stock Market: Weighing vs. Voting Machines

the stock market in the short-run is a voting machine

in the long-run, it is a weighing machine


“And, you know, five years from now, ten years from now, we’ll look back on this period and we’ll see that you could have made some extraordinary buys. That doesn’t mean it won’t get more extraordinary a week or a month from now. [K: This is key, even Buffett is not predicting a bottom, but he never wants to or needs to predict the bottom.] I have no idea what the stock market is going to do next month or six months from now. I do know that the American economy, over a period of time, will do very well, and people who own a piece of it will do well.”

as Warren Buffett has reminded us few days ago

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