Buffett discusses his purchase of two pieces of real estate (a farm in Nebraska and a retail property in New York City) and compares them to stock market investing:
- "You don’t need to be an expert in order to achieve satisfactory investment returns"
- "Focus on the future productivity of the asset you are considering"
- "If you instead focus on the prospective price change of a contemplated purchase, you are speculating"
- "With my two small (real estate) investments, I thought only of what the properties would produce and cared not at all about their daily valuations. Games are won by players who focus on the playing field – not by those whose eyes are glued to the scoreboard. If you can enjoy Saturdays and Sundays without looking at stock prices, give it a try on weekdays."
- "Forming macro opinions or listening to the macro or market predictions of others is a waste of time. Indeed, it is dangerous because it may blur your vision of the facts that are truly important."
- "Owners of stocks, however, too often let the capricious and often irrational behavior of their fellow owners cause them to behave irrationally as well. Because there is so much chatter about markets, the economy, interest rates, price behavior of stocks, etc., some investors believe it is important to listen to pundits – and, worse yet, important to consider acting upon their comments." All he means is act wisely with a long term view.
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