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Maybe it's just me, but I find it obvious that they did better because they focused on long term goals, instead of short term profits.
by AaronM 11y ago
Maybe it's just me, but I find it obvious that they did better because they focused on long term goals, instead of short term profits.
- nickpsecurity 11y agoSame here. We saw the same with GE and many large tech companies for a while. The only exception that made sense was when companies made sacrifices for growth to put themselves on the right side of eventual monopoly or oligopoly. Even that's long-term thinking in its own regard as it's a setup for future plays.
- AndrewKemendo 11y agoIt's not just you, it's their entire investment strategy. I did some study of Buffett/BH/Graham in college and resoundingly they do "value investing" which is predicated on the notion that true gains are made in longevity. Highly recommend the intelligent investor as a starting point in understanding the BH ethos. That said, BH has done some short term deals - and was taken to task in 2008 for their involvement in CDO trading. So it's not all peaches and cream.
- Retric 11y agoCDO's are actually a useful tool for highly competent investors. However, the overwhelming majority of investors aren't. The reality is 10's of trillions in assets are managed by people who don't know what there doing and have little incentive to learn. Because, when your playing with other peoples money managing more has better ROI than managing well.