Thursday, March 7, 2013

THE BUSINESS OF AMERICA

Here's a quote from Warren Buffett's annual report to his shareholders. Make of it what you want and will.
“American business will do fine over time. And stocks will do well just as certainly, since their fate is tied to business performance. Periodic setbacks will occur, yes, but investors and managers are in a game that is heavily stacked in their favor…Since the basic game is so favorable, Charlie and I believe it’s a terrible mistake to try to dance in and out of it based upon the turn of tarot cards, the predictions of “experts,” or the ebb and flow of business activity. The risks of being out of the game are huge compared to the risks of being in it.”
We spend much time every now and then talking about the so-called experts. Yes, they know who they are. Just ask them. Go back and look at JFK's quote about the Bay of Pigs disaster and the experts. A little history now and then doesn't hurt, either.

Remember the Guru Rule: There are no gurus. Only two things can prove Buffett incorrect: more government regulations and higher taxes all around.

If as Buffett states "investors and managers are in a game that is heavily stacked in their favor," America and its businesses are no less favorably stacked. Kill one, kill the other. 

As John D. Rockefeller once said: "The business of America is business."

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