The Daily Buffett

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Finding Value in Yawns

July 24th

We select such investments on a long-term basis, weighing the same factors as would be involved in the purchase of 100% of an operating business: (1) favorable long-term economic characteristics; (2) competent and honest management; (3) purchase price attractive when measured against the yardstick of value to a private owner; and (4) an industry with which we are familiar and whose long-term business characteristics we feel competent to judge.

Warren Buffett

A solid investment decision is not always heralded with fanfare and applause. Instead, it is the careful, deliberate choices that may go unnoticed at first but yield substantial returns in the long run.

The allure of short-term gains can be tempting, steering us towards decisions aimed at quick profit and instant approval. Yet, such actions can divert us from the path of long-term sustainability and solid value growth.

In contrast, investments that initially seem mundane, represented here as "yawns," often encapsulate the gradual progress of a well-considered decision. These decisions may not capture immediate attention or generate excitement. However, over time, they prove their worth by providing consistent, reliable returns, forming the stable foundation of a robust investment portfolio.

It is then essential to prioritize enduring success over fleeting excitement. In the realm of investing and life at large, quiet, consistent effort is often the most rewarding, leading to results that stand the test of time.

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