“Like a Hitchcock film. You did not need to see the blood and gore and violence – the hint of it and the menace that pervaded the office was worse.”
- Theo Zemek cheerily describes the atmosphere at New Star Asset Management.
Just as there are said to be no atheists in foxholes, try finding a long-term investor during a Crash, or even amid fears of one. We extend this thesis and welcome in the New Year by means of two Buffett-related behavioural anecdotes; one from the great man himself, the other courtesy of Sanlam’s Kokkie Kooyman.
From the 1997 Chairman’s Letter to the shareholders of Berkshire Hathaway:
“A short quiz. If you plan to eat hamburgers throughout your life and are not a cattle producer, should you wish for higher or lower prices for beef ? Likewise, if you are going to buy a car from time to time but are not an auto manufacturer, should you prefer higher or lower car prices ? These questions, of course, answer themselves.
“But now for the final exam: if you expect to be a net saver during the next five years, should you hope for a higher or lower stock market during that period ?
To read more,
Download A beef quiz and revisited Koo
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