Don’t look at the ticker

December 6, 2014

This paragraph in “How Buffett Does It” by James Pardoe is worth noting: “Warren Buffett, the classic value investor, simply does not care what happens to price deviations in the short run. If one owns shares in great businesses, then the short term doesn’t matter, and the long term will take care of itself. The only exception to this rule is if prices drop significantly, offering Buffett a chance to buy more shares at the depressed levels. When stocks go on sale, Buffett is interested.”

James Pardoe went on to advise: “Instead of focusing on the price movements of his stock, an investor’s time would be better served by monitoring the performance of the business: its management, earnings, cash flow, future prospects, and so on.”