Warren Buffett on Stock Prices

Certainly most of the professional investors focus on what the stock is likely to do in the next year or two But they do not really think of themselves as owning a piece of a business

But the real test of whether you’re investing from a value standpoint or not is whether you care whether the stock market is open tomorrow. If you’re making a good investment in a security it shouldn’t bother if they close down the stock market for five years. And I can look at the price occasionally to see whether the price is outlandishly cheap or outlandishly high. But but prices don’t tell me anything about a business But the price of a stock doesn’t tell me anything about a business I would rather value a stock or a business first and not even know the price so that I’m not influenced by the price in establishing my valuation and then look at the price later to see whether it’s way out of line with what my value is.

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