Buffett and Beyond by Dr. Joseph Belmonte

Author:Dr. Joseph Belmonte
Language: eng
Format: epub
ISBN: 9781118955789
Published: 2014-01-20T00:00:00+00:00

Important Note: Approximately

As you can see, I use numbers like 12.6 percent and $100 target price and retention rate of 55.7 percent. Please don’t get hung up on the decimal places or exact numbers. Buffett says that it is better to be approximately correct than precisely wrong. The future of the economics of the world, country, and individual company can only be approximated. If the past has been consistent, then we are assuming the future will be consistent. So “approximately” is the word of the day.

The other side of the market (other than economics) is the human emotion. I can tell you this with exactness. Human emotion can take those precise numbers and make them all look rather silly.

Put both economics and human emotion together and think about this for a moment. Think about how much you were worth in 1999 and how much you were worth at the end of 2002. I would say your worth was not exactly the same.

So maybe you might think about how I handle the situation and do what Warren Buffett suggests. It’s better to be approximately correct than precisely wrong. And I leave it at that.

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