Monday, July 26, 2010
More on Forecasters
"Forecasts may tell you a great deal about the forecaster, they tell you nothing about the future." – Warren Buffett in the 1980 Berkshire Hathaway Shareholder Letter
Applying Newton's Fourth Law
"Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac's talents didn't extend to investing: He lost a bundle in the South Sea Bubble, explaining later, 'I can calculate the movement of the stars, but not the madness of men.' If he had not been traumatized by this loss, Sir Isaac might well have gone on to discover the Fourth Law of Motion: For investors as a whole, returns decrease as motion increases." - Warren Buffett