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This video clip is taken from a 1996 Berkshire Hathaway shareholder meeting that I have the full video linked above. A shareholder ask Buffett about what he thinks about the Nasdaq companies selling at fairly high multiples of their revenue.
In short Warren Buffett essential states he does not look at the stock market as a whole to see whether a stock is a good investment but rather he focuses on individual companies.
I think this video can help many individual investors (or what the media calls retail investors) as we are in the longest bull market in history and many stocks like Amazon, Planet Fitness, and others are selling at p/e ratios above 60. But there are more to corporations than their price to earning ratios.
I was watching this annual meeting the other day and I saw this part and I knew it would be a good post. I thought back to just a day prior when I was watching Jeremy from the Financial Education Channel or the Financial Education Channel 2 (who knows these days). Talk about whether he thinks the stock market as a whole is overvalued. Notwithstanding I found the video interesting, from an investment point of view I felt that What really matters as far as investment performance is the invdividual company you are considering investing in and perhaps to some smaller degree the economy of the nations in which the company does business. But the company is at least where 98% of where one's research energy and time should be spent.
But let me know what you think in the comments?
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