In his 1999 warning that the stock market over the next 17 years "will not perform anything like it performed in the past 17 years", Warren Buffett made several other interesting observations.
He said [in 1999], "Investors in stocks these days are expecting far too much. . . . . . Once a bull market gets under way, and once you reach the point where everybody has made money no matter what system he or she followed, a crowd is attracted into the game that is responding not to interest rates and profits, but simply to the fact that it seems a mistake to be out of stocks. In effect, these people superimpose an I-can't-miss-the-party factor on top of the fundamental factors that drive the market. . . . . . . Investors project out into the future what they've been seeing. That's their unshakable habit: looking into the rear-view mirror instead of through the windshield. . . . Staring back at the road just travelled [this was in 1999] most investors have rosy expectations."
If we do that now, we sure see no problems.
No comments:
Post a Comment