19 July 2011

I could solve this whole debt crisis in five minutes. Just pass a law that says anytime there is a deficit over 3% every sitting member of congress is ineligible for re-election.

Warren Buffett


Thought process of individual investor:

This fund did the best last month, so I should switch my investments over to the fund because, since it did the best last month, it will probably do the best this month also.


Thought process of mutual fund manager:

If I don’t beat the market this month, half my customers will jump ship. Whatever happens, I need to beat the market this month.


Thought process of Warren Buffett:

I think the US will still be great in 30 years, so I’m going to buy a railroad.