“Investing is often described as the process of laying out money now in the expectation of receiving more money in the future. At Berkshire we take a more demanding approach, defining investing as the transfer to others of purchasing power now with the reasoned expectation of receiving more purchasing power—after taxes have been paid on nominal gains—in the future. More succinctly, investing is forgoing consumption now in order to have the ability to consume more at a later date.”

in Investing, Warren E. Buffett, Writers

-Warren E. Buffett, 2011 Chairman’s Letter to the Shareholders of Berkshire Hathaway, Inc.

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