“While investors and managers must place their feet in the future, their memories and nervous systems often remain plugged into the past. It is much easier for investors to utilize historic p/e ratios or for managers to utilize historic business valuation yardsticks then it is for either group to rethink their premises daily. When change is slow, constant rethinking is actually undesirable; it achieves little and slows response time. But when change is great, yesterday’s assumptions can be retained only at great cost. And the pace of economic change has become breathtaking.”

in Investing, Warren E. Buffett, Writers

-Warren E. Buffett, 1981 Chairman’s Letter to the Shareholders of Berkshire Hathaway, Inc.

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