Here’s a great recent interview with Warren Buffett at CNBC discussing a number of topics including his value investing mindset. Here’s an excerpt from the interview:
BECKY QUICK: I know you’re like Dr. Spock. You’re completely emotionless, when it comes to dealing with market moves. But is there any part of you that gets a little queasy, when you see that you’ve lost $4 billion in a day?
WARREN BUFFETT: Not in the least. No. I mean, it makes me– assuming I like the business. It depends which ones they are. But overwhelmingly– during the fourth quarter that things were going down, A, they were buying out their own stock. So I’m actually making money that day, you know, without laying out a dime. And then secondly, I can buy more of some, although a lot of ’em, I’ve got that 10%– problem with. But I– mean, there are certain stocks I would’ve kept buying, except I was bumping up against– the 10%. But no, I– mean, if you paid X dollars a pound for hamburger yesterday, and you go in today, and now, it’s at 80% of X, maybe you have a little hamburger left in your refrigerator or something. Do you tear your hair out over that? Or do you say, “My God, you know, this is terrific. The price is cheaper”? What– else in the world don’t you like to buy cheaper than you’re paying the day before?
BECKY QUICK: That’s a fair point–
WARREN BUFFETT: If you’re gonna– if you’re gonna keep buying it.
BECKY QUICK: That’s a very logical way of looking at things, (LAUGH) very rational way.
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