|Automobile Rearview Mirror Picture Conceptualising Hindsight|
"In the business world, the rearview mirror is always clearer than the windshield"
Warren Buffett wants to say through the crisp sentence that in business hindsight is far clearer than foresight - it is far better to draw conclusions based on past data rather than divining the future.
These golden words do apply to investing, nay, life itself. Don’t you think so?
Value investors burn midnight oil analyzing annual reports of the companies, going back into the past as deeply as possible, but not less than 10 to 15 years, to draw meaningful conclusions about the business model, management philosophy, integrity and so on.
On the contrary the so-called experts, the filler material of print and television media do not hesitate to make predictions about future prospects of companies at the drop of the hat. Such predictions not only prove to be fallacies but dangerous for innocent investors.
|Warren Buffett's Portrait Depicting Inspirational Quotes|