A Dozen Things I’ve Learned from Bruce Berkowitz About Investing
1. “We don’t predict. We price. Predictions are terrible.” Value investors put predictions, especially macroeconomic predictions, in the “too hard” pile. Ben Graham and his disciples have developed a system which avoids doing things that are “too hard.” Looking at data from today, rather than a prediction about tomorrow, the value investor “prices” the asset and makes the investing decision. The key question is simple: what would a private buyer pay […]