warren buffet

Taken from today's Daily Reckoning newsletter:

“Years ago Warren Buffett asked an amusing question in one of his annual letters to the shareholders of Berkshire Hathaway. He noted that he was perplexed by people’s mood swings in relation to stock prices. He wondered why people were happy when the stock market was high and somber when it was low because he believes it should be the other way around.

“To explain his point he asked the following question: If you ate only hamburgers your entire life, would you want the price of hamburgers to be high or low? Clearly, you would want the price to be low because in that way you would obviously maximize the purchasing power of your dollars. So too with stocks. When their price is low, you get more stocks for your dollars."

Unfortunately only applicable for those that didn't put ALL their available dough into ERH at a much higher price...others should be happy and accumulate many more as it drops.

Of course he is only applying this to good quality undervalued stocks...but since ERH is a good quality undervalued stock thats not an issue.

Cdchi1