Warren Buffett Ignores Technical Analysis, News, and Wall Street | Exploring Markets

Warren Buffett Ignores Technical Analysis, News, and Wall Street

The quote we've highlighted below is simple, yet informing and reassuring for long-term investors. Warren Buffett thinks about earnings, and that's it. He ignores chart patterns, and tunes out the news. He even blocks out Wall Street analysts. All investors know how hard it is to stay calm and stick to a plan. This quote comes from the 2017 Berkshire Hathaway investor letter and we hope it's a pleasant read for you today:

"Charlie and I view the marketable common stocks that Berkshire owns as interests in businesses, not as ticker symbols to be bought or sold based on their “chart” patterns, the “target” prices of analysts or the opinions of media pundits. Instead, we simply believe that if the businesses of the investees are successful (as we believe most will be) our investments will be successful as well. Sometimes the payoffs to us will be modest; occasionally the cash register will ring loudly. And sometimes I will make expensive mistakes. Overall – and over time – we should get decent results. In America, equity investors have the wind at their back." - Warren Buffett