He must've been reading our blog

Yesterday, we published a blog post entitled "The Business of America is Business," in which we reiterated the importance of focusing on the concept of the ownership of shares in a business, especially at a time when the gyrations of the stock market make it almost impossible to remember that the stock price and the business are two very different things.

This morning in the New York Times, Warren Buffett published a very well-written opinion piece entitled "Buy American. I am." In it, he says that he is buying American companies now for his personal accounts, and stated that (while it is smart to be wary of buying shaky or over-leveraged companies) "fears regarding the long-term prosperity of the nation's many sound companies make no sense."

He notes that "In the twentieth century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497." Yet he marvels that, during such a tremendous period of business growth, there were investors who failed to make money because they allowed themselves to be stampeded by the market's wild fluctuations (a topic we have written on at length).

It is significant that such a famous and successful investor would be focusing on the importance of the concept of ownership of business at this time. We obviously found our thoughts turning in the same direction under the same circumstances. This should help validate these truths in the minds of readers who may not have the same background.

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