Famed investor Warren Buffett generated fantastic returns over the course of his life by following a specific strategy of making investments in deeply undervalued companies when nobody else was interested in them. In the example quoted above, Warren Buffett took advantage of an outstanding buying opportunity in South Korea, once again committing capital to investments that were unpopular while avoiding those investments that were popular.
“The four most expensive words in the English language are ‘this time it’s different.’” It’s different this time, and it’s also not different this time. It’s different this time because the credit-driven U.S. economy is burdened with a monumental level of financial obligations relative to GDP.
History often repeats itself; when the economy is persistently weak, populism and trade protectionism tend to rise.
Analyzing historical precedents can often provide useful insights. As Mark Twain once said, “history doesn’t repeat itself, but it often rhymes.”
“This is an upsetting event to all of us here at United…
I apologize for having to re-accommodate these customers.” Oscar Munoz, CEO of United Continental Airlines
In hindsight, corporate scams are easy to identify; hindsight vision is always clearer at the bottom of an
economic cycle or at the bottom of a Bear Market after the money has disappeared.