A Compilation of Warren Buffett’s Online Articles
I recently ordered Tap Dancing to Work, a collection of articles on (and sometimes by) Warren Buffett that had appeared in Fortune magazine over the years. Unfortunately, I found the book somewhat disappointing because I had already read the better bits over the years (most of it is already available online) and the bits that I had missed (usually the older articles) were hardly interesting. A further quibble is that some of Mr. Buffett’s work that were published elsewhere are not included in the book.
If you have an hour or so and are interested in reading some of Mr. Buffett’s works check out the following articles available online. And prepare to be amazed by a guy who has made some astonishingly prescient market calls despite claiming to have no idea where the markets are headed short-term.
By Warren Buffett, Published May 1977 in Fortune Magazine
For many years, the conventional wisdom insisted that stocks were a hedge against inflation. The proposition was rooted in the fact that stocks are not claims against dollars, as bonds are, but represent ownership of companies with productive facilities. These, investors believed, would retain their value in real terms, let the politicians print money as they might.
And why didn’t it turn out that way? The main reason, I believe, is that stocks, in economic substance, are really very similar to bonds.
By Warren Buffett, Published 1984 in Hermes, Columbia Business School Magazine
I’m convinced that there is much inefficiency in the market. These Graham-and-Doddsville investors have successfully exploited gaps between price and value. When the price of a stock can be influenced by a “herd” on Wall Street with prices set at the margin by the most emotional person, or the greediest person, or the most depressed person, it is hard to argue that the market always prices rationally. In fact, market prices are frequently nonsensical.