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We also believe that investors can benefit by focusing on their own look-through earnings. To calculate these, they should determine the underlying earnings attributable to the shares they hold in their portfolio and total these. The goal of each investor should be to create a portfolio (in effect, a ‘company’) that will deliver him or her the highest possible look-through earnings a decade or so from now …

We also believe that investors can benefit by focusing on their own look-through earnings. To calculate these, they should determine the underlying earnings attributable to the shares they hold in their portfolio and total these. The goal of each investor should be to create a portfolio (in effect, a ‘company’) that will deliver him or her the highest possible look-through earnings a decade or so from now …

December 3, 2016 Nate

The Essays of Warren Buffett p. 236

We also believe that investors can benefit by focusing on their own look-through earnings. To calculate these, they should determine the underlying earnings attributable to the shares they hold in their portfolio and total these. The goal of each investor should be to create a portfolio (in effect, a ‘company’) that will deliver him or her the highest possible look-through earnings a decade or so from now.

An approach of this kind will force the investor to think about long-term business prospects rather than short-term stock market prospects, a perspective likely to improve results. It’s true, of course, that, in the long run, the scorecard of investment decisions is market price. But prices will be determined by future earnings. In investing, just as in baseball, to put runs on the scoreboard one must watch the playing field, not the scoreboard.”


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Altruism A Philosophy of Life Awareness Biology Brain & Mind Caring Too Much About What Others Think Charlie Munger Death Democracy Desire Economics Emotions Epictetus Fear Funny History Human Behavior Human Folly Immigration Individuality Investing Irrationality Knowledge Language Life Love Machine Learning Marcus Aurelius Marriage Money Pain & Suffering Perspective Politics Prince Seneca Social Influence Standard of Living Stoics Success Thinking Time Truth Uncertainty War Work
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