Average Quote by Warren Buffett
“Do not take yearly results too seriously. Instead, focus on four or five-year averages.”
About This Quote
Source Shareholder Letter, Berkshire Hathaway, 1999
Short‑term results are noisy; long‑term averages reveal true performance.
In simple terms: Ignore yearly swings, look at multi‑year trends.
Key Takeaway
Focus on long‑term averages.
Themes
investing
patience
analysis
Mood
calm
analytical
Type
financial
advice
When to use this quote
- stock market
- portfolio review
- economic cycles
- financial planning
Key Concepts
financial metrics
statistical smoothing
Questions to Reflect On
- How many years should you average?
- What indicators complement long‑term averages?
A Different Perspective
Short‑term data can be misleading.
