Assets Quote by Warren Buffett
“I mean, you can explain the fact that these are depressed prices, you know. We think these assets are going to be worth a lot more. And I think that case can be made in certain situations. But I think to just say, you know, we're going to say a dollar of cash is worth $2 all of a sudden, it isn't worth $2. It's worth a dollar today.”
About This Quote
Source Annual Shareholder Letter, Berkshire Hathaway, 2018
Investors often overvalue future cash flows without accounting for present value, leading to mispriced assets.
In simple terms: Future cash isn’t worth today’s value.
Key Takeaway
Focus on present value.
Themes
valuation
investment
risk
economics
Mood
analytical
cautious
Type
financial
educational
When to use this quote
- stock analysis
- portfolio management
- financial planning
Key Concepts
finance theory
behavioral economics
Questions to Reflect On
- What risks are ignored when valuing future cash?
- How can investors better assess present value?
A Different Perspective
Assuming future cash equals current value ignores risk.
![“[When I die], I will decidedly not be regretting missed opportunities for a good time. My regrets will be more along the lines of a sad list of people hurt, people let down, assets wasted and advantages squandered.” quote by Anthony Bourdain](https://sms4smile.com/quotes/img-quotes/ba3/anthony-bourdain-649_advantage_when-i-die-i-will-decidedly-not-be-regre_24502.jpg)
