Book Quote by Warren Buffett
“In other words, the percentage change in book value in any given year is likely to be reasonably close to that year's change in intrinsic value.”
About This Quote
Source Book: The Essays of Warren Buffett, 1997
The change in a company's book value each year tends to mirror the change in its true economic worth.
In simple terms: Book value changes reflect intrinsic value changes.
Key Takeaway
Use book value as a proxy for intrinsic value.
Themes
investment
valuation
finance
Mood
analytical
cautious
Type
advisory
financial
When to use this quote
- stock analysis
- portfolio management
- financial reporting
Key Concepts
intrinsic value
book value
market perception
Questions to Reflect On
- How reliable is book value in fast‑changing industries?
- When does intrinsic value diverge from book value?
A Different Perspective
Book value may lag or mislead during market volatility.
![“Just look at that Forbes 400. Takes a billion three to get on the Forbes 400 this year. And the aggregate wealth is just staggering. And those people are paying less percentage of their total income to the federal government than their receptionists are. [...] I'll bet a million dollars against…” quote by Warren Buffett](https://sms4smile.com/quotes/img-quotes/6fd/warren-buffett-183_average_just-look-at-that-forbes-400-takes-a-bil_1970232.jpg)
