Apples Quote by Warren Buffett
“Interest rates are to asset prices what gravity is to the apple. When there are low interest rates, there is a very low gravitational pull on asset prices.”
About This Quote
Source Speech: Annual Shareholder Letter, Berkshire Hathaway, 1999
Interest rates act like gravity on asset prices; lower rates reduce the pull, allowing prices to rise more easily.
In simple terms: Low rates lift asset prices.
Consider rate impacts on investments.
Themes
Mood
Type
When to use this quote
- real estate valuation
- stock market analysis
- bond pricing
- portfolio strategy
Key Concepts
Questions to Reflect On
- How do you adjust asset allocation when rates change?
- What assets are most sensitive to rate shifts?
Higher rates can increase risk of overvaluation.