Being judged Quote by Warren Buffett
“It's easy to identify many investment managers with great recent records. But past results, though important, do not suffice when prospective performance is being judged. How the record has been achieved is crucial.”
About This Quote
Source Letter to Shareholders, Berkshire Hathaway, 2015
Past performance is insufficient; understanding the process behind results is essential for future judgment.
In simple terms: Good records don’t guarantee future success.
Key Takeaway
Focus on the quality of the investment process.
Themes
investment
performance evaluation
process analysis
Mood
analytical
pragmatic
Type
financial
educational
When to use this quote
- choosing managers
- portfolio review
- financial planning
Key Concepts
risk management
skill
track record
Questions to Reflect On
- How do you assess an investment manager’s method?
- What factors beyond returns matter?
A Different Perspective
Past success can be misleading without context.
