Customer Quote by Warren Buffett
“What's hot today isn't likely to be hot tomorrow. The stock market reverts to fundamental returns over the long run. Don't follow the herd.”
About This Quote
Source Annual Shareholder Letter, Berkshire Hathaway, 2008
Market trends are fleeting; fundamentals drive long‑term returns, so avoid herd mentality.
In simple terms: Short‑term hype fades; fundamentals matter.
Key Takeaway
Invest based on fundamentals, not trends.
Themes
investment
fundamentals
herd behavior
Mood
analytical
cautious
Type
financial
advice
When to use this quote
- retirement planning
- stock selection
- portfolio diversification
- risk management
Key Concepts
financial theory
behavioral economics
Questions to Reflect On
- How do you identify true fundamental value?
- What signals indicate a market herd?
A Different Perspective
Fundamentals can be hard to assess accurately.
