--- title: "Meaning & Key Takeaway of: The most common cause of low prices is…" description: "\"The most common cause of low prices is pessimism - sometimes pervasive, sometimes specific to a company or industry. We want to do business in such an ..." image: "https://sms4smile.com/quotes/i/9cc/warren-buffett-183_buffets_the-most-common-cause-of-low-prices-is-p_2359138.jpg" --- # The most common cause of low prices is pessimism… ![“The most common cause of low prices is pessimism - sometimes pervasive, sometimes specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces.” quote by Warren Buffett](https://sms4smile.com/quotes/i/9cc/warren-buffett-183_buffets_the-most-common-cause-of-low-prices-is-p_2359138.jpg) [Download](https://sms4smile.com/quotes/i/9cc/warren-buffett-183_buffets_the-most-common-cause-of-low-prices-is-p_2359138.jpg) [Open image](https://sms4smile.com/quotes/i/9cc/warren-buffett-183_buffets_the-most-common-cause-of-low-prices-is-p_2359138.jpg) > “The most common cause of low prices is pessimism - sometimes pervasive, sometimes specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces.” [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Pessimism can drive prices down, making it attractive for investors who value low-cost opportunities. **In simple terms:** Low prices often result from widespread pessimism. Key Takeaway Seek value in pessimistic markets. Themes investment strategy market psychology value investing Mood cautious analytical Type financial strategic When to use this quote - stock market - real estate - commodity trading Key Concepts contrarian investing price cycles Questions to Reflect On - When is pessimism a warning sign? - How to differentiate healthy and unhealthy pessimism? A Different Perspective Pessimism may signal deeper economic issues, not just cheapness. ★ ★ ★ ★ ★ No ratings yet [Buffets](https://sms4smile.com/quotes/about/buffets/) [Business](https://sms4smile.com/quotes/about/business/) [Cause Low](https://sms4smile.com/quotes/about/cause-low-452316/) [Causes](https://sms4smile.com/quotes/about/causes/) [Common](https://sms4smile.com/quotes/about/common/) [Company](https://sms4smile.com/quotes/about/company/) [Environment](https://sms4smile.com/quotes/about/environment/) [Industry](https://sms4smile.com/quotes/about/industry/) [Insightful](https://sms4smile.com/quotes/about/insightful/) [Investing](https://sms4smile.com/quotes/about/investing/) [Like Prices](https://sms4smile.com/quotes/about/like-prices-5770153/) [Low Prices](https://sms4smile.com/quotes/about/low-prices-452314/) [Lows](https://sms4smile.com/quotes/about/lows/) [Pessimism](https://sms4smile.com/quotes/about/pessimism/) [Prices Pessimism](https://sms4smile.com/quotes/about/prices-pessimism-452313/) [Prices Produces](https://sms4smile.com/quotes/about/prices-produces-452317/) [Produce](https://sms4smile.com/quotes/about/produce/) [Sometimes](https://sms4smile.com/quotes/about/sometimes/) [Values](https://sms4smile.com/quotes/about/values/) [Want](https://sms4smile.com/quotes/about/want/) ## Related quotes > [The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to…](https://sms4smile.com/quotes/warren-buffett/the-most-common-cause-of-low-prices-is-pessimism-some-times-pervasive/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [We will reject interesting opportunities rather than over-leverage our balance sheet.](https://sms4smile.com/quotes/warren-buffett/we-will-reject-interesting-opportunities-rather-than-over-leverage/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [We don't get paid for activity, just for being right. 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That is very uncommon in American business.](https://sms4smile.com/quotes/warren-buffett/i-insist-on-a-lot-of-time-being-spent-almost-every-day-to-just-sit/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.](https://sms4smile.com/quotes/warren-buffett/i-try-to-buy-stock-in-businesses-that-are-so-wonderful-that-an-idiot/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the…](https://sms4smile.com/quotes/warren-buffett/the-most-important-quality-for-an-investor-is-temperament-not/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac's talents didn't extend to…](https://sms4smile.com/quotes/warren-buffett/long-ago-sir-isaac-newton-gave-us-three-laws-of-motion-which-were-the/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) ## More by Warren Buffett > [To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information. What's needed is a sound intellectual…](https://sms4smile.com/quotes/warren-buffett/to-invest-successfully-over-a-lifetime-does-not-require-a/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [“Be fearful when others are greedy, and be greedy when others are fearful.”](https://sms4smile.com/quotes/warren-buffett/be-fearful-when-others-are-greedy-and-be-greedy-when-others-are/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Making money isn't the backbone of our guiding purpose; it is the by-product of our guiding purpose.](https://sms4smile.com/quotes/warren-buffett/making-money-isn-t-the-backbone-of-our-guiding-purpose-it-is-the-by/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [We set no volume goals in our insurance business generally-and certainly not in reinsurance-as virtually any volume can be achieved if profitability standards are…](https://sms4smile.com/quotes/warren-buffett/we-set-no-volume-goals-in-our-insurance-business-generally-and/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Everybody's got a different circle of competence. 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If you're a furniture retailer like we are, you're…](https://sms4smile.com/quotes/warren-buffett/i-ve-read-about-all-the-sales-today-if-you-re-an-auto-dealer-you-re/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I was lucky enough to be born in a time and place where society values my talent, and gave me a good education to…](https://sms4smile.com/quotes/warren-buffett/i-was-lucky-enough-to-be-born-in-a-time-and-place-where-society/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to…](https://sms4smile.com/quotes/warren-buffett/the-most-common-cause-of-low-prices-is-pessimism-some-times-pervasive/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The reaction of weak management to weak operations is often weak accounting.](https://sms4smile.com/quotes/warren-buffett/the-reaction-of-weak-management-to-weak-operations-is-often-weak/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [What you really want to do in investments is figure out what's important and knowable. If it's unimportant or unknowable you forget about it.](https://sms4smile.com/quotes/warren-buffett/what-you-really-want-to-do-in-investments-is-figure-out-what-s/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I don't measure my life by the money I've made. Other people might, but certainly don't.](https://sms4smile.com/quotes/warren-buffett/i-don-t-measure-my-life-by-the-money-i-ve-made-other-people-might-but/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I mean the truth is, I've never had it so good in terms of taxes. I am paying the lowest tax rate that I've…](https://sms4smile.com/quotes/warren-buffett/i-mean-the-truth-is-i-ve-never-had-it-so-good-in-terms-of-taxes-i-am/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the…](https://sms4smile.com/quotes/warren-buffett/the-most-important-quality-for-an-investor-is-temperament-not/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Investors, of course, can, by their own behavior make stock ownership highly risky. And many do. Active trading, attempts to "time" market movements, inadequate…](https://sms4smile.com/quotes/warren-buffett/investors-of-course-can-by-their-own-behavior-make-stock-ownership/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) [Explore all 984 Warren Buffett quotes ](https://sms4smile.com/quotes/author/warren-buffett/) ## More Buffets quotes > [The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to…](https://sms4smile.com/quotes/warren-buffett/the-most-common-cause-of-low-prices-is-pessimism-some-times-pervasive/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The most important quality for an investor is temperament, not intellect. 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God knows that I know how to find my way around the buffets in Las Vegas.](https://sms4smile.com/quotes/rick-majerus/i-love-vegas-god-knows-that-i-know-how-to-find-my-way-around-the/) [Rick Majerus](https://sms4smile.com/quotes/author/rick-majerus/) > [I insist on a lot of time being spent, almost every day, to just sit and think. That is very uncommon in American business.](https://sms4smile.com/quotes/warren-buffett/i-insist-on-a-lot-of-time-being-spent-almost-every-day-to-just-sit/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Do not save what is left after spending, but spend what is left after saving.](https://sms4smile.com/quotes/warren-buffett/do-not-save-what-is-left-after-spending-but-spend-what-is-left-after/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The only thing they recognize is a buffet](https://sms4smile.com/quotes/bobby-h-barbee-sr/the-only-thing-they-recognize-is-a-buffet/) [Bobby H. Barbee, Sr](https://sms4smile.com/quotes/author/bobby-h-barbee-sr/) > [Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results.](https://sms4smile.com/quotes/warren-buffett/never-count-on-making-a-good-sale-have-the-purchase-price-be-so/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Risk comes from not knowing what you are doing so wide diversification is only required when investors are ignorant. You only have to do…](https://sms4smile.com/quotes/warren-buffett/risk-comes-from-not-knowing-what-you-are-doing-so-wide/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I'm a big guy, but I'm really simple with the food. 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Yes, I…](https://sms4smile.com/quotes/justin-bieber/my-first-date-has-been-mythologized-as-bieber-s-dating-disaster-i/) [Justin Bieber](https://sms4smile.com/quotes/author/justin-bieber/) > [There's nothing wrong with sending a quick note if you're busy or just want to flirt, but it's hard to have any real interaction…](https://sms4smile.com/quotes/greg-behrendt/there-s-nothing-wrong-with-sending-a-quick-note-if-you-re-busy-or/) [Greg Behrendt](https://sms4smile.com/quotes/author/greg-behrendt/) > [When you make a to-do list, you should also make a to-not-do list. Warren Buffet was asked about the secret to success, and he…](https://sms4smile.com/quotes/brian-tracy/when-you-make-a-to-do-list-you-should-also-make-a-to-not-do-list/) [Brian Tracy](https://sms4smile.com/quotes/author/brian-tracy/) [Browse all 123 Buffets quotes ](https://sms4smile.com/quotes/about/buffets/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "The most common cause of low prices is pessimism - sometimes pervasive, sometimes specific to a company or industry. 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