[Reading Buffett] 1988

Buffett believes efficient market exists most of the time, but not always, given his long term history of arbitrage returns of over 20% vs market of 10%.

It’s such an amazing fact that for quality businesses like See’s Candy, the profit relied a lot on December (90% of its 1988 annual profit).

Again, Buffett cautioned against the ever larger capital base, which needed more additional profits to continue to compound.