Buffett 2.0 – ” buying good businesses at fair prices rather than fair businesses at good prices”.
Value investing is not low multiples.. And high multiples could also be value investing.
Warren Buffett noted that investments in the secondary market have generally performed better due to periodic market inefficiencies offering bargains, unlike the new-issue market, where sellers rarely underprice their offerings.
There was an important change to accounting – companies must now recognize the present value of liabilities for post-retirement health benefits, increasing balance-sheet liabilities and reducing net worth.
Another important reminder – stock options are real expenses.