Warren Buffett, the chairman and CEO of Berkshire Hathaway (BRK.A) (BRK.B), has become as well known for his memorable turns of phrase as for his investment track record. His words often blend humor, pragmatism, and timeless lessons for investors.
The topic of financial bubbles and speculation remains evergreen, following a relatively straightforward and almost predictable path. While nobody ever knows when the next bubble will burst or how harshly, rampant speculation and overvaluations cannot continue forever. The money will dry up, and selling will ensue. After that, panic sets in as the earliest investors offload their gains onto the unsuspecting.
