Warren Buffett’s line, “Those who cannot fill your pocket will confidently fill your ear,” captures a central theme of Berkshire Hathaway’s (BRK.B) (BRK.A) 1983 shareholder letter: high-energy market chatter often serves intermediaries more than owners. He used the remark to explain why Berkshire avoids policies that encourage rapid trading in its shares and instead seeks a shareholder base focused on underlying business value rather than market theatrics.
In that same section of the letter to Berkshire investors, Buffett outlined how turnover and the pursuit of “liquidity” can become goals in themselves, even as they do little to improve a company’s earning power.
