Warren Buffett Warns Investing At ‘Too-High Purchase Price’ Even for ‘an Excellent Company’ Can Undo a Decade of Smart Investing
Warren Buffett, the long-serving chairman and CEO of Berkshire Hathaway (BRK.B) (BRK.A), is well known for his disciplined investment philosophy and clear-eyed warnings about investor behavior. Among his most enduring insights is the principle that “for the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments.” This quote serves as a cautionary reminder that valuation matters — even when the underlying business is exceptional.