Re: Improving On Buffett And Desert Cat
"Buffett never lets the market price influence his estimate of value"
I'm sure you are wrong. You are misreading his words. He is only saying that he makes an estimate of value without letting the price (which he would prefer to be unknown to him while he is making this estimate) influence him.
But if the price is signifantly different than his estimate he would be an idiot not to revise it. No expert in any field would do otherwise. In other words lets say he thought a stock was worth 100 and the market made it 60. a He has to bet whether or not it will over or below 90 in three years. Disregarding interest rate considerations, I'm sure he would bet under. He might bet over 70, or even 80. But he would have to believe that his estimate is probably too high once he saw the price. You basically admitted this yourself. Otherwise why give yourself this large margin of error?
|