BUSI 4502 Lecture Notes - Lecture 6: Warren Buffett, Market Trend, Cash Flow
30 Aug 2018
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Article 19 & 20 warren buffett on the stock market. Investing is defined as laying out money now and gets more money back in the future after taking inflation into account. These articles were discussions regarding the long-term future of stocks. In the first article, the author states that the stocks will fall drastically and that investors are over optimistic about stock performance. However, in the second article, the author is expected to see higher long-term returns instead. In the first article, the author discuss about the 2 variables affecting investment result, which are interest rate and after tax corporate profit. These two factors have contributed to the huge increase in growth in economy and stock market. The higher the interest rate, the prices of all other investments are lower. The return on investment can be determined by looking at the risk free interest rate first.
