What Buffett’s Apple Exit & Berkshire’s Alphabet Bet Reveal About Valuation Discipline

Price, Not Prophecy | What Buffett’s Apple Exit & Berkshire’s Alphabet Bet Reveal About Valuation Discipline

It is easy to turn Buffett into a mystic who simply sees further than everyone else. The Apple and Alphabet story suggests something less magical and far more usable. He did not need to know that memory costs would spike, or that Google’s search business would prove more durable than the doubters feared. He needed only to keep asking one question: is the price I am being offered higher or lower than what this business is worth?

That is the quiet power of valuation discipline. It does not ask you to be right about the future, which is impossible. It asks you to be honest about the present, which is merely hard. In a market once again paying dearly for a future in which everything goes right, that is a distinction worth keeping close.

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