Historical performance not indicative of future returns from "summary" of Essays of Warren Buffett by Lawrence A. Cunningham
Buffett cautions against assuming that past performance will necessarily be a reliable guide to future performance. He stresses the importance of being wary of predictions based solely on historical data. He argues that the future is inherently uncertain and that trends can change unexpectedly. Buffett believes that investors should not rely solely on historical performance when making investment decisions, as it may lead to misleading conclusions. Buffett emphasizes the need for investors to exercise caution and discernment when evaluating investment opportunities. He advises against blindly following trends or assuming that past success will guarantee future gains. According to Buffett, past performance is just one factor to consider when assessing an investment, and it should not be the sole basis for decision-making. He encourages investors to conduct thorough research and an...
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