Buffett’s thoughts on the Great Recession (Fortune, 3/11/2016)

Highlights:

In the interview, which took place in May 2010, Buffett admits that, like most everyone else, he didn’t see the financial crisis coming until it was too late.

Brad Bondi [financial crisis inquiry commission]: What do you think it was, if you were to point to one of the single driving causes behind this bubble? What would you say?

Warren Buffett: Well, there’s a very interesting aspect of this, which will take a minute or two to explain; but what my former boss, Ben Graham, made an observation, 50 or so years ago to me that it really stuck in my mind and now I’ve seen evidence of it.

He said, “You can get in a whole lot more trouble in investing with a sound premise than with a false premise.”

…we saw the same thing in housing. It’s a totally sound premise that houses will become worth more over time because the dollar becomes worth less. It isn’t because—you know, construction costs go up. So it isn’t because houses are so wonderful, it’s because the dollar becomes worth less, and that a house that was bought 40 years ago is worth more today than it was then……. continue reading through link

http://fortune.com/…/heres-what-warren-buffett-thinks-caus…/
Some pictures can be seen here (https://www.facebook.com/groups/SeekingValue/)

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