I don’t try to jump over seven-foot bars,

I look around for one foot bars that I can step over.

Warren isn’t shooting for the stars.He isnt trying to hit home runs on every pitch.He is waiting for the perfect pitch and is staying with the sure thing, companies with products that don’t have to change,businesses that he knows will still be around in twenty years,selling now at a price that would make business sense even if he were buying the whole company.Lucky for him that the short-term focus of the stock market often neglects the long-term economics of business,which means the stock market will often misprice a great business.He keep it simple and leaves all the fortune-telling and complex investment strategies to the other guys on wall street.

In the stock market crash of 1973-74 you could buy Ogilvy & Mather,one of the strongest advertising agencies in the world,for $4 a share against per share earnings of $.76,which equated to a P/E of 5, Warren bought a ton of it during the crash and crashed out many years later after an annual rate of return of better than 20%.Some investements are just that simple.