Lawrence A. Cunningham
A changing share price is not the same as a changing business value. Buffett’s approach is to judge the business and buy when its price offers a margin of safety.
Successful investing demands purchasing shares in excellent businesses when their market prices trade at a large discount to their underlying intrinsic values.
Investors should welcome market volatility because a fluctuating market periodically attaches irrationally low prices to fundamentally solid businesses.
Evaluating a business requires focusing on owner earnings rather than flawed metrics like EBITDA that ignore real economic costs such as capital expenditures.