Warren Buffett's Letters on Ignoring Noise

Vocabulary flashcards covering key concepts, historical market data, and investment principles from Warren Buffett's annual reports.

Political and Economic Forecasts

Predictions regarding future macro events that Warren Buffett characterizes as an expensive distraction for investors and businessmen.

Ben Graham's Investment Principles

Core principles of fundamental investing that remained entirely sound despite 30 years of major economic, political, and market shocks.

Fear (in Fundamental Investing)

A market sentiment described by Warren Buffett as the "foe of the faddist, but the friend of the fundamentalist."

Dow Jones Industrials (20th Century Growth)

The stock index that advanced from $66$ to $11,497$ in the 20th Century, representing a $17,320\%$ increase despite four costly wars, a Great Depression, and multiple recessions.

Dates of Historical Uncertainty

December 6, 1941, October 18, 1987, and September 10, 2001—dates cited by Warren Buffett to illustrate that tomorrow is always uncertain regardless of present serenity.

The American System

The system responsible for unleashing human potential that has enabled citizens to live six times better over Buffett's lifetime, surviving recessions and a Civil War.

1994 Berkshire Hathaway Annual Report

The letter where Buffett explains that Berkshire Hathaway usually made its best purchases when apprehensions about macro events were at a peak.

2010 Berkshire Hathaway Annual Report

The letter where Buffett argues that trying to "dance in and out" of the stock market based on predictions or expert opinions is a terrible mistake.

Treasury Bill Yield Fluctuations

Historic fluctuations in treasury bill yields ranging between $2.8\%$ and $17.4\%$ over a 30-year span mentioned in the 1994 letter.

Dow 508-Point Drop

A historic one-day drop of $508$ points in the Dow that, despite its magnitude, failed to invalidate fundamental investment principles.