It is better to be approximately right than precisely wrong. - Warren Buffett

Instead, he takes those coupons from his low-return bond and — if inclined to reinvest — looks for the highest return with safety currently available. Good money is not thrown after bad.

But we will never allow Berkshire to become some monolith that is overrun with committees, budget presentations and multiple layers of management. Instead, we plan to operate as a collection of separately-managed medium-sized and large businesses, most of whose decision-making occurs at the operating level. Charlie and I will limit ourselves to allocating capital, controlling enterprise risk, choosing managers and setting their compensation.

The stock market is a device for transferring money from the impatient to the patient.