Buffett: People always want a magic formula. They seek out smart investors, thinking somewhere they'll be given a little formula, plug it in, and make a lot of money, but that's not how it works.

What you want to do is look at how much cash a business will generate from now until judgment day (the termination of the business), then discount it at an appropriate rate, and buy it at a price much lower than that. And regardless of whether the money comes from banks, internet companies, or brick-and-mortar companies, the money is the same.

The question now is, what are the economic characteristics of internet companies, banks, or brick-and-mortar companies? They will tell you how much cash these companies will generate for a long time in the future. So, I don't have a single measure or a relative P/E.

In 1969, we bought all the shares of a bank; we bought a bank in Rockford, Illinois. Charlie and I visited several banks over a period of two to three years, we traveled around and found some very quirky banks, but we liked them. They were characterized by low asset risk, very cheap funding costs for deposits, and were priced so low that even Charlie and I could understand them.

Then in 1969, they passed the (Bank Holding Company Act), which stifled our opportunity to acquire all shares of banks further. So, we will study banks, and in the future, we will occasionally hold bank stocks, and we may buy stocks of other banks.

We have also seen a variety of banks go bankrupt. M.A. Schapiro said, "There are more banks than bankers." If you think about it, you'll understand what I mean.

Many people run banks in very unwise ways, but this creates opportunities for others, and over time, many banks have disappeared. Some other very prestigious institutions have been on the decline, much of which happened in the early 90s or late 80s.

I wouldn't look for a single metric like relative P/E to decide what to invest in; what you really need to look for and understand are companies that will generate cash from their business over a long period of time. Then, if you can buy it at a price significantly below its cash discounted value, that's enough, and it has nothing to do with what business it is engaged in.#加密市场反弹 #巨鲸JamesWynn动态 $BTC $BNB $SOL