Value Is What You Get

“Price is what you pay, value is what you get” is a well-known quote of Warren Buffett’s. It could not be more true this year when the best performing companies in our portfolios are the ones with the highest quality, strongest businesses and highest valuations.

Markets have been unsettled by fears of rising rates in the US, the end of the unprecedented liquidity provided by central banks, the slowdown in China and the problems in emerging markets. Globalization is over. The world is globalized and so are it’s fears. The Fed did not raise interest rates in September not so much because it was worried about the US economy but because of the impact it could have on the global economy. It was perhaps the first time the Fed has admitted that its policy was driven not by the US but by the world.

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