week 2

    I read a article about economic data. The subtitle stated that Warren Buffett doesn't rely on economic forecasts to make investment decisions - neither should you. It's shocking for me. Most of the time, people think the economic would affect the profit of their investment. They thought that the companies operate with the prosperity and the recession of the economy. If the economic is robust, the companies will earn more money, which means it will have higher share price. This ideas have been deep rooted in my mind and that's what my dad thought, too. However, this article totally overturn what we seen as common sense: people forecast thing based on what's happening currently. The author said that markets move so quickly that it's impossible to invest or forecast successfully. Instead of predicting whether the company can get profit or not in the future, choosing a company that is capable enough to deal with any kind of economic conditions can ensure your investment to be able to survive all the time.