Buffett's Snickers Test
Share
Morgan Housel shares a story about Warren Buffett's perspective during the 2009 financial crisis.
"I had lunch with a guy who's very close friends with Warren Buffett. This guy was driving around with Buffett in his car in Omaha in 2009. The economy was a wreck, businesses were boarded up, it was like the economic apocalypse.
This guy says to Warren, 'How do we ever recover from this? How is the world ever gonna be the same?'
Warren said, 'Do you know what the best selling candy bar was in 1962?' The guy said 'No.' Warren says, 'Snickers.' Then Buffett asks, 'Do you know what the best selling candy bar is today?' The guy says 'No.' Warren says, 'Snickers.'
The premise being: don't worry about how we're gonna change - find something that does not change and bet on that."
Morgan Housel
Partner at Collaborative Fund and former columnist for The Motley Fool and The Wall Street Journal. Author of bestsellers "The Psychology of Money" and "Same as Ever".
Two-time winner of the Best in Business Award and finalist for the Gerald Loeb Award for Distinguished Business and Financial Journalism.