“You pay a high price for a cheery consensus.” No wonder everything always comes back to Warren Buffett. How can you impart more investing wisdom about the importance of getting the valuation right than those nine words?
That quote was on my mind when I reviewed the various possibilities for someone purchasing shares of BP at different price points since 2010. An incorrect intuition that I sometimes have is the notion that, over medium periods of time, investors in the same corporation ought to earn somewhat similar results. If you buy shares of BP, you are the owner of an entity producing 1.2 million barrels of oil and oil equivalents per day, and whatever the business results of that may be, that is going to be a close approximation of what you get.