Yeah, well, ... 'micro', 'macro', 'shmakro', 'shmikro', ... whatever....
The thing is, you buy a Resource based company, you know that there's a built in RISK of the international price of its commodity taking a dive or, hopefully, a surge. That's the thing about (a)'COMMODITY TYPE BUSINESSES'. Management of EXXON, BP, Mobil, VALE, etc.., however competent and experienced, can do very little when world oil or iron ore prices fall through the floor from $100 to $30, etc ....
However, people will still be buying and drinking Coke, Pepsi, Budweiser, etc.., They will still be brushing their teeth, shaving, etc.., etc.., via P&G/Gillette, Colgate, etc..., They will still have their kids and even adults watching Disney, etc.., etc...
In other words they will be still be buying from (b)'CONSUMER MONOPOLIES' long after we're all pushing up daisies. Consumer Monopolies control the prices meted out to the merchants, so business moves along nicely. The "price fight" that takes place after that between merchants is their problem.
Yes, maybe, according to some, Buffett hasn't got his 'macro' right every time, but he sure as hell knows the difference between (a) and (b) above, and when to buy more of (b) when "Mr. Market" gets 'neurotic' and 'panic stricken' .... "you pays your money and you takes your choice" .... |