Recently, I read an e book called 'Alchemy of Finance'. This is a book written by George Soros, a famous trader/investor( btw his net worth is $9 billion). One of the concepts he heavily emphasised is 'Reflexivity'. Reflexivity is a concept in which the prices of something( be it houses, stocks or currency) affect the fundamentals of it. This is a different school of thought as compared to the one that warren buffet has been advocating. Maybe, both school of thoughts are interrelated because when buffet buy things he always introduce 'margin of safety' as he feared that the prices might affect the fundamentals.
And most importantly----------------------ORD LOH!!!!!!!!!!!!!!!!!!!!!
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