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Buffett : Regression to the mean
Submitted on 05/09/2006
"Over a short span, the markets can do anything, and anything can happen," Richard Russell wrote earlier this year. "Over an extended period of time, and I'm talking years - 2 plus 2 has always equaled 4. The surest rule in the stock market is the rule ... called 'regression to the mean'." But Russell's comments nevertheless help draw lessons from Buffett's long-term performance at the helm of Berkshire Hathaway.
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