Quotes on Earnings

All experienced investors know that earning power exerts a far more potent influence over stock prices than does property value.

We don’t pay attention to quarterly earnings or consensus forecasts. That’s performance investing, not value investing.

Wall Street tends to overreact when it gets worried about earnings.

Earnings of most corporations pass through a life cycle which, like the human cycle, has three important phases -- growth, maturity, and decadence.

Once a business is well established, the greatest opportunity for gain is afforded during the period of growth in earning power. The risk factor increases when maturity is reached and decadence begins.

There is nothing at all conservative, in my opinion, about speculating as to just how high a multiplier a greedy and capricious public will put on earnings.

The inescapable fact is that the value of an asset, whatever its character, cannot over the long term grow faster than its earnings do.

History shows us, over and over, that bull markets can go well beyond rational valuation levels as long as the outlook for future earnings is positive.

Equities are a claim on uncertain future earnings.

It's not earnings changes that cause stock price changes, but earnings changes that come as a surprise.

I don't think people understand there's 100% correlation with what happens to a company's earnings over several years and what happens to the stock.

I can't say enough about the fact that earnings are the key to success in investing in stocks. No matter what happens to the market, the earnings will determine the results.

The history of business the world over is full of examples of businesses which have grown from modest beginnings to stupendous earning power.

If you don't believe corporate profits will continue to rise, and you can't stomach a decline in the market, don't buy stocks or equity mutual funds.

Ultimately, to be an investor in stocks, you have to believe that American business has a decent future, as well as business worldwide, and that corporations will continue to increase their profits.

As corporate profits increase, corporations become more valuable, and sooner or later, their shares will sell for a higher price.

What makes stocks valuable in the long run isn't "the market." It's the profitability of the shares in the companies you own.

It's in the nature of Wall Street to imagine that whenever a company sets a record for earnings, it will go on setting new ones.

The best time to get involved with cyclicals is when the economy is at its weakest, earnings are at their lowest, and public sentiment is at its bleakest.

Behind all the smoke and noise on the market's surface, it's important to remember that companies -- small, medium, and large -- make up the market's backbone. And corporate earnings drive stock prices.

Wall Street has this wonderful business about how to create transactions. They set up what we believe are false expectations, and that’s what I call the “beat by a penny, missed by a penny syndrome.”

If you are selling because of a missed earnings report or the trend of the market or something, you've stopped looking at the rate of return the company can achieve over time.

Our accounting is set to maximize cash flow, not reported earnings. Smoothing reported earnings just has to take a backseat.