Because high-quality stocks might decline in the week ahead if we are unable to avert the fiscal cliff tax hikes, I think it can be useful to keep in mind this classic quote from Warren Buffett's 1990 Letter to Shareholders of Berkshire Hathaway (BRK.B):
We will be buying businesses - or small parts of businesses, called stocks - year in, year out as long as I live…Given these intentions, declining prices for businesses benefit us, and rising prices hurt us. The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer.
Source: Seeking Alpha
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