Market Pessimism & the Art of Patient Capital | Buffett's 1990 Investment Masterclass

Warren Buffett's 1990 letter arrives during economic uncertainty and demonstrates masterful contrarian investing. Writing during the savings and loan crisis and economic recession, Buffett uses market pessimism to make exceptional investments, most notably a major stake in Wells Fargo when banking stocks were being shunned.

The letter refines the "look-through earnings" concept, showing how to measure true earning power beyond reported dividends. Buffett delivers a prescient warning about junk bond mania, explaining how excessive leverage creates business fragility. His investment in Wells Fargo during industry-wide panic exemplifies how extraordinary opportunities arise when quality companies face unwarranted pessimism.

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