"Buffett notes [[Phil Fisher]]'s suggestion that **a company is like a restaurant, offering a menu that attracts people with particular tastes**. Berkshire's long-term menu emphasizes that the costs of trading activity can impair long-term results. Indeed, Buffett estimates that the transaction costs of actively traded stocks—broker commissions and market-maker spreads—often amount to 10% or more of earnings. Avoiding or minimizing such costs is necessary for long-term investment success, and Berkshire's listing on the New York Stock Exchange helped contain those costs." ([Location 451](https://readwise.io/to_kindle?action=open&asin=B01J2SLA5O&location=451)) *** **Tags** — [[quotes]], **See Also** -- [[Warren Buffett]], [[Charlie Munger]] **Source** — [[202308141129 — B — The Essays of Warren Buffett]]