Four Laws of Motion

Warren Buffett’s annual letter to Berkshire Hathaway shareholders was released over the weekend. It's always interesting and always get widely reported upon. I found this closing statement interesting, especially when compared to Jim Cramer's madness on television.

Buffett's last statement in the annual letter:

"Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac’s talents didn’t extend to investing: He lost a bundle in the South Sea Bubble, explaining later, “I can calculate the movement of the stars, but not the madness of men.” If he had not been traumatized by this loss, Sir Isaac might well have gone on to discover the Fourth Law of Motion: For investors as a whole, returns decrease as motion increases."