Investing legend Warren Buffett warns against mistaking luck for skill in booming markets, comparing it to a rising tide lifting all yachts. Buffett’s 1995 statement on Berkshire Hathaway’s massive gains emphasizes the danger of false positives and the risks of attributing success to intelligence rather than favorable conditions. He stresses the importance of enduring success across decades rather than temporary gains in bull markets. Buffett’s refusal to celebrate easy wins serves as a reminder of the importance of humility and risk management in investing. The lesson remains relevant in today’s market of extended rallies and thematic investing.

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