The law of opinion refers to general precepts established by public opinion. It is the “law of fashion,” which may merely reflect what is in vogue or what is a group’s collective preference. In modern parlance we may call this “contemporary community standards.”

  • The Law of Fashion, John Locke

Dear fellow investors,

We’ve been thinking about John Locke’s “Law of Fashion” in the context of the U.S. common stock market. It reminded us of Luther Vandross’s wonderful song, “Always and Forever.” It is a love song and exactly the kind of love which investors give to long-term success stories when their share prices are in the maniacal/over-ownership phase.

Always and forever Each moment with you Is just like a dream to me That somehow came true, yeah

Look at the ten-year charts of Amazon, Apple and Microsoft:

These stock results are “just like a dream” to the investors who took that leap of faith ten years ago. Even a few years ago, like Warren Buffett’s Apple purchase, has been a “dream.”. Despite buying into something that had already gone through the roof, these stocks made common stock investor dreams “come true.”

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