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Long-Term Investing in Great Businesses and the Importance of Incentives
In the long run, success in investing lies in great businesses despite temporary market fluctuations. Warren Buffett learned the importance of incentives, realizing the conflict of recommending long-term investments while being a stockbroker. Transitioning from brokering, Buffett joined Benjamin Graham's team to focus on undervalued 'cigar butt' stocks, a strategy Graham knew had risks but also rewards through diversification.