Analysis
The statement is a direct quote from Warren Buffett's 1995 shareholder letter, where he used it to describe how market downturns reveal weak businesses or investors. The metaphor highlights the exposure of poor decisions or lack of preparation when conditions worsen. Multiple reputable sources, including Berkshire Hathaway's archives, confirm this attribution.
Background
Warren Buffett is the longtime CEO of Berkshire Hathaway and is known for his folksy yet insightful analogies about investing and business. The 1995 letter is one of his most frequently cited, as it contains several well-known aphorisms. The quote has since become a staple in financial and business discourse.
Verdict summary
Warren Buffett did include this quote in his 1995 Berkshire Hathaway shareholder letter.