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Buffett should follow his own advice, and stick to commenting on things that he understands.

Like... finance, economics and investments?

He seems to understand intrinsic value pretty well.

If there's one thing I've learned in my 45 years, it's that actually no one has figured yet what the term "intrinsic value" really means. The more you dig into that term it just ends up meaning "what someone else is willing to pay for it" blended together with some fuzzy subjective notions of morality.

No. What someone else will pay for something is extrinsic value.

Exactly, now just add some subjective moralizing to it and now you'll reach parity with most people's notion of "intrinsic value".

Perhaps, though:

> In The Theory of Investment Value, written over 50 years ago, John Burr Williams set forth the equation for value, which we condense here: The value of any stock, bond or business today is determined by the cash inflows and outflows - discounted at an appropriate interest rate - that can be expected to occur during the remaining life of the asset.

- Buffett in http://www.berkshirehathaway.com/letters/1992.html

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