Interest rates are not a construct but a representation of the opportunity cost of productive assets—if you own a productive asset and lend it to someone, you must receive compensation for the production you're forgoing, a principle that applied even before money existed and continues to apply when rates approach zero.

definitionpending

Speaker

Chris Davis

Evidence Quote

if you think about what interest rates are they aren't a a construct they what they represent is that I own a productive asset and if I'm giving that to you for some period of time I'm not getting the the value of that production so you have to pay me something

Source

Value Investor Chris Davis on Berkshire Hathaway and Stock-Picking | At Barron'sBarron's
Created: 8/11/2026, 7:57:58 AM

My Notes

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