Warren Buffett recommends avoiding trading headlines.
“The real question is: ‘Has the 10-year or 20-year outlook for American businesses changed in the last 24 or 48 hours?’ said the famous billionaire value investor, Warren Buffett.
“You’ll notice many of the businesses we partially own, American Express, Coca-Cola — those are businesses and you don’t buy or sell your business based on today’s headlines” added Warren Buffett.
But what if COVID-19 is more than just a headline but a gamechanger that will accelerate what could now be an inevitable economic calamity?
“You’ll notice many of the businesses we partially own, American Express, Coca-Cola — those are businesses and you don’t buy or sell your business based on today’s headlines”
For anyone soon approaching retirement, a 10-year or 20-year outlook is way too long to wait for good times and stock recovery
“In the long run we are all dead” said John Maynard Keynes.
Warren Buffett recommends avoiding trading on headlines but in the same breath, he is saying don’t let a good crisis go to waste
“If it gives you a chance to buy something you like and you can buy it even cheaper then it’s your good luck” added Warren Buffett. So Warren Buffett is suggesting to buy value stocks on the cheap. In other words, use the bearish headlines to scoop up value stocks at a bargain.
“If it gives you a chance to buy something you like and you can buy it even cheaper then it’s your good luck”
Warren Buffett recommends avoid trading headlines and stay invested in the bubble of everything
“Equities would outperform bonds for years to come due to low tax rates,” wrote Warren Buffett in his annual newsletter. But action speaks louder than words as the billionaire investor seems to prefer cash. Warren Buffett has $128 billion in cash to burn.
“If something close to current rates should prevail over the coming decades and if corporate tax rates also remain near the low-level businesses now enjoy, it is almost certain that equities will over time perform far better than long-term, fixed-rate debt instruments” said Warren Buffett.
“it is the low taxes why investors should be in stocks, according to Warren Buffett” – The Wealth Training Company
So Warren Buffett is suggesting that the greatest monetary easing experiment in the history of finance, which is now conveniently overshadowed by a global pandemic virus is going to have no impact on companies and the economy in the medium, long-run. Moreover, it is the low taxes why investors should be in stocks, according to Warren Buffett (as he sits on a large cash mountain).
Do you buy that?
How many large-cap companies will survive the pending calamity, bearing in mind that the fourth revolution technologies, which creates the Amazon effect on businesses, has already cut the lifespan of corporations to just 18 years. That means investors’ time frame has to be shortened too.
Warren Buffett recommends avoiding trading on headlines but could the octogenarian investor who doesn’t use a computer, except for playing Bridge and claims to never have sent an email, be living in the digital dark?
Warren Buffett fails to endorse the benefit of cryptocurrencies. He also failed to see Amazon stock as a winner.
Has the Oracle of investing, Warren Buffett, become a Kodak investor of the digital age?
Is it time for him to bow out?