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Warren Buffett Didn’t Mince Market Words — My Biggest Takeaways

When you are 91 years old, a living legend in your profession and one of the richest people in the world, you can have your say.

And when you are Warren Buffett, people tend to listen. This is, after all, the man who has increased the value of his company at an incredible rate 3,641,613% since 1964.

Berkshire Hathaway Inc. (Symbol: BRK.A) He had just summed up his annual meeting, and Buffett came out swinging this year.

Let’s go over some of the salient moments and see what wisdom we can glean from Omaha’s oracle.

Buffett: Better to be “sane” than “smart”

Warren Buffett is intelligent, and his wit and wisdom are legendary. But he is also the first to tell you that his success is No Due to supreme intellect.

Centuries ago, Buffett said, “Investments This is not a game where the guy with 160 IQ beats the guy with 130 IQ. “

Success here is more about temperament.

And Buffett reiterated that idea at the annual meeting, noting that Berkshire’s success is “not because we’re smart. It’s because we’re sane.

Buffett has almost the same ability as a robot to maintain his emotions, even through raging bull markets and cruel bear markets. Not every investment succeeds him, but his temperament allows him to stay in the game.

I will note that the secret to the success of our Adam O’Dell is also temperament.

Adam is a smart guy, but that’s it No Why he makes money. He wins this game because he builds systems and has the discipline to follow them.

And if you want an entry point to this investment path, Click here to check Green Zone Fortunes.

Adam’s system prevents any stock recommendation within our model portfolio. And this allowed us to target some strong market trends with our stock recommendations.

To learn more about a person’s approach to the mega-trend of renewable energy, Click here to watch his “Infinite Energy” presentation.

The market is a “gambling salon”

Not everything Buffett says is profound.

Sometimes he says the obvious, as he did when he noted that the stock market is a “gambling institute.” Buffett went on to say:

Wall Street makes money, one way or another, and catches the crumbs falling from the table of capitalism. They do not make money unless people do things, and they get some of them. “They make a lot more money when people gamble than when they invest.”

There’s a difference. In the stock market, unlike in Las Vegas, you reserve the right to buy and own good businesses.

And while Buffett may view the casino with contempt, the bad decisions of others are what allow him to sweep and buy good business when they go on sale.

Buffett Becoming Aggressive – Should We?

I listen to what Buffett says, but I’m much more interested in what he does. Acts speak much louder than words.

So it is worth noting that Buffett went on a buying spree while the stock market was selling. Berkshire Hathaway invested $ 41 billion net in the first quarter. This is the most aggressive Buffet & co. Have been since the 2008 collapse.

As for what he buys, it runs on the whole ladder.

Buffett and Berkshire have been targeting insurance companies for years, so it makes sense that he bought the Alleghany Corp. insurance concern. (Symbol: י). But he also added to his positions in the energy sector with additional investments in Chevron Corp. (NYSE: CVX) And Occidental Petroleum Corp. (Symbol: Oxy), And made a large investment in video game maker Activision Blizzard Inc. (NASDAQ: ATVI).

So what lessons do we learn from this? Should we see recent volatility as an opportunity to jump in with both feet?

Maybe. But that’s not what Buffett does.

Yes, he is aggressively buying for the first time in years. But he ended the quarter with $ 106 billion in cold cash, meaning he used only a third of the cash he had at the beginning of the quarter.

Look: You’re not Warren Buffett, and neither am I. What makes sense for the oracle may not make sense to us.

The Bottom Line: Market volatility has created a lot of potential opportunities, but we should not rush here.

Buffett systematically slices his cash, keeping a lot of reserves. He did not run to the doors, nor do we.

He remains sober, and in his own words, “sane” about the way he buys the dips.

We will be smart to do the same.

To ensure profits,

Charles Sizemore, co-editor, Green Zone Fortunes

Charles Sizemore Is the co – editor of Green Zone Fortunes And specializes in income and retirement issues. He is also a frequent guest on CNBC, Bloomberg and Fox Business.

Warren Buffett Didn’t Mince Market Words — My Biggest Takeaways Source link Warren Buffett Didn’t Mince Market Words — My Biggest Takeaways

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