What Warren Buffett advises investors during the pandemic

What Warren Buffett advises investors during the pandemic 1
What Warren Buffett advises investors during the pandemic 1

Berkshire Hathaway’s annual annual meeting is a rare opportunity for investors to hear advice directly from investing legend Warren Buffett.

Billionaire Warren Buffett moderates the 2020 annual general meeting of shareholders online. Photo: Bloomberg.

Buffett started the online shareholders’ meeting on May 2 with cautious forecasts about the US economy this year.

`In 2008-2009, the economic train went off track and there were a number of reasons that stemmed from the banking system. This time we just need to keep the train on the tracks and watch it,` Buffett said

Believing in the resilience of the US economy, the `oracle of Omaha` believes that it will be difficult to predict what will happen to the current stock market.

`Perhaps it’s a bit of an exaggeration, but I don’t trust anyone who claims to know how the markets will do tomorrow, next week, next month or next year. I know America will continue to move forward, but I

He emphasized that history has had events and the market has fluctuated very complicatedly, that was September 10, 2001 – one day before 9/11, that was a few months before Covid-19

For that reason, Buffett advises investors not to use borrowed money to invest in the context of the pandemic, which is having many `unusual` impacts on the global economy, including the United States.

What Warren Buffett advises investors during the pandemic

Billionaire Warren Buffett.

From an investment perspective, the head of Berkshire Hathaway believes that holding S&P 500 index fund certificates will be more reasonable in the current context, rather than investing in a single stock or group of stocks.

`There are a lot of people paying for advice they don’t really need. If you bet on America and keep it up for a decade, investing in a basket of indexes will be much better than buying bonds

A cautious view on stocks also explains the huge amount of cash that Berkshire Hathaway is holding.

`We haven’t bought anything because we don’t see anything interesting right now. Of course, we’re still ready to do a really big deal. I mean a deal worth 30, 40 or even 50 billion USD and we

So what about the other way around?

By the end of December 2019, Berkshire owned 10% of American Airlines;

`When we sell a certain stock, we usually sell it in its entirety. For businesses that are bought 100% of the shares, we will reduce it to 90 or 80%. If we like a certain business, we will

The billionaire said that the aviation industry has `fundamentally changed` because of Covid-19, as it is the industry most heavily impacted by the epidemic due to global travel restrictions.

Responding to questions about the reason for not buying back treasury shares, especially when Berkshire is holding a huge amount of cash, Buffett said that this is not a current priority for the board of directors.

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