Thursday, 02 November 2023 04:47

'If people weren't so often wrong, we wouldn't be so rich' — Warren Buffett

Rate this item
(0 votes)

Legendary billionaire investor Warren Buffett is widely recognized as one of the greatest financial minds of this era. Over the course of several decades, he amassed a significant fortune through shrewd investment strategies and timeless wisdom.

During the 2015 Berkshire Hathaway Inc. annual meeting, Buffett shared his perspective on the curious dynamics of discussing the company's investments. He offered insights into why he refrains from "talking up" Berkshire's investments, shedding light on the intricacies of investment strategies that may not always align with Wall Street's expectations.

Buffett's remarks from the meeting were candid and reflected his no-nonsense approach to investing. He mentioned that it's not uncommon for people to inquire about the investments Berkshire Hathaway holds, with the assumption that the company would want to promote these holdings. However, Buffett was quick to dispel this notion. He made it clear that Berkshire Hathaway has no vested interest in encouraging others to buy the same investments it holds. Its perspective is quite the opposite.

Buffett explained that Berkshire, either through the company or its subsidiaries, is likely to continue buying stock. This means it stands to benefit from lower stock prices, making a rise in stock value less attractive. The rationale behind this is straightforward. If Berkshire Hathaway intends to acquire more of a particular investment in the coming years, it would be counterproductive for them to publicly promote the stock, causing its value to increase prematurely. By doing so, it would essentially be buying at a higher price in the future. This pragmatic approach underscores its long-term investment strategy.

Buffett acknowledged that this perspective diverges from the conventional wisdom of Wall Street. The common belief on Wall Street is that if you own a particular stock, it's in your best interest to see its value rise in the short term. People often refer to this as "talking your book."

 

Yahoo News

November 25, 2024

From zero to $10 billion annual transactions: How Jiji became one of Nigeria’s e-commerce leaders

When Jiji launched in 2014, it entered a competitive e-commerce market in Nigeria, joining the…
November 24, 2024

PDP governors urge Tinubu to review economic policies amid rising hardship

Governors elected on the platform of the Peoples Democratic Party (PDP) have called on President…
November 24, 2024

Older adults opened up about things they ‘took for granted’ in their 20s and 30s

Last month, we wrote a post where older adults from the BuzzFeed Community shared things…
November 16, 2024

Influencer eats pig feed in extreme attempt to save money

Popular Douyin streamer Kong Yufeng recently sparked controversy in China by eating pig feed on…
November 22, 2024

FG excited as pro-Biafra agitator Simon Ekpa arrested in Finland on terrorism charges

Simon Ekpa, the controversial leader of the pro-Biafra faction Autopilot, was arrested by Finnish authorities…
November 25, 2024

Here’s the latest as Israel-Hamas war enters Day 416

Hezbollah rockets land near Tel Aviv after large Israeli strike on Beirut Lebanon's Hezbollah movement…
November 21, 2024

Nigeria comes top in instant payment system inclusivity index in Africa

Nigeria’s instant payment system is projected to advance to the maturity inclusion spectrum ahead of…
October 27, 2024

Nigeria awarded 3-0 win over Libya after airport fiasco

Nigeria have been awarded a 3-0 victory over Libya, and three vital points, from their…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Prof Wale Are Olaitan: Editorial Consultant; Femi Kawonise: Head, Production & Administration; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2024 NewsScroll. All rights reserved.