Warren Buffet believes investing in businesses is the best way to build wealth over time, as he cautions against dumping stocks, storing cash, and buying gold when war breaks out
In March of last year, the billionaire investor told CNBC that Russia's invasion of Ukraine wouldn't prompt him to sell any stocks.
He said that he would be more likely to buy stocks if they were cheaper. The investor said that he wouldn't cash out even if the conflict got worse.
He said he would still be buying the stock if you told him all of that would happen. Over time, you will invest your money in something. If we were to go into a big war, the value of money would go down.
"That's happened in almost every war that I'm aware of," said the investor. You don't want to hold money during a war.
The US stock market rose during World War II and had marched higher over time, according to Warren Buffet.
American businesses will be worth more money. That money won't buy you as much as the dollar will.
He said you will be better off owning productive assets over the next 50 years than you will be owning paper.
He recalled in his shareholder letter that he bought his first stock when he was 11 years old.
He swapped his savings for shares of the service. He said it would have been worth $607,000 if he'd reinvested the money in the S&P 500 index fund.
If he had panicked and bought $115 worth of gold, it would have been worth $4,200.
He said at the annual shareholder meeting that he wanted to invest in an index fund in 1942 because he thought America would do well over time.
He said that you didn't have to pick winners. There was no need to pick out a winning time. You had to make a decision in your life.
During the 2020 meeting, he reiterated his faith in America.
In World War II, I was convinced that this was true. "During the Cuban Missile Crisis, 9/11, the financial crisis, and the American miracle, the American magic, has always prevailed, and it will do so again," he stated.
The Great Depression and the Civil War disrupted US progress, but the country always comes out ahead, according to billionaire investor Warren Buffet. He told them to never bet against America.
Warren Buffet is facing inflation and interest rate hikes. Luis Torras, a veteran analyst, breaks down how it will overcome those challenges.
All Rights Reserved © 2024
