Warren Buffet believes that investing in businesses is the best way to build wealth over time, so he has warned against dumping stocks, storing cash, and buying gold or bitcoins when war breaks out.
Alex Wong/Getty via BI The billionaire investor told CNBC in March of last year that he wouldn't sell any stocks because of the invasion of Ukraine.
He celebrated the fact that a stock he was actively buying had dropped in price. The investor said that he wouldn't cash out even if the conflict went into another Cold War or World War III.
If you tell me all of that is going to happen, I will still be buying the stock. If we went into a major war, the value of money would go down.
The last thing you want to do is hold money during a war.
During World War II, the US stock market rose, and has always marched higher over time, according to Warren Buffet.
American businesses are going to be worth more money.
Over the next 50 years, you will be better off owning productive assets than you will be owning pieces of paper, he said.
In his shareholder letter for the year, billionaire investor Warren Buffet said that he bought his first stock at age 11 when the US was in World War II.
The investor swapped his savings for Cities Service. He said it would have been worth $607,000 if he had invested it in a no-fee S&P 500 index fund.
He noted that if he had panicked and bought $115 worth of gold, its value would have grown to $4,200.
He told shareholders at the annual meeting that they had to think that America would do well over time and that they would overcome the current difficulties.
He said that you didn't have to pick out winning stocks. You had to make one investment decision in your life.
During the 2020 meeting, Buffett reiterated his faith in America's long-term prospects.
He said that he was convinced of it during the Cuban Missile Crisis, the financial crisis, and the American miracle.
The American Civil War, the Great Depression, and the COVID-19 epidemic disrupted US progress, but the country always comes out ahead, according to billionaire investor Warren Buffet.
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