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Buffett downplays recent market volatility as ‘really nothing,’ saying it’s part of investing (2 Viewers)

Metric Mouse

Metric Mouse

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“What has happened in the last 30, 45 days … is really nothing,” the Berkshire Hathaway
CEO said during the conglomerate’s annual meeting.
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Given that, he said the U.S. stock market’s recent action should not be characterized as a “huge” move.

“This has not been a dramatic bear market or anything of the sort,” Buffett said.
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Typical billonaire. If you think he is actually smarter and a better investor, then follow his advice I guess.

If not, then there is certainly reason to discount him and worry about recent stock market moves.
 
I don't think his statement was specifically about Trump's recent trade issues rather it's just commentary on market volatility in general. Your tolerance for risk probably isn't as high as you think it is. Choose an asset allocation such that you don't panic and go crazy during a downturn.
 
Metric Mouse said:





Typical billonaire. If you think he is actually smarter and a better investor, then follow his advice I guess.

If not, then there is certainly reason to discount him and worry about recent stock market moves.
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Buy what you "know and understand"
Keep risk as small as possible
Dont be stupid with money people have trusted you with

As he said today in the meeting, his job has always been to protect the assets assigned to him
And the biggest difference between how Berkshire does things, and other so called money managers, is that Buffett and Munger had their wealth tied directly to the company....they had skin in the game

Do i think he is the "best" out there? dunno....but i own class B shares and have for like 15 years....i read his annual report, and have been twice to his annual meetings.....i wish every companies C suites worked like they do, and were as transparent with both their winners, and their mistakes....

He will go down in history as one of the sages of the financial world, and imo, it is well deserved
 
If your time horizon is forever, as Buffett's is, then he's correct.

The main reason the short-term market volatility is bad is because it's entirely at the whim of one manchild, not because there is anything terribly wrong with the American economy (aside from the self-imposed trade war that Trump started).

I'm not panic selling, nor am I rushing out to buy lots more. I'm just continuing to buy at my usual rate. If you don't need to withdraw money anytime soon, that's almost always the best course of action, no matter what is happening in the news.
 
gdgyva said:
Buy what you "know and understand"
Keep risk as small as possible
Dont be stupid with money people have trusted you with

As he said today in the meeting, his job has always been to protect the assets assigned to him
And the biggest difference between how Berkshire does things, and other so called money managers, is that Buffett and Munger had their wealth tied directly to the company....they had skin in the game

Do i think he is the "best" out there? dunno....but i own class B shares and have for like 15 years....i read his annual report, and have been twice to his annual meetings.....i wish every companies C suites worked like they do, and were as transparent with both their winners, and their mistakes....

He will go down in history as one of the sages of the financial world, and imo, it is well deserved
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Yeah, I agree. It's hard to dismiss his advice.
 
I was wondering if somebody of note would be recognized in this Community as explaining that all the disaster posts around here about the economy because of the stock exchanges doing their usual beach ball bouncing up-and-down and over-here-over-there --- well, all those we-are-doomed posts were sort of weird. I think that Buffett fella is one of the better ones at playing that kind of beach ball.

Odd, isn't it, how those folks that grow our food can handle the ups-and-downs in market prices for a given agricultural product a lot better than those that stare at market index panels.
 
Kind of easy for a guy worth $168 billion.
For those of us whose net worth is a bit lower than his it is more than nothing.
 
Gatsby said:
If your time horizon is forever, as Buffett's is, then he's correct.

The main reason the short-term market volatility is bad is because it's entirely at the whim of one manchild,
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Didn't take long to devolve to orange man bad.
Gatsby said:
not because there is anything terribly wrong with the American economy (aside from the self-imposed trade war that Trump started).

I'm not panic selling, nor am I rushing out to buy lots more. I'm just continuing to buy at my usual rate. If you don't need to withdraw money anytime soon, that's almost always the best course of action, no matter what is happening in the news.
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KingLeo said:
Kind of easy for a guy worth $168 billion.
For those of us whose net worth is a bit lower than his it is more than nothing.
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The s and p 500 is up 9.77 year over year, and 12% over the past month.

How much more money does one need every year?
 
Metric Mouse said:
The s and p 500 is up 9.77 year over year, and 12% over the past month.

How much more money does one need every year?
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How much is the individual portfolio of a person that was planning on retiring soon still down from where it was in January?

The S&P is still down from when Trump took office. Not up.
 
BirdinHand said:
How much is the individual portfolio of a person that was planning on retiring soon still down from where it was in January?

The S&P is still down from when Trump took office. Not up.
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I think this is Buffets point - the stock market goes up and down in the short term; if a couple of down months is the end of the world, then the end of the world happens several times a decade.

If one is only content with having more money now than they did last year, or last month, then it will be fine.

Now if a person thinks they can do better financially than Warren Buffet, and his advice and experience is simply some old billonaire yelling at clouds, then they would agree with my first post.
 
easy Buffett .... don't get in the sights of liberals or they'll terrorize your business .... toe the line buddy, toe the line
 
He's right. And if the recent volatility has you sweating & selling then you had too much in equities to begin with. If you backtest a 100% equity portfolio going back to the late 1800s, a 3.5% withdrawal rate, adjusted for inflation, would last you 50+ years and that's worst case scenario.
 
BirdinHand said:
How much is the individual portfolio of a person that was planning on retiring soon still down from where it was in January?

The S&P is still down from when Trump took office. Not up.
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If you were planning on retiring SOON, and had most of your portfolio in equities, then it wasnt Trump that should be called dumb or stupid

There is a reason targeted retirement portfolios switch from equities to bonds and other safer investments the closer you get to your retirement age

As far as losing a portion over 3 months, it happens....and has happened MANY MANY times in the past.....and will happen again in the future. Markets are fickle, and can rise or fall on news, opinions, and so many other factors. But for the LONG term, it is a great place to grow wealth.
 
gdgyva said:
If you were planning on retiring SOON, and had most of your portfolio in equities, then it wasnt Trump that should be called dumb or stupid

There is a reason targeted retirement portfolios switch from equities to bonds and other safer investments the closer you get to your retirement age

As far as losing a portion over 3 months, it happens....and has happened MANY MANY times in the past.....and will happen again in the future. Markets are fickle, and can rise or fall on news, opinions, and so many other factors. But for the LONG term, it is a great place to grow wealth.
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The market has reacted to TRUMP.

Not an external factor - Trump did this.
 
Comments like his are the reason I kept 40% equities and moved to bonds and CDs back in March. The market may be going up right now but the S&P is still down 7% and IMO most of the turbulence is in front of us. I took an early retirement in 2020 and I want to preserve my wealth. I don't worry about timing the market so I will enter again when someone who doesn't want to tear down the country is in office.
 
stealthycat said:
easy Buffett .... don't get in the sights of liberals or they'll terrorize your business .... toe the line buddy, toe the line
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You mean to say people are choosing how they spend their own money?

What a bunch of utter bastards!
That's completely unamerican!
 
When Buffet dies, his tombstone will say "Buy the dip".
 
noonereal said:
Why not give the whole story?
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I posted the whole story...

He didn't think market movements of the past few months were were anything to worry about.

Do you disagree with the billonaire?
 
BirdinHand said:
The market has reacted to TRUMP.

Not an external factor - Trump did this.
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It went up 12% in the last month because of Trump?
Really?

MAGA is really grasping at straws, aren't you?
 
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