Billionaire investor Warren Buffet is cautioning investors to refrain from making rash decisions as the global pandemic continues to stall economic activity.
For the first time ever, Berkshire Hathaway hosted a virtual annual meeting in early May because of the COVID-19 pandemic and the inability to safely gather in Omaha, Nebraska. It was unquestionably a different experience for all those who attended, not to mention its CEO and mega-investor Warren Buffet.
Instead of tens of thousands of individuals traveling to Omaha to attend the event in person, they logged onto their computers to video conference. But no matter whether it’s in person or virtually, at some point during the annual meeting, all eyes turn to Buffet. And when it was Buffet’s time to address the meeting attendees, the message he delivered was one that was more cautious – yet remained hopeful and optimistic.
The bottom line is that all economists and investors have their predictions about what the near and long-term future will hold. But take it from Buffet, one of the world’s most successful investors, on what he sees happening down the road. Even with Berkshire Hathaway posting a $50 billion loss in Q1 of 2020, Buffet believes that America will always prevail through difficult times.
When Buffet has something to say, people listen. He’s earned that right after decades of proven investing success. He echoed as much about thinking long-term at the Berkshire Hathaway annual meeting, mostly due to the clout of uncertainty that still lingers on when the economy will be able to fully open up.
While short-term markets still appear dire based on these variables, not to mention a presidential election coming up later this year, he’s hopeful to see a bull market in the long-term, especially as medical treatments improve for treating those with serious COVID-19 complications. A stock index has recently been created by CNBC that measures about 30 companies developing treatments. Analysis shows that this new stock index performs consistent to the S&P 500.
Buffet isn’t alone in his optimistic view on the markets. Many other experts are encouraging Americans to start putting money into the market with the prospect of gaining a significant return on investment over time. Buffet and other are alike in their belief that the market is easy to predict over the long-term, as history indicates year-over-year growth. It’s why Buffet and others encourage investors not to panic when the market takes a downturn, especially during the coronavirus event where it’s hopeful that this downturn is only a temporary one until the economy can fully reopen and better treatments are developed to fight the virus.
The pandemic is going to slow to a halt at some point, and while there’s still some question of how everything is going to play out, any investing journey should be a marathon, not a sprint. That’s the tone that Buffet and so many others have been trying to strike lately when advising American investors.
As Buffet noted when he addressed the virtual attendees of the Berkshire Hathaway annual conference, America has faced difficult times in the past – and it has always prevailed stronger than before.