Warren Buffet’s strategy for success
Buffet’s take on the current market scenario
They talked about a wide range of issues from high inflation rates to cryptocurrencies. They also talked about how the market has become a “gambling parlor”. Buffet praised the federal reserve’s chairman Jarome Powell for slashing the fed rates during the start of the Covid-19, which he believes helped in fighting the pandemic more effectively.
“It’s not because we’re smart. It’s because we’re sane.”
When a questioner complemented Buffet for his ability to read the market, he snubbed the claim by saying that he can never tell how the market will move in the short term. He reiterated that Berkshire Hathaway’s long-term strategy and rational decisions are the reason behind its success. He said, “It’s not because we’re smart. It’s because we’re sane.”
Berkshire Hathaway’s Investments
Earlier during the day, Berkshire reported a decline in its cash from $147 billion to $106 billion in the first quarter. Buffet in his annual letter on Feb 26 revealed that they are not able to find anything at an attractive price but they went on spending $40 billion in the next two weeks. Buffet revealed that they have increased their share in the oil giant Chevron from $4.5 billion to $26 billion making it the fourth-biggest investment of Berkshire Hathaway.
Warrant Buffet talked about his investment in Activision Blizzard as an ‘arbitrage’ bet after Microsoft announced its plan to acquire Activision. He invested the money believing that the deal will be done.
Buffet on Cryptos
Both Warren Buffet and Charlie Munger talked about their lack of faith in the viability of cryptocurrencies. They reiterated that the cryptocurrency has no real value and will eventually become zero someday. They also criticized the American government for not banning the currency as China did.
“Berkshire is built to forever. There is no finish point.”
Buffet has reassured the investors that Berkshire Hathaway will still be successful even after he is gone because of its long-term strategy that is embedded in its culture. He said, “Berkshire is built to forever. There is no finish point.”