Tag: Warren Buffett

The financial world is filled with constant noise—from Federal Reserve actions to trade developments and IMF forecasts. Yet, Warren Buffett, the legendary investor, pays no attention to headlines when making investment decisions.

“There’s always going to be good and bad news out there,” Buffett observed. Speaking at the 2012 Berkshire Hathaway Annual Meeting, he emphasized the importance of value over news cycles: “We look to value, and we don’t look to headlines at all. If we find a business that we think we understand, and we like the price at which it’s being offered, we buy it. And it doesn’t make any difference what the headlines are.”

For Buffett, short-term market chatter is irrelevant. His approach centers on understanding a business, evaluating its intrinsic value, and making decisions independent of external noise—a timeless lesson for investors.

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© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Warren Buffett, the legendary investor, has long cautioned against two common investment pitfalls: misunderstanding one’s investment and using borrowed money to leverage it. Combining these mistakes, he warns, often leads to disastrous outcomes.

“Any time you combine ignorance and borrowed money, you can get some pretty interesting consequences,” Buffett remarked during the 1994 Berkshire Hathaway Annual Meeting. He highlighted the historical risks of excessive borrowing, noting that “the ability to borrow enormous amounts of money combined with a chance to get either very rich or very poor very quickly has historically been a recipe for trouble at some point.”

Buffett’s advice serves as a timeless reminder for investors to thoroughly understand their investments and approach leverage with extreme caution.

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© 2025 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Gold is often touted as a reliable inflation hedge and a valuable investment, but should it be part of your portfolio? Legendary investor Warren Buffett remains skeptical, favoring productive assets like stocks over commodities such as gold.

In 2012, Buffett compared the performance of gold to Berkshire Hathaway, highlighting a stark contrast. When Berkshire was first acquired, gold was priced at $20 per ounce, while Berkshire shares were $15 each. By 2012, gold had risen to $1,600, but Berkshire’s A shares soared to $120,000. Nearly a decade later, gold stood at $1,798, while Berkshire shares surpassed $443,000.

For Buffett, the distinction lies in earning power. “It’s very hard for an unproductive investment to beat productive investments over any period of time,” he said at Berkshire Hathaway’s 2012 Annual Meeting. He predicted that over 50 years, not only would Berkshire outperform gold, but common stocks and even farmland would likely generate better returns.

Buffett’s insights suggest that productive, income-generating assets typically offer greater long-term growth than commodities that rely purely on price action.

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© 2025 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

For some investors, the rise of “meme stocks,” sky-high valuations on unprofitable companies, and other speculative behaviors signal a need to leave the market or adopt more conservative strategies. Warren Buffett, however, sees these trends as nothing new. Long before the meme stock era, Buffett observed speculation as a recurring part of the market, one that doesn’t influence his approach.

“We’re trying to find wonderful businesses,” Buffett remarked. “The fact that a part of the market is kind of screwy, that’s unimportant to us.” He and his partner Charlie Munger have seen countless cases of overpriced stocks, misleading promotions, and unsustainable promises. As Buffett said in 1996, “It always will go on. And it doesn’t make any difference to us.”

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© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Gold is often hailed as a reliable inflation hedge, but Warren Buffett has long challenged this view, emphasizing his preference for productive assets over non-productive ones like gold. Speaking at the 2005 Berkshire Hathaway Annual Meeting, Buffett highlighted why he believes gold’s utility as an investment is overrated.

“Historically, people saw gold as a refuge from declining currency value,” Buffett said. “But so is a barrel of oil, an acre of land, or a piece of Coca-Cola. Assets that serve a real purpose, like See’s Candy, will retain value regardless of the currency’s condition. If the dollar loses half its value, we’d simply sell See’s Candy for double the price and maintain the same real value.”

Buffett contrasted the tangible utility of productive businesses with gold, which he sees as speculative and lacking intrinsic value. Reflecting on his father’s enthusiasm for gold in the 1940s, Buffett noted that while gold prices rose from $35 an ounce to over $400 in 65 years, the compounded returns, after storage and insurance costs, were unimpressive.

For Buffett, the key lies in owning assets that produce goods or services people will always need, regardless of economic conditions. “We wouldn’t trade ownership of productive assets for a hunk of yellow metal,” he concluded.

Hear Buffett’s full explanation

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© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Warren Buffett has spent years learning from the mistakes of others, especially in the financial world. Along with his long-time business partner, Charlie Munger, Buffett has become a dedicated student of human folly, particularly in finance.

At the 2012 Berkshire Hathaway Annual Meeting, Buffett shared his fascination with studying financial disasters. “I’ve always been absolutely absorbed with reading about disasters,” he said, highlighting how understanding human error, especially in finance, has given him a strategic advantage over others. Buffett believes that many highly intelligent individuals often overlook basic human behavior, which can lead to disastrous decisions, as was seen in the 2008 financial crisis.

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© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

The world of investing is full of endless advice, opinions, and strategies, often making it difficult for investors to stay focused. However, Warren Buffett, one of the world’s most successful investors, has long emphasized the importance of consistency in building wealth. At the 1994 Berkshire Hathaway Annual Meeting, he put it simply: “You cannot get rich with a weather vane.”

“We don’t pay attention to what people say,” Buffett notes. Buffett’s point is that constantly shifting strategies based on market predictions or analysts’ opinions is a poor approach to investing. He believes in sticking to a well-considered, long-term strategy, regardless of market chatter. In his view, reacting to every new piece of investment advice, especially about the future direction of the economy or stock prices, is likely to lead to poor results. Instead, Buffett encourages investors to ignore the noise and stay committed to their own approach.

Hear Buffett’s full explanation

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© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

When it comes to investing in the banking sector, it’s important to recognize that not all banks should be treated the same. Warren Buffett, the renowned investor, has often highlighted this point. He emphasizes the idea that while there are many banks, not all are led by strong management.

Buffett explained that many banks have been poorly managed, leading to their downfall. However, this mismanagement can also create investment opportunities for those who are more discerning. Investors should, therefore, carefully evaluate the leadership and management of banks before making investment decisions.

“We’ve also seen all kinds of banks ruined. I think it was, what was the fellow? M.A. Schapiro, who came up with the statement, he said, ‘There are more banks than bankers,’” Warren Buffett said at the 2002 Berkshire Hathaway Annual Meeting, quoting investment banker Morris Schapiro. “And if you think about that a bit, you’ll see what I mean. There have been a lot of people that have run banks in a very injudicious manner, but that’s made for opportunities for other people.”

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© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Warren Buffett is well-known for his advice, “Be fearful when others are greedy and greedy when others are fearful,” but he cautions against simply adopting a contrarian mindset.

At the 2006 Berkshire Hathaway Annual Meeting, Buffett clarified that success in investing doesn’t come from merely going against the crowd. He emphasized that what truly matters is having the right facts and reasoning. “Being contrarian has no special virtue over being a trend follower,” Buffett explained. Instead, the key to sound investing is ensuring that your decisions are based on accurate information and thoughtful analysis.

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results