? Earnings bonanza: There were a ton of companies that reported quarterly results and shares moved. The wrong question - and the right one - to ask about earnings headwinds?ħ00+ reasons why S&P 500 index investing isn't very 'passive'? ($)
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'Past performance is no guarantee of future results,' charted ?īusinesses are investing in themselves at a record rate ? ($)
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economic strength caused GDP to decline in Q1 ? ($) “I’ll report to you in 20 years whether it’s happened or not.” It’s worth noting that since 1926, there’s never been a 20-year stretch during which the stock market didn’t generate a positive return. “Over the next 20 years, I would expect to have more capital gains than not,” Buffett quipped. For the month, the S&P was down 8.8%, its worst month since March 2020 and worst April since 1970.įortunately for investors like Buffett, what happens in the weeks following a buy doesn’t make or break a trade. These comments come as market volatility remains very high. "I don't think we've ever made a decision where either one of us has either said or been thinking: ‘We should buy or sell based on what the market is going to do,’" Buffett said. “The low was in March… I totally missed that opportunity.”īuffett reiterated that his trades are informed by the long-term prospects of the businesses he’s buying, not his short-term expectations for the market or the economy. “If I had any sense of timing and waited six months until-” he started to say. “It was a really dumb time, and I wrote an article for the New York Times on ‘Buy American,’” he said.Īfter that article was published, the S&P 500 fell another 26% before bottoming in March 2009. This turned out to be months before the market would eventually reach a low.
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He reflected back on the financial crisis, noting that Berkshire “spent about $15 or $16 billion” buying stocks around the time Lehman Brothers had failed in fall of 2008. “We haven't the faintest idea what the stock market is gonna do when it opens on Monday - we never have,” Buffett said. However, he made clear on Saturday that he is no market timer.
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Indeed, one of his most prominent calls to buy stocks occurred during some of the darkest hours of the financial crisis. The first quarter saw the S&P 500 plummet by as much as 13.7%, hitting a low of 4,114 on February 24, before recovering a bit to end the quarter down 4.9%.īerkshire’s trading activity seems to echo one of Buffett’s most famous quotes: “Be fearful when others are greedy, and be greedy when others are fearful.”īut, don’t assume that this buying is Buffett signaling to the world he believes the stock market has bottomed.īuffett’s reputation as a value-oriented investor with a track record of market-beating returns may have some folks thinking the “Oracle of Omaha” is a successful market timer (i.e., someone who makes trades based on the belief that prices have peaked or hit rock bottom). “Now we’re back, somewhat, in our more lethargic mood.” “We spent $40 billion in a hurry, in three weeks,” Buffett said. Berkshire spent a whopping $4.6 billion on March 4 alone. In a slide presented at Berkshire Hathaway’s annual shareholders meeting on Saturday, he noted the buying included a stretch between February 21 to March 15 where the company plowed $41.0 billion into the market. On Saturday, Buffett revealed that the company bought $51.1 billion worth of stocks during the first quarter. Warren Buffett’s Berkshire Hathaway loaded up on stocks as stock prices fell earlier this year. Warren Buffett (L) and Charlie Munger (R) at the Berkshire Hathaway Shareholders Meeting in Omaha, Nebraska on April 30, 2022.