What does Warren Buffett say about stocks?
Warren Buffett Explains, 'The Stock Doesn't Know You Own It' — Stocks Can't Love You Back And Your Feelings Don't Matter In The Stock Market — 'It's The Ultimate Cold Shoulder' In a lecture delivered at the University of Florida in 1998, Berkshire Hathaway Inc.
Warren Buffett Says the Stock Market Is Like a Casino — Investors Should Resist 'Foolishness' Berkshire Hathaway CEO Warren Buffett sees increased “casino-like behavior” in financial markets — and is reminding investors it's hard to beat the house gambling.
Although old-guard favorites such as American Express (AXP) and Coca-Cola (KO) still form the core of the portfolio, Buffett & Co. have taken a shine to names such as Apple (AAPL) and Amazon.com (AMZN), and even to lesser-known firms such as Snowflake (SNOW) and Nu Holdings (NU).
A 70/30 portfolio is an investment portfolio where 70% of investment capital is allocated to stocks and 30% to fixed-income securities, primarily bonds.
Key Takeaways
Buffett also reviews a company's profit margins to ensure they are healthy and growing. Buffett prefers companies that have a unique product or service that gives them a competitive advantage. As a value investor, he seeks out stocks that are undervalued relative to the company's intrinsic worth.
“Believe it or not, Mr. President, most Americans don't live off the stock market.” Fast forward to last Saturday, when Biden used X to tout “good news” for folks to start the weekend: “The stock market going strong is a sign of confidence in America's economy.”
Timing the stock market is difficult, but understanding when to trade stocks can help your portfolio. The best time of day to buy stocks is usually in the morning, shortly after the market opens. Mondays and Fridays tend to be good days to trade stocks, while the middle of the week is less volatile.
Gold. Buffett is also uninterested in gold. In his 2011 letter to shareholders, he noted that gold has two significant shortcomings, “being neither of much use nor procreative.” “If you own one ounce of gold for an eternity, you will still own one ounce at its end.
Buffett follows the Benjamin Graham school of value investing which looks for securities with prices that are unjustifiably low based on their intrinsic worth. Buffett looks at companies as a whole rather than focusing on the supply-and-demand intricacies of the stock market.
| Ticker | Company | % Portfolio |
|---|---|---|
| MSFT | Microsoft Corp. | 33.98% |
| BRK.B | Berkshire Hathaway Inc. | 16.80% |
| CNI | Canadian National Railway Co. | 16.29% |
| WM | Waste Management Inc. | 14.92% |
What is the Buffett's two list rule?
Buffett presented a three-step exercise to help streamline his focus. The first step was to write down his top 25 career goals. In the second step, Buffett told Flint to identify his top five goals from the list. In the final step, Flint had two lists: the top five goals (List A) and the remaining 20 (List B).
- Podcast Discussion: Warren Buffett's 4 Rules to Investing.
- Rule 1: Vigilant Leadership.
- Rule 2: Long-Term Prospects.
- Rule 3: Company Stability and Understanding.
- Rule 4: Understanding Intrinsic Value.
“One bequest provides that cash will be delivered to a trustee for my wife's benefit,” he wrote. “My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund.”
Indeed, the Oracle of Omaha has said that he spends “five or six hours a day” reading books and newspapers. And while it may be difficult to set aside nearly a full work day's worth of hours to read, it recently got a little bit easier to consume information like Warren Buffett.
Approach your investments with a long-term mindset.
One of the most important Warren Buffett quotes on investing that you can take in is, "If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes."
Buffett often makes use of the Rule of 72, a straightforward formula to estimate the time required for an investment to double in value. This rule is determined by dividing 72 by the annual rate of return.
Stocks did well under Trump until the COVID pandemic hit in February 2020. Through each president's first three years, in fact, the Trump stock market outperformed the Biden market by about 5 percentage points.
“October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August, and February.”
And the shocking leader of the bunch? President Calvin Coolidge, who took office in 1923, whose stock price performance change was a whopping 208.52%, for an average monthly return of 1.74%. That's the largest for any president since the start of the 20th century.
What Is the 11am Rule in Trading? If a trending security makes a new high of day between 11:15-11:30 am EST, there's a 75% probability of closing within 1% of the HOD.
What stock will boom in 2024?
| Stock | Expected Change in Stock Price* |
|---|---|
| Tesla Inc. (TSLA) | 61% |
| Mastercard Inc. (MA) | 14.2% |
| Salesforce Inc. (CRM) | 7.2% |
| Advanced Micro Devices Inc. (AMD) | 11.3% |
Traders that follow the 10 a.m. rule think a stock's price trajectory is relatively set for the day by the end of that half-hour. For example, if a stock closed at $40 the previous day, opened at $42 the next, and reached $43 by 10 a.m., this would indicate that the stock is likely to remain above $42 by market close.
It might come as a surprise. But Warren Buffett's biggest investing mistake was purchasing Berkshire Hathaway in 1962. At that time, Berkshire Hathaway was a failing textile business.
- Invest within your circle of competence.
- Think like a business owner when buying equities.
- Buy at inexpensive prices to provide a margin of safety.
- If you can't afford to invest yet, don't. It's true that starting to invest early can give your investments more time to grow over the long term. ...
- Set your investment expectations. ...
- Understand your investment. ...
- Diversify. ...
- Take a long-term view. ...
- Keep on top of your investments.
