Warren Buffet enters the COVID19 cris with US$128 billion in cold, hard cash. While analysts were poking fun at the old fuddy duddy who didn’t know what he was doing, Buffet was accumulating his biggest cash war chest ever.
How does he do it ?
- Buffet plays his own sharemarket game due to enormous reserves of patience and preparation – he ignores the ‘noisy’ commentators and critics.
- Fear of missing out is something Buffet got over long ago – this powerful force can generate astonishingly large losses by following the crowd.
- Buy low, sell high while many of us buy at times of great excitement and sell the minute things turn nasty.
1 + 2 + 3 = VALUE INVESTING.