Words of Wisdom (7th May 2020)

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May 072020

Warren Buffett’s Advice (Berkshire Hathaway AGM)

Every year, thousands of Berkshire hathaway shareholders flock to listen to the Warren Buffett at the AGM. This year, due to the Covid-19 restrictions, it was a ‘virtual event’.

Here are a couple of clips, that I think contain good advice for any DIY-Investor…

Being a “farmer”…

Particularly relevent IMO is the section, where Buffett states…

So if you had that farm, and your neighbor offered you $2,000 an acre on Monday, $1,200 an acre the next day, and maybe then $800 an acre the day after, that shouldn’t change your evaluation of the farm’s potential.

“Are you going to let this guy drive you into thinking: ‘I better sell because this number keeps coming in lower all the time?’” he said.

Bringing the right psychological approach to owning common stocks is important: Betting on that farm may be better than listening to the neighboring farmer

On handling fear…

Do Your Own Research (DYOR)!

Mick (7th May 2020)