Warren Buffett warns shareholders not to listen to Wall Street experts

OMAHA, Neb. (AP) — Warren Buffett credited his longtime partner — the late Charlie Munger — with being the architect of the Berkshire Hathaway conglomerate he has led and warned shareholders in his letter annual report published on Saturday that they do not listen to Wall Street experts and financial advisors who urge them to operate urgently.

Buffett said he always writes his letter with smart, long-term investors like his sister Bertie in mind and tries to tell them what he thinks they would like to know regarding Berkshire.

“She is sensible—very sensible—knowing instinctively to always ignore the experts,” Buffett wrote of Bertie. “After all, if she might reliably predict tomorrow’s winners, would she freely share her valuable knowledge and thus increase purchasing competition? That would be like finding gold and then giving a map to the neighbors showing her location.”

Buffett told investors that Berkshire is a safe place to park their cash as long as they don’t expect the “spectacular performance” of its past because there are no attractively priced acquisition targets big enough to make a significant difference to the company’s results. company based in Omaha, Nebraska. But he said Berkshire will be ready to pounce with its $167.6 billion when the casino-like stock market recovers.

Investor Cole Smead of Smead Capital Management said Buffett reassured investors that “we will be ready to buy things when things finally become rational,” while warning of the dangers of Wall Street, which “is like a den.” of thieves, and they will sell you whatever they can sell you.”

Munger, Buffett’s longtime investment partner, died in November at the age of 99, marking the demise of one of Buffett’s main sounding boards over the decades in which Berkshire acquired companies like See’s Candy. , insurer Geico, railroad BNSF and others to reshape the bankrupt textile mill they took over in the 1960s into the huge, eclectic conglomerate Berkshire is today.

Related news