2023-05-06 21:01:27
Billionaire Warren Buffett has reduced value investing – the strategy that helped him accumulate his wealth – to one sentence: “What gives you opportunities is other people doing stupid things.”
The term value investing refers to buying a lower priced security through some form of fundamental analysis when others are selling it…and then holding it for a long time.
This strategy has caused Buffett to make big gains, especially when others panic.
For example, in 2008 Buffett bought shares in Bank of America which became one of his largest holdings ever.
While Buffett acknowledges that the world is changing, he believes that value investment opportunities are becoming more abundant.
And the sage of Omaha added: In the 58th year of Berkshire Hathaway’s management I would say that there has been a significant increase in the number of people who do stupid things..and they also do huge stupid things.
He continued: The reason they do this to some extent is because they can get money from people much easier than it was when we started.
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