2018-04-05 07:42:00 Thu ET
stock market gold oil stock return s&p 500 asset market stabilization asset price fluctuations stocks bonds currencies commodities funds term spreads credit spreads fair value spreads asset investments
CNBC news anchor Becky Quick interviews Berkshire Hathaway's Warren Buffett in light of the recent stock market gyrations and movements. Warren Buffett views stocks as small pieces of business enterprises. He tends to buy large equity stakes of public enterprises with low relative market valuation that manifests in the form of low P/B and P/E ratios (below 1.2x and 9x respectively).
It would be idiotic to just look at the share price when the investor places his or her equity stakes in public companies. Although some investors and fund managers emphasize a healthy balance between stock and bond portfolio allocation, Buffett focuses on the higher 12% annual long-term average return on stocks in contrast to a meager 3%-4% counterpart for bonds. Given the recent oil price surge, Dodd-Frank rollback, and non-nuclear peace summit between North Korea and America, the current stock and bond fundamental recalibration offers lucrative investment opportunities.
Warren Buffett shares his principles for achieving success in life. First, we should keep a long-term perspective to invest in our own education and social integration for greater wealth, happiness, and personal fulfillment. Second, we remain humble enough to learn new tricks, concepts, and virtues to enrich our own wisdom. Third, we invest in bluechip stocks with extra cash and no debt to earn compound interest over time. These stocks include small profitable cash cows with low relative market valuation that invest conservatively in both capital investment and balance sheet expansion. In fact, we must learn to live within or even below our means for sound and sustainable wealth creation. We can be much better off owning a small number of well-made and reliable possessions than a large number of possessions that we seldom use in practice. We should consciously invest time and energy in each part of our lives with minimal destructive spending urges.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2018-07-21 13:35:00 Saturday ET
President Trump supports a bipartisan bill or the Foreign Investment Risk Review Modernization Act (FIRRMA), which effectively broadens the jurisdiction of
2018-08-15 14:40:00 Wednesday ET
Senator Elizabeth Warren advocates the alternative view that most U.S. trade deals serve corporate interests over workers, customers, and suppliers etc. She
2019-01-03 10:38:00 Thursday ET
American parents often worry about money and upward mobility for their children. A recent New York Times survey suggests that nowadays American parents spen
2023-10-21 11:32:00 Saturday ET
Walter Scheidel indicates that persistent European fragmentation after the collapse of the Roman Empire leads to modern economic growth and development.
2017-04-07 15:34:00 Friday ET
Would you rather receive $1,000 each day for one month or a magic penny that doubles each day over the same month? At first glance, this counterintuitive
2018-01-23 06:38:00 Tuesday ET
Amazon, Berkshire Hathaway, and JPMorgan Chase establish a new company to reduce U.S. employee health care costs in negotiations with drugmakers, doctors, a