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.
2017-08-13 09:36:00 Sunday ET
Several investors and billionaires such as George Soros, Warren Buffett, Carl Icahn, and Howard Marks suggest that the time may be ripe for a major financia
2019-03-05 10:40:00 Tuesday ET
We may need to reconsider the new rules of personal finance. First, renting a home can be a smart money move, whereas, buying a home cannot always be a good
2018-01-21 07:25:00 Sunday ET
As he refrains from using the memorable phrase *irrational exuberance* to assess bullish investor sentiments, former Fed chairman Alan Greenspan discerns as
2019-10-21 10:35:00 Monday ET
American state attorneys general begin bipartisan antitrust investigations into the market power and corporate behavior of central tech titans such as Apple
2019-05-02 13:30:00 Thursday ET
Netflix has an unsustainable business model in the meantime. Netflix maintains a small premium membership fee of $9-$14 per month for its unique collection
2018-05-04 06:29:00 Friday ET
Commerce Secretary Wilbur Ross suggests that 5G remains a U.S. top technology priority in light of the telecom merger proposal between Sprint and T-Mobile a