CNBC news anchor Becky Quick interviews Warren Buffett in light of the recent stock market gyrations and movements.

Becky Berkman

2018-04-05 07:42:00 Thu ET

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.

Blog+More

Warren Buffett points out that many people misunderstand his stock investment method in several ways.

Jonah Whanau

2017-06-21 05:36:00 Wednesday ET

Warren Buffett points out that many people misunderstand his stock investment method in several ways.

In his latest Berkshire Hathaway annual letter to shareholders, Warren Buffett points out that many people misunderstand his stock investment method in seve

+See More

President Trump ramps up 25% tariffs on $200 billion Chinese imports soon after China backtracks on the Sino-U.S. trade agreement.

Rose Prince

2019-05-09 10:28:00 Thursday ET

President Trump ramps up 25% tariffs on $200 billion Chinese imports soon after China backtracks on the Sino-U.S. trade agreement.

President Trump ramps up 25% tariffs on $200 billion Chinese imports soon after China backtracks on the Sino-American trade agreement. U.S. trade envoy Robe

+See More

Yale macro economist Stephen Roach draws 3 major conclusions with respect to the Chinese long-run view of the current tech trade conflict with America.

Joseph Corr

2019-09-05 09:26:00 Thursday ET

Yale macro economist Stephen Roach draws 3 major conclusions with respect to the Chinese long-run view of the current tech trade conflict with America.

Yale macro economist Stephen Roach draws 3 major conclusions with respect to the Chinese long-run view of the current tech trade conflict with America. Firs

+See More

Harvard financial economist Alberto Cavallo empirically shows the recent *Amazon effect* of faster retail price adjustments.

Amy Hamilton

2018-08-23 11:34:00 Thursday ET

Harvard financial economist Alberto Cavallo empirically shows the recent *Amazon effect* of faster retail price adjustments.

Harvard financial economist Alberto Cavallo empirically shows the recent *Amazon effect* that online retailers such as Amazon, Alibaba, and eBay etc use fas

+See More

CNBC news anchor Becky Quick interviews Warren Buffett in early-2019.

James Campbell

2019-04-07 13:39:00 Sunday ET

CNBC news anchor Becky Quick interviews Warren Buffett in early-2019.

CNBC news anchor Becky Quick interviews Warren Buffett in early-2019. Buffett explains the fact that book value fluctuations are a metric that has lost rele

+See More

Our proprietary alpha investment model outperforms most stock market indices from 2017 to 2022.

Peter Prince

2022-02-02 10:33:00 Wednesday ET

Our proprietary alpha investment model outperforms most stock market indices from 2017 to 2022.

Our proprietary alpha investment model outperforms most stock market indices from 2017 to 2022. As of early-January 2023, the U.S. Patent and Trademark O

+See More