Last weekend had been eventful with so many shareholders of Berkshire Hathaway attending the AGM and listening to the wise words from the two legendary investors - Warren Buffett and Charlie Munger! Here is a summary of four key lessons that we can learn from then:
1. Be patient, don't buy blindly when everything is on uptrend. Do your due diligence, be fearless and buy the dips when the prices drop to am attractive level.
In 2021 when everything is uptrend, Warren Buffett has decided to hold onto the company's cash pile, unwavered by the bulls. Now, when prices are falling mercilessly, Warren Buffett is unfazed and started buying stocks that he believed to be great bargains which include $Chevron(CVX)$and $Hewlett Packard Enterprise(HPE)$
2. Think long term, hold long term
While the company might be or not be good at timing. However, that does not affect how much returns his company has been generating over the years. The best way to invest is actually to "buy-and-forget". Let your investment grow slowly as the company invested grows.
3. Always have cash reserve by your side
Cash is king. Don't be too eager to get rich and invest all your money in the stock market or worse, get yourself in debts in investing. You don't want to be in a situation whereby you have to liquidate your position unfavourably due to emergency need for cash, or miss the chance to buy attractive dips as all monies are already invested. DCA, slowly and steadily.
4. Buy stock with conviction, not by speculation
Is the plunge of $Robinhood Markets, Inc.(HOOD)$expected? How about WSB stocks like $GameStop(GME)$ and $AMC Entertainment(AMC)$? Before putting your hard-earned money into these stocks, remember to assess their value and buy only if you believe that the company value will soar over time.
Do share what other key takeaways you have from the AGM! [smile]
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