![]() ![]() He managed to book a gain of 6.8% in 1969, even though the Dow Jones Industrial Average fell 11.6%.Īfter closing his fund, Buffett became chairman of Berkshire Hathaway Inc. So Buffett shut down his partnership and returned money to all his investors. I am not attuned to this market environment, and I don’t want to spoil a decent record by trying to play a game I don’t understand just so I can go out a hero.” ![]() “I just don’t see anything available that gives any reasonable hope of delivering a good year, and I have no desire to grope around, hoping to ‘get lucky’ with other people’s money. In May 1969, Buffett told his shareholders that he had run out of “first-class ideas.” Stock market values had run so high that he couldn’t find the bargains he craved. #WARREN BUFFETT SUCCESS STORY PROFESSIONAL#With that kind of success, most professional investors would have continued to play the game. Throughout the 1960s, Buffett compiled a spectacular investment record: A $10,000 investment in his partnership in 1957 became $1.7 million by 1969! But that story isn’t entirely accurate one of the most brilliant investments Buffett ever made was to sell stocks, not buy them. ( We talked about like Intelligent Asset Allocation methods last week.)Įvery legendary story of investment success begins with an individual who had amassed enough cash prior to a financial crisis that they were able to use to buy stocks on the cheap during the crisis.Īccording to the popular narrative, Buffett made his billions by buying great stocks and then hanging on for the ride. That’s why I recommend maintaining significant cash levels at all times…even when stocks are flying high. It’s a fool’s game to rue the “lost opportunity” you never actually had… to regret the “one that got away” when you didn’t have the capital to pull the trigger anyway.įormer restaurant worker now with over 40 1,000% winners shares urgent message Moreover, you can’t buy cheap stocks with cash you don’t have, no matter how cheap they become. If you go into the next crisis with hardly any cash, you’ll be a victim. ![]() It’s just a matter of time before we experience another bear market - we’re already in a bearish period. Right now, you should devote yourself to preserving cash, so that it is available when great investment opportunities present themselves. That’s why you should have a healthy respect for cash, bordering on worship. Without cash, every investment opportunity is a nonstarter. It is what enables savvy investors to pounce on excellent opportunities and to gobble up the tasty investments that can turn modest investments into millions, if not billions, of dollars. In fact, cash is essential - both as a buffer against downturns, and as a source of future investment gains. The Real Story Behind Warren Buffett’s Fortune “Cash is trash” is a phrase that often circulates when stocks are soaring.īut cash isn’t always trash. They think of it as “dead money” that yields nothing. Yet most investors fail to appreciate the value of cash. The Secret Behind the Widening Wealth Gap If you don’t have any, you won’t ever achieve investment success. There’s nothing like it.Ĭash is both the repository of accumulated wealth and the seed of future wealth creation.Īlmost every success story begins with cash. Cash occupies a unique - and essential - place in the world of investing. ![]()
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