Warren Buffet Dropped These Investing Tips during COVID-19

Advisor June 2, 2020

How COVID-19 has affected everything in the world is common knowledge today. The pandemic has shut down the economies of many countries, and the stock markets aren’t excluded from the hits. Financial institutions have been making speculations as to how they will revive the economies. Significant indexes like Dow Jones and S&P 500 were bearish in March. Since then, the market hasn’t been the same.

In such a grim financial atmosphere, is investing still beneficial? According to Warren Buffet, it is if you follow these golden tips he’s given.

CNBC | Warren Buffet shared these investment tips during COVID-19

Bits of advice from Warren Buffet – Top Investor

Warren Buffet, the chairman of Berkshire Hathaway, enlightened his fellow investors via his annual interview with CNBC in February. The chairman interviewed via teleconferencing for the first time. Below are the top-notch pieces of advice he shared:

Don’t fret over news headlines

A highly critical aspect of trading is fundamental analysis (news). The Oracle of Omaha said that with the global pandemic in place, you shouldn’t value day-to-day news. The market is unpredictable. It doesn’t always dance to the tune of current events. He said in the interview that the movement of the market can’t be determined by a headline.

More Focus on Value

Warren said that nobody knows where the market is heading to. He advised that there should be less focus on share prices and more on the company’s total value, considering its past performance. This assessment, coupled with the potential of future growth, will get you a clearer picture of the market.

G-Stock Studio/Shutterstock | Focus more on a company’s total value, not its stock price

Read – Financial Habits Everyone Needs During Lockdown

Long Term Strategy

When you want to invest, don’t think like you’re in a grocery store to buy something. You have to consider the stocks you’re buying as a business, one from which you’re expecting profits in the next decade. When you decide to go long term, you don’t bother yourself with everyday analysis and won’t worry over a news headline.

Read – Seven Ways to Assess UK Stocks during COVID 19

Go for an index fund

Buffet gave people the advice of investing in an index fund. He commented that people are much better purchasing a portion of America and forgetting about it. So, if you want to invest in a solid investment plan that yields good returns, you can try index funds.

Shutterstock | Investing in index funds could prove beneficial

Wrapping it up

Berkshire Hathaway’s chairman buttressed his advice. He also talked about not borrowing money for investment. With this COVID 19, anything can happen anytime. Following expert advice and not experimenting too much could prove beneficial.