By BQ Desk
Legendary investor Warren Buffett, the third richest man on earth, will keep buying stocks irrespective of where the markets are moving. That’s because he still has faith in his ‘value over price’ ideology that has propelled him to one of the best known stock-pickers in the world.
“I am buying stocks. But I’m not buying because they are going to go up next year,” Buffet told Bloomberg TV in an interview on his birthday when he hosts the annual charitable lunch to benefit the Glide Foundation. “I am buying because they’ll be worth quite a bit more money in the next 10 years.”
Sometimes the market reflexes, sometimes it is crashing. But the stock market builds in underlying value from year to year.
Buffet said that well-managed companies are always a better bet for making money because the only alternative is fixed income. “So, would you rather invest in a company that’s earning 15-20 percent on their invested capital, or would you rather in a 3 percent bond that can never give more than that when you own it?”
He said that he loves market crashes because they present him with a buying opportunity. “That creates prices that make me want to shovel out money as fast as I can.”
We keep buying as long as we find something that’s attractive at a reasonable price. I love it when it’s available at a juicy price.
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