at Berkshire Hathaway (BRK-A, BRK-B) annual shareholders meeting Saturday, Warren Buffett He gave investors his usual tips on how he became one of the most famous companies. notice investor.
One of the keys: don’t get emotional. At least in business matters.
“In the history of Berkshire, I can’t recall a time when we made an emotional decision,” Buffett said. , you would want to be an emotionless person.”
This strategy has worked for Berkshire Hathaway for many years. Conglomerates outperformed the S&P 500 from 1965 to 2022 and weathered all kinds of risks. economic ups and downs.
Buffett is known for his signature value-oriented investment philosophy, which consists of buying and holding a core set of quality companies for an extended period of time. Berkshire’s largest holding is Bank of America (BACs), apple (AAPL), coca cola (unit), and American Express (AXP).
‘It’s all about the business’, fellow value investor Jonathan Boyer told Yahoo Finance Live About investment approach. “Is it a good business? Do they have a product or service that people want? And can it grow? Is there a large market that can be addressed? Do you have an area?”
“So the analysis is the same for large-cap and small-cap stocks,” Boyard added. “The price is very important, as is the quality of the business.”
Buffett’s longtime business partner Charlie Munger agreed with Buffett on removing emotion from the decision-making process. At the same time, he said later in the conference that things could get tougher for value investors going forward.
“I think we are going through a tough time right now as many of the value investors are competing for a reduced set of opportunities,” Munger said. “My advice for evaluating investors is to get used to lower returns.”
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