Warren Buffett Interview with Charlie Rose (Big Insights)

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Investing advice from Warren Buffett for 2023. The portfolio Buffett oversees for Berkshire Hathaway, the firm he founded, reflects Warren Buffett's investment philosophy. In several interviews and lectures, Buffett has described his investment strategy in depth. Buffett looks for stocks that fall within his area of expertise, where the company is run by a top-notch management team, and where the stock is trading below its true worth. Buffett has some breathing room with this final argument. Buffett has bought shares in companies like Apple, Coca-Cola, American Express, and many more as a result of his investment philosophies.

Here are 4 things that investors can learn from Buffett and use to their investment plans for 2023. Consider price decreases as a purchasing opportunity as the first item on our list. Prior to 2022, the US stock market saw one of the longest bull runs ever throughout the previous ten or so years. The S&P 500 reached its lowest point in March 2009 at about 750. It was almost 4,800 by the end of 2021. One of the finest periods in stock market history, with a total return of over 540 percent. Many investors believed that stock prices could only rise. But in 2022, things were very different. 2022 shown that stock prices can fall. Declines in the stock market are generally thought to be unfavorable. According to Warren Buffett, if you are still saving money and investing it in your future, you should be content when stock prices decline. Buffett stated that "net buyers" of equities profit when the stock market declines in a 2020 interview with CNBC. He refers to those who actually buy more stocks than they sell as "net buyers." Given that the majority of this channel's visitors are under 65, there is a fair likelihood that you are what Warren Buffett refers to as a net buyer of stocks and that you should be happy when the stock market declines if you are watching this video. The second item on our list is to only invest in stocks of companies you are familiar with. People have been lured to purchase stocks in companies they have no knowledge of ever since the beginning of the stock market and Wall Street. In 2020 and 2021, this tendency arguably reached its highest point ever. Legendary investor Peter Lynch once related the tale of the man who would spend a significant chunk of his savings in a stock he knew nothing about after hearing a stock tip on the bus to work.

This man would acquire shares in the vain hope that it would increase. Because he had no notion what the company was in the first place, the stock would almost always decline in value and the man would panic sell. If you change the word "bus" in that scenario to "internet," what happened in 2020 and 2021 will sound a lot like it. On the internet, especially right here on YouTube, people would read about stocks and buy them without knowing anything about the company. One of the simplest ways to lose a lot of money on the stock market is to purchase equities that you don't fully comprehend. Herein lies the value of Warren Buffett's "Circle of Competence" idea. Warren Buffett has employed the idea of the Circle of Competence over the years to direct investors toward only making investments in the stocks they are most knowledgeable about.

In his 1996 shareholder's letter, Buffett discussed the idea as follows: An investor needs to be able to accurately assess the company they choose. You don't have to be an expert on every company, or even many. Take note of the word "chosen." You must only be able to assess businesses that fall inside your area of expertise. Knowing that circle's bounds is crucial; its size is not that significant. The next item on our list is to disregard economic forecasts. Simply enter "2023 recession" into Google or this page on YouTube, and you'll be inundated with articles and videos explaining how the economy will experience a severe recession the following year. It is natural for people to want to be able to accurately forecast a recession. should have the ability to sell all of your equities just before the market collapses.

Wait for a bottom in stock prices before entering the market again and riding the wave back up to the top. This is the ideal scenario for many investors. Buffett asserts that the incorrect approach to investing is to take economic projections into account. Buffett even went so far as to remark that every company that employs an economist has too many staff at the 2015 Berkshire Hathaway annual meeting.