Wednesday, October 16, 2013 Fortune The Most Powerful Women Washington, D.C., USA 9:30 AM ONE ON ONE Warren Buffett, Chairman and CEO, Berkshire Hathaway Inc.
Interviewer: Carol Loomis, Senior Editor at Large, Fortune Photograph by Stuart Isett/Fortune Most Powerful Women

A few words of advice from Warren Buffett’s  letter to shareholders taken from the 2014 Berkshire Hathaway Inc. Annual Report:

Anything can happen anytime in markets.  And no advisor, economist or TV commentator – and definitely not Charlie [business partner Charlie Munger]nor I – can tell you when chaos will occur.  Market forecasters will fill your ear but will never fill your wallet.’

‘If the investor fears price volatility, erroneously viewing it as a measure of risk, he may, ironically, end up doing some very risky things.  Recall, if you will, the pundits who six years ago bemoaned failing stock prices and advised investing in “safe” Treasury bills or bank certificates of deposits.  People who heeded this sermon are now earning a pittance on sums they had previously expected would finance a pleasant retirement.’

‘For a great majority of investors, however, who can – and should – invest with a multi-decade horizon, quotational declines are unimportant.  Their focus should remain fixed on attaining significant gains in purchasing power over their investing lifetime.  For them, a diversified equity portfolio, bought over time, will prove far less risk than dollar-based securities [insured bank deposits, CDs].’

Recent Posts

Happy Veterans Day-A Tribute to My Grandfather

On Veteran's Day, I am reminded of the life of my maternal grandfather, Joesph Thomas Dickerson. At age 17, so anxious was he to defend his country during WW I that he fibbed about his age and enlisted.  By age 18, he had become a regimental sargent major, the highest...

read more
What Does President Trump Mean For Investors?

What Does President Trump Mean For Investors?

How political parties affect the markets and the economy Now that the 2016 presidential election is over and we can refer to Donald Trump as President Trump, it’s time to examine some additional questions. More specifically, how will President Trump affect markets and...

read more

Pin It on Pinterest