WARREN BUFFET’S FOURTH-GRADE INVESTING STRATEGY  – SHAME IT’S NOT TAUGHT IN SCHOOL! 

WARREN BUFFET’S FOURTH-GRADE INVESTING STRATEGY  – SHAME IT’S NOT TAUGHT IN SCHOOL! 

Disclaimer: Good Day, Readers.  WealthBuildingPowers blog is a financial literacy/competency blog and does not provide specific investment recommendations.  

Warren Buffett on the investing strategy ‘you can learn in the fourth grade,’ but is ‘not taught in schools’

Warren Buffett has a trick for getting his money’s worth out of the stock market, and he says it’s a skill “you can learn in the fourth grade” — even though it’s “not taught in schools.”

At Berkshire Hathaway’s annual shareholders’ meeting on Saturday, Buffett recommended against obsessing over finding a perfect time to buy a stock.  Rather, the Berkshire Hathaway CEO said, go ahead and invest, and then observe the stock market over time to see if you should buy more of that company’s stock or sell it.

Buffett said that he, longtime business partner Charlie Munger and other Berkshire Hathaway executives have long used this strategy because it has a higher chance of a return, and it alleviates some of the pressure of trying to predict the stock market.  If the value of a stock dips after you buy it, Buffett noted, that means its shares have become less expensive — so buy more of them.

“We haven’t the faintest idea what the stock market is going to do when it opens on Monday,” Buffett said.  “We’ve not been good at timing.  We’ve been reasonably good at figuring out when we were getting enough for our money.”

Using this strategy to navigate the stock market instead of trying to predict it, Buffett said, is almost like having an insurance policy in an often volatile market.  Twice, he said, he’d tried to predict the market ahead of time — once in 2008 during the Great Recession, and again in March 2020 ahead of the Covid-19 pandemic crippling global markets.

Those decisions cost Berkshire Hathaway billions of dollars, he said.

“We were optimistic in 2008 when everybody was down on stocks,” Buffett noted.  “We spent a big percentage of our net worth at a very dumb time.  We spent about $15 or $16 billion, which was a lot bigger to us then than it is now.”

Buffett credited the navigation strategy to Berkshire Hathaway’s success: The company has a market cap of $704.29 billion as of Tuesday morning.  By extension, the strategy would also then be responsible for Buffett’s status as a billionaire.  The 91-year-old currently has a net worth of $115.2 billion, making him the world’s sixth-richest person, according to Forbes.

Another billionaire has followed a similar playbook: Tesla and SpaceX CEO Elon Musk, currently the wealthiest person.  On Sunday, Musk tweeted familiar investing advice: “Buy stock in several companies that make products [and] services that you believe in.  Only sell if you think their products [and] services are trending worse.  Don’t panic when the market does.”  This will serve you well in the long-term,” Musk added.

WARREN BUFFET USED THE ABOVE FOURTH GRADE STRATEGY TO ACQUIRE APPLE STOCK SHARES  

The below table demonstrates how Warren Buffett grew his Apple stake from $7.10 Billion to $120.4 Billion.  “go ahead and invest, and then observe the stock market over time to see if you should buy more of that company’s stock or sell it.”

END OF YEARAPPLE SHARES HELDPERCENTAGE OF APPLE SHARES OWNED BY BERKSHIRE HATHAWAYCOST BILLIONSMARKET VALUE APPLE HELD BY BERKSHIRE HATHAWAY END OF YEAR
201661,242,6521.1$6,747$7,093
2017166,703,2093.3$20,961$28,213
2018255,300,3295.4$36,044$40,271
2019250,666,5665.7$35,287$73,667
2020907,509,7615.4$31,089$120,424
2021907,559,7615.6$$31,089$161,155

CONCLUSION – WARREN BUFFET’S FOURTH-GRADE INVESTING STRATEGY – SHAME IT’S NOT TAUGHT IN SCHOOL! 

Warren Buffett is my best lifetime investment mentor and role model.

READ AND LISTEN TO MR. BUFFET TO GAIN YOUR FINANCIAL FREEDOM!

After almost 20 years of education, I expected more financial and investment literacy.  I was disappointed.  One of many great traits my parents taught me is that if you want something, get off your behind and work for it.  Warren Buffett outlines a strategy a fourth grader can understand.

  1. Find a great company and research it.  Confirm it is a company with good products and great leaders.   Great companies increase sales!
  2. Buy some of this great company’s stock.
  3. Periodically reevaluate this company.  If you still believe in this company and the price has fallen- buy more.  Same if the price has gone up.
  4. Stop looking for the next great company when you have identified a great company.  Keep buying the stock.
  5. When the next great company is spotted, start at step # one and repeat.

https://www.cnbc.com/2022/05/03/warren-buffett-why-you-should-navigate-not-predict-the-stock-market.html

 

LET’S MAKE SOME MONEY – CRYPTOCURRENCY IS ACCEPTED! 

YOUR GREATNESS IS NOT WHAT YOU HAVE; IT’S WHAT YOU GIVE! – SOME CHARITIES I SUPPORT

St Jude Hospital:  https://www.stjude.org/

Wounded Warrior Project:  https://www.woundedwarriorproject.org

Folds of Honor:  https://foldsofhonor.org

Wilson’s No-Kill Animal Shelter:  https://wcnkas.org

TRUST ME – YOU WILL LIKE THE BELOW BLOGS! 

 


Jamie Dimon, Chairman and CEO JP Morgan Chase, and Company, 2021 Letter to Shareholders

 

The Oracle of Omaha’s Investment Strategy Explained

BECOMING THE NEXT (OUTLIER) STEVE JOBS, WARREN BUFFETT, ELON MUSK, ETC.


A MUST-READ – “GREATEST OF ALL TIMES” ANNUAL SHAREHOLDERS LETTERS – BERKSHIRE HATHAWAY’S 2020 ANNUAL LETTER

Bill Gates Says This Is the Most Important Thing He’s Learned from Warren Buffett.  (Hint: It Has Nothing to Do with Money) Two billionaires are linked by one common denominator.

WARREN BUFFETT’S NET WORTH IS DRIVEN BY THESE IRONCLAD TEN REULES

WARREN BUFFETT, JEFF BEZOS, STEVE JOB- GREAT LEADERS YIELD GREAT INVESTMENTS!

WARREN BUFFETT MAKES $9 BILLION ON APPLE – HOW ABOUT YOU?


Warren Buffett Says This 1 Simple Habit Separates Successful People From Everyone Else http://flip.it/_AzPx9

 

WARREN BUFFETT UTILIZED COMPOUND INTEREST TO BECOME THE 3RD RICHEST MAN ON THE PLANET!

WARREN BUFFETT UTILIZED COMPOUND INTEREST TO BECOME THE 3RD RICHEST MAN ON THE PLANET!

 

WANT TO LEARN HOW TO BECOME WEALTHY – READ “THE MILLIONAIRE NEXT DOOR”

 

 

LEARNING FROM INTELLIGENT MINDS – IS MANDATORY!

 

THE ONE BOOK YOU SHOULD READ…….

 

IMPROVING MY COMMUNICATIONS SKILLS MORE THAN DOUBLED MY COMPENSATION!  SERIOUSLY!

  

KEEP IT SIMPLE STUPID {KISS} – THE S&P 500 ETF INDEX

KEEP IT SIMPLE STUPID {KISS} – THE S&P 500 ETF INDEX

 

COMPOUND INTEREST IS THE EASIEST WAY TO DOUBLE OR TRIPLE YOUR MONEY

COMPOUND INTEREST IS THE EASIEST WAY TO DOUBLE OR TRIPLE YOUR MONEY

 

INVESTING IN STOCKS IS COLOR BLIND – WHAT IS STOPPING YOU?

INVESTING IN STOCKS IS COLOR BLIND – WHAT IS STOPPING YOU?

FINANCIAL LITERACY IS JUST NOT THAT COMPLICATED – TRUST ME!

https://wealthbuildingpowers.com/2019/04/01/financial-literacy-is-just-not-that-complicated-trust-me/

 

 

 

To Join Wealth Building Powers BLOG:

PLEASE SIGN UP TO FOLLOW ME BY PROVIDING YOUR E-MAIL IN THE WORDPRESS BLOG PAGE SUBSCRIBE BOX!

Thank you to my followers and readers for your likes and comments.  All comments, recommendations, and feedback are welcomed and utilized to improve this blog.

ABOUT ME

I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger with an NC.  State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.

I left a corporate career because I desired to make a difference as a speaker and writer.  I was blessed to be coached and mentored by strong women and men in my family and professional life.  It is my time to serve and give back.

DISCLAIMER

I started my first business at ~13 years of age (a small but brilliantly created plant nursery). I am a successful investor in stocks, options, and real estate and am happy to share my finance and investment lessons.  I am NOT a licensed financial advisor.  Please do not construe my suggestions on this blog as recommendations for your situation.  As an investor, you must establish your risk/loss tolerance.  Investment in any asset involves risk, including complete loss. 

 Please seek your licensed CPA or fiduciary financial advisors for individual financial advice.  

I write this weekly blog to make an impact by reaching an audience and demonstrating the need for financial literacy.  I will help you get there.

To follow my daily posts on Instagram, CLICK BELOW:

 http://instagram.com/wealth_building_powers

Powers Investments Management, LLC

This blog will provide, information and simple strategies, that will assist you to achieve YOUR financial objectives and long term targets. For over 30 years, I solved multi-million dollar problems, for Fortune 10-250, companies. My formal education includes: Business, Finance and Chemical Engineering {Problem Solving} at: Harvard, Rutgers and North Carolina State. And an additional 30+ years, managing my family’s investment decisions. I currently manage/advise people with net-worths ranging from the tens of thousands to several million dollars.

You May Also Like

ASSOCIATE JUSTICE OF THE U.S. SUPREME COURT, CLARENCE THOMAS – A RAINBOW OF ROLE MODELS {WEDNESDAY SERIES}

THE FIVE-HOUR RULE USED BY BENJAMIN FRANKLIN, BILL GATES & ELON MUSK

GREEK ARCHBISHOP – LAKOVOS WAS THE ONLY CHURCH LEADER WHO HAD THE COURAGE TO WALK HAND-IN-HAND WITH MARTIN LUTHER KING DURING THE FAMOUS MARCH IN SELMA! – A RAINBOW OF ROLE MODELS {WEDNESDAY SERIES}

YOU GET 86,400!  NO RETURNS! 

Leave a Reply

%d bloggers like this: