It’s been a fun week so far. The fears of the coronavirus have finally hit the market, and the selling has been intense at times.
Owners of allegedly safe blue-chip stocks have taken a tremendous hit as sellers have emerged in earnest. I have been saying for some time that stocks were overvalued but had no reason to go down. Now it seems they have found a reason, and we have no idea where this particular leg of the journey will end.
Luckily here at Max Wealth, we have a tried and true strategy to approach markets like this, even when things seem bleak.
Here’s what I mean…
The Berkshire Hathaway Inc. (NYSE:BRK.A) shareholder letter was released Saturday morning to an audience of Buffettologists who await the release every year like the crowds in St. Peter’s Square await the Sunday afternoon appearance of the Pope.
Every word of the letter will be read, analyzed, evaluated, and pondered by the Warren worshippers over the next few days.
Enormous amounts of cash will be shifted around in investors’ portfolios based on what they think Mr. Buffett meant.
If you understand markets and investing at all, you have to appreciate what Warren Buffett has accomplished over his lifetime.
He has compounded Berkshire’s worth by 20% a year since 1965, a feat unmatched by mere mortals.
He is not only a brilliant investor, but he’s also proven himself to be a brilliant businessman.
However, I tend to think that unless you’re an 86-year-old billionaire running a $560 billion company, it’s probably a not a great idea to try and duplicate what Warren is doing with his company at a given point in time.
If you want to put yourself on the path to grow your wealth at that pace, here are some key items from Berkshire’s letter that you should focus on…