Daily Column – 2nd May 2022

A lot of people in the world of investing use air fryers. Warren Buffett is a slow cooker, though.

At Berkshire Hathaway’s annual shareholders meeting, the 91-year-old investing legend talked about his “buy and hold” investing strategy with a huge crowd of people who were interested in money.

It’s worked out well this year. Ten percent more money has been made by Berkshire Hathaway than by the S&P 500 so far this year.

It looks like Buffett is also buying the dip.

During the fall in the stock market in the first three months of the year, Berkshire bought $51.1 billion worth of US stocks. He wouldn’t call it “buying the dip” because he doesn’t believe in timing the market. “We have no idea what the stock market is going to do when it opens on Monday,” said Buffett.

It doesn’t say what he bought.

In fact, he’s a big fan of the energy business. In the first three months of the year, Berkshire bought a lot of Occidental Petroleum and made its stake in Chevron even bigger.

And what about games? After Berkshire Hathaway bought a 9.5 percent stake in Activision Blizzard, it has become the biggest shareholder. It’s not likely that Buffett has ever played with an Xbox controller. Stock in Activision has gone up more than 15% since Microsoft agreed to buy it in January.

Takes from the slow cooker that are also hot are also on this list

During the pandemic, a lot of new people bought and sold stocks. This has made the market “almost entirely a casino,” in which big American businesses have become “poker chips.” Munger slammed the Robinhood trading app because it encourages people to play games. The 98-year-old said that “God is getting even.”

Buffett also talked about the state of the U.S. economy, focusing on the 40-year-old inflation that’s been going on for a long time. When the Fed spent so much money to keep the economy going during the pandemic, Buffett said that inflation “swindles almost everyone.” But he still thinks the Fed did the right thing: “Jay Powell is a hero in my book. The Fed did the right thing.” It is very easy. When he had to, he did the job.

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