Warren Buffett is one of the most trusted sources in the world when it comes to money outlook as well as to what to buy and sell. As the powerful CEO of Berkshire Hathaway, he yearly gives an address on the way that he feels the market is moving as well as on the current situation surrounding his company. He gave his yearly address on May 2, 2015 and shared that he had in fact made a mistake in his predictions, not realizing that there was a way to keep inflation low even after the Fed had printed more money. He is the world’s most admired billionaire for the fact that he is not afraid to share all of his predictions and his thoughts on investing with anyone who will listen.
With the success that the Fed had of keeping interest rates low as well as keeping inflation low, the European Central Bank has been following the American model. The press was more intense on Buffett than regular in this year’s address as he was pressed on his company Berkshire partnering with companies which practiced predatory lending, made refined sugar and laid off employees. He was further pressed about his company’s investment in IBM, which has not performed as many thought it should in the fist quarter. However, Buffett dismissed the worries of the investors citing that many of Berkshire’s best companies had gone through a downward turn in the past and come out on the other side of profitability.
Furthermore, there were questions from the press as to the reason that Berkshire has diversified itself so much from the insurance model into a model of owning a part of everything from Heinz to Dairy Queen. Buffett shared that diversification was a part of his overall strategy as well as the idea behind the long term profitability of Berkshire Hathaway.
Buffett further shared his insight on the current money outlook stating that right now stocks are cheap and if he had the money he would be buying them up left and right now. He mentioned that he thinks that stocks will continue to be cheap for the next six months or so and that this is the time for any investors who want to grab a slice of companies on a budget to do so. He further commented that he did not see that inflation was going to continue to be much of a problem as the bills have been kept relatively low compared to other historic periods of parallel in the past.
Buffett also commented that the economy is seeing a remarkable recovery and will continue to progress towards complete recovery despite some of the negative indicators in the market. The jobs numbers have continued to improve as Americans have found new ways to reinvent themselves and become a part of the market again. Those who are a part of Wall Street will soon see gains as they will continue to be able to purchase stocks at affordable prices and bolster the jobs sector for growth on Main Street, according to the insight shared by Buffett on the money outlook.
By Melissa English
Photo Ted Izen Creativecommons Flickr License
Photo By Fortune Live Media Stuart Isett Creativecommons Flickr License