Ahead of Mario Draghi’s press meeting on Thursday Warren Buffet was on CNBC discussing the recent acquisition of a car retailer. He went on to make the joke he is now into planes trains and automobiles. During the interview he was asked about the equity market and current valuations.
The gist of the interview was that we all get to work up into the day-to-day movements in our portfolios and the market movements. He bought stocks on Wednesday and would have done so had he been told the market would fall 500 points in the following day. He repeats the often-made point that he is not buying for the short term but for ten or twenty year’s time.
He makes the point we often make that the constant ability to see what our share prices are doing we turn to a disadvantage rather than the advantage it is. When quizzed about bonds, his reply was that he owns hardly any as stocks out perform bonds over time.
Below is a link to part of the interview as his words are far better than ours.