It is no longer mostly in Asia. Italy has reported six coronavirus deaths and an accelerating number of cases. At a time like this, it is nice to see Berkshire Hathaway’s BRK.B, -2.92% Warren Buffett assuage investors. Buffett‘s advice — don’t buy or sell on the headlines — is especially applicable now.
There is a gem in Buffett’s annual letter, which was released over the weekend, that nobody is talking about. He writes: “Anything can happen to stock prices tomorrow. Occasionally, there will be major drops in the market, perhaps of 50% magnitude or even greater.” He continues that the combination of what he calls “The American Tailwind” and “compounding wonders” will make equities “the much better long-term choice for the individual who does not use borrowed money and who can control his or her emotions. Others? Beware!”
- Source, Market Watch
