For investors shaken by Dow plunge, Warren Buffett's new advice on finding long-term market winners

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In his latest annual letter to Berkshire Hathaway shareholders, Warren Buffett made an implicit warning to the finance executives and managers who run corporate America: Now is the time to be investing profits in the business, while inflation is low.

this past weekend was an implicit warning to the finance executives and managers who run corporate America: Now is the time to be investing profits in the business, while inflation is low.

If the lesson from Buffett was new, like many of his market lessons over the years, it was borrowed from the investors of previous eras whom he adored. He began by telling a story about the economist and financial advisor Edgar Lawrence Smith, whose 1924 book "Common Stocks as Long Term Investments" was the first to debunk the pre-Depression conventional wisdom about being more conservative with investments in weaker times.

In fact, Buffett has been a big backer of dividends in the stocks Berkshire owns. While he has refused to offer a Berkshire shareholder dividend, his company earned close to $4 billion in dividends from stock portfolio holdings in 2019, according to the Berkshire annual report.

 

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How is inflation low when everything is currently inflated? Warren Buffett is a jack ass

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