Warren Buffett says that “ the average person can’t pick stocks ” in warning to a wave of amateur investors who have begun trading during the pandemic.
Investment expert Warren Buffett said last night that “the average person cannot pick stocks” in a warning to the wave of amateur investors who have begun trading during the pandemic.
Buffett was addressing his annual shareholder meeting – which he called “Woodstock of Capitalists” – and said that armchair picks should simply invest in funds that track the US stock market.
Sipping a can of Coca-Cola, sage Omaha said, “ I love it [my investment company] Berkshire but I think someone who knows nothing about stocks at all or has no feelings for Berkshire should buy the S&P 500. ”
Hakim’s advice: Warren Buffett said armchair stock pickers should simply invest in funds that track the US stock market.
Buffett also admitted that his decision to sell some shares of Apple last year was “probably a mistake” and described it as “an unusual business.” Despite this, the value of the 5 percent stake has nearly doubled from $ 64 billion to $ 121 billion over the past year.
Buffett surprised his more than 1 million shareholders with an initial $ 1 billion investment in Apple in 2016.
He faced suggestions at the time that the stock had peaked, but shares have since risen nearly 500 percent, putting the company in value at $ 2.24 trillion (£ 1.62 trillion). Apple last week recorded record quarterly revenue as consumers upgraded to the first generation of iPhone devices that support 5G technology.
AJ Bell said Buffett’s stake in Apple rose $ 10.2 billion in the last month alone. Apple accounts for 43 percent of Berkshire Hathaway’s portfolio, which also includes stakes in Bank of America, CocaCola and American Express.