Do not get caught in bonds, invest in equities, do not bet against America – Warren Buffet

Legendary investor Warren Buffett has advised investors not to place bets against the US. In a letter to shareholders of BERKSHIRE, he has said that despite some problems, America’s growth has been excellent. Also, he has advised investors to stay away from fixed income instruments. Oracle of Omaha has given special investment mantras for investors in its letter.

Warren Buffett in his letter to investors of Berkshire Hathaway gave his outspoken opinion about equity, bonds and economy. Giving his formula to recognize confusion and truth, he has said in this letter that there is no country like America, do not bet against America. In spite of some obstacles, the growth of the US has been excellent.

On this letter equities, Warren Buffett has said that the illusion is not accepted as truth, the illusion is finally broken. It is advisable to invest money in their shares. Warren Buffett says that equity is a positive-sum game. While giving his opinion on bonds, Warren Buffett has said that the outlook for all fixed income investments that are not stuck in investor bonds is bad.

WARREN BUFFETT considered the investment in Precision Castparts as a mistake and said that their Precision Castparts had to write down $ 11 billion. He reported that Berkshire would have 138.3 billion in cash by 2020. Berkshire has bought back shares worth 24.7 billion.

Warren Buffett says in this letter that he made a mistake by shopping at Precision Castparts in 2016. Explain that it makes equipment for aerospace and energy sectors. The company had to write down about $ 11 billion after the pandemic severely shocked the aviation sector, mostly associated with the same purchases. Buffett said the $ 11 billion write-down in his GAAP figure is the result of the same mistake he made in 2016. He said that year Berkshire bought Precision Castparts and that he paid too much for the company. Nobody misled him, he was simply too optimistic about PCC’s profit potential.

Talking about the top holding of BERKSHIRE, it includes ABB, Vie Inc, American Express, Apple, BYD Co, Coca-Cola, General Motors, Moodys.

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