Buffett’s Been Quiet, But His Philosophy Still Speaks Volumes
There’s a reason he’s sitting on so much cash, and investors should pay attention.
The Oracle of Omaha is sticking with value investing despite its recent poor record.
Photographer: Houston Cofield/Bloomberg“This time is different,” the rally cry of investors who spot an irrevocably changed market every few years, is in ample supply these days. Interest rates have reached a permanent low. U.S. stocks have reached a permanent high. FAANG stocks will rule markets for all time. Value investing is dead.
During previous bouts, Warren Buffett, America’s patron saint of investing offered his sage — and inevitably unpopular — perspective. When the dot-com mania raged in the late 1990s, he famously warned against chasing internet stocks. And during the depths of the 2008 financial crisis, he implored investors not to give up on U.S. stocks. Of course, neither episode turned out to be different from the innumerable ones that preceded it, at least when it comes to investing.