Warren Buffett pointed out the main difference between him and Wall Street to shareholders in his last letter Berkshire Hathaway(NYSE: BRK.A)(NYSE: BRK.B)A number of he noted that he does not use earnings before interest, tax, impairment and depreciation (EBitda), meaning the financial meter as a “Favorite Favorite of Wall Street.”
This effects of this EBITDA variety reflects only the tip of the iceberg, which can be described as diametrically different prospects. Buffett knows that something is not Wall Street. The answer is as simple.
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Until recently, Wall Street seemed to look down. Is S & P 500 From January 1, 2025, from February 18 to January 1 and February 18, it increased by 28.5%. However, the figure fell from 7% to its top.
Why probably the biggest reason is that investors are worried about the negative impact of what is recommended by Trump Tariffs:A number
The interesting thing about all this is that President Donald Trump (or at least taking preliminary steps) is what he said to do the second president. Trump promised tariffs. Now he moves to carry them out.
However, any hint of tariff charges allows you to relieve Wall Street. Can you say that the market is in the “Hope / Anxiety” cycle?
Meanwhile, most of the analysts still offer to buy shares that have announced bull market for several years. For example, 58 out of 63 analysts surveyed ULG In the field of battle Nvidia As a buying or strong purchase to keep stocks storage.
This optimism is not limited to nvidia. However, Wall Street remains positive, despite the stock market, which is assessed at historically high levels. Just look at Shiller S & P 500 Cape ratio. Despite the decline of the last few weeks, the assessment meter is still on its second high.
Buffett hasn’t been almost as rude as Wall Street. It is obvious from his actions, as the stock market has increased.
For one thing, the Multibillionaire investor is a net seller of shares for nine consecutive quarter. Of course, Omaha Orlan continues to buy several shares. However, he does not find much of his wishes these days.
In the fourth quarter of 2024, BUFFETT did not allow Berkshir Hatava’s shares.
What Buffet? have Although he did it, he was building massive cash reserves. He tried to stop it in his last letter to the shareholders of “Berkshir Hatavai”, announcing:
That’s right. However, it is true that the cash position of Berkshire is $ 334.2 billion is to be Emergency (as shown the following table).
Buffett knows something that Wall Street is not. Yes. And I think it is possible to be summarized by one of his most famous statements. “We’re just trying to be afraid when others are greedy and greedy only when others are afraid.”
Buffett understands that the best times are to buy shares are when they are sold. He did not clearly thought that this happened, although analysts continue to urge investors to gain a fist.
Perhaps the most important thing is the buffet that Wall Street seems to be in the center of long-term focus. I doubt that he is worried about the impact of tariffs because he expects them to be temporary. As Buffett recently wrote about the shareholders of Berkshire on shares, the conglomerate belongs to.
Over time, we think it is very likely that profits will prevail. Why should we go to those securities? – Despite the end of the year, the number of years will be spent wildly and unpredictable. For such obligations, our horizon is almost always longer than a year. In many people, our thinking includes decades. These longments are the purchases that sometimes make cash registers like church calls.
You will not hear a lot, if any, people in Wall Street make such a statement. But Buffett’s long-term prospects are the main reason that he was so successful. The difference between her Outlook vs. Wall Street is really clear as the day.
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Kaiti Speights He has positions in Hatavaya, Berkshire. Motley Fool has positions and offers Berkshire Hatavayan and Nuidia. Motley Fool has Discovery Policy:A number
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