Investing in the markets: what to learn from the first quarter of Warren Buffett?

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For those who want to invest in the markets, what to learn from Warren Buffett’s first quarter?

Anyone who wants to learn how to invest in the markets can look to Warren Buffett. What to learn from his moves in the first quarter of this year?

Record performance

On the markets, that record + 2,744,000% return since 1964, including dividends, made by Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is still an example for many investors. And not just for beginners. For this reason every move the Omaha oracle becomes a reason for study and observation. In addition to an indication for how to move on the markets. Even more if the markets themselves have come from one of the worst storms of the decade, if not in history. For those who want to invest on markets, what to learn from Warren Buffett’s first trimester? Paradoxically, what comes to us in these hours from the analysis of the documents held by the SEC is a lesson that nobody expected. In fact, unlike what happened in the past, there are strange anomalies in the moves and industrial strategies of Berkshire Hathaway. Anomalies that make you think of something. But let’s proceed in order.

Protect the investment portfolio

In 33 calendar days the S&P 500 has lost 34% of its value, which is now well known. Just as the recovery of the same American indices in an equally fast time is known. Just think, for example, of the Nasdaq which has returned close to the levels of its historical highs. A swing that has placed the ability to protect the investment portfolio at the center of the general interest. Here then is the need to look at who, of capital protection, has made its flag.

Looking at what has been filed by the Berkshire Hathaway with the Securities and Exchange Commission, it can be seen that the first quarter of 2020 was a particularly active period in terms of movements. Much less on the profit front. This suggests a first thing. Warren Buffett is undoubtedly worried about the stock market valuations that he continues to believe dearly.

Invest in the markets. What to learn from Warren Buffett’s first trimester?

Looking at his statements made on several occasions, there is no lack of encouragement towards a rosy future of the economy in general. And above all, the American one. However, the level of liquidity that the Warren Buffett holding continues to hold in its portfolio remains high. There is also another thing to note for those who want to invest in the markets. What to learn from Warren Buffett’s first trimester? Certainly his lieutenants are playing ever wider roles in managing the investment portfolio. Some moves, in fact, suggest that Todd Combs and Ted Weschler are probably exerting a greater influence on daily investments. There have been sharp reductions in equity holdings in the last quarter. Some were made for obvious regulatory reasons, others, on the other hand, seem to be specific investment choices that Buffett would hardly have made. But, in this case, it is an idea and not numbers.



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