Warren Buffett: Why Your Investment Portfolio Is Insurance Against Financial Crisis

Warren Buffett: Why Your Investment Portfolio Is Insurance Against Financial Crisis

While the investors are immersed in a sea of ​​doubts due to the financial crisis, Warren Buffett’s portfolio continues to show resistance.

That’s how he assured it Jeffrey Quiggle at The Street who praised Berkshire Hathaway for its resilience and diversification.

“We weren’t too surprised to see stories emerging over the weekend about Warren Buffett, the CEO of Berkshire Hathaway, being in talks with the Biden administration over the banking crisis, as well as mainstream media reports that several jets privateers have arrived in Omaha this weekend,” wrote Morningstar’s Greggory Warren on March 19.

There have been other times when companies have sought capital from Berkshire. The “Buffett Seal of Approval” is valued in part because it increases confidence in a company’s actions.

“This was most evident during the financial crisis of 2008-2009, when Berkshire took advantage of its strong balance sheet, large cash excesses, and the value that struggling companies (and their investors) placed on Buffett’s endorsement of their deals. ”said Morningstar’s Warren.

Warren notes that Morningstar continues to trust Berkshire in the current climate. “We continue to believe that Berkshire, due to its diversification and overall lower risk profile, offers one of the best risk-adjusted return profiles in the financial services industry (and remains a strong overall candidate for fall protection during market sell-offs),” Warren noted.

The relative confidence in Buffett’s company that investors have shown has apparently seen another opportunity.

We believe Berkshire’s decentralized business model, broad business diversification, high cash generation capabilities, and unmatched balance sheet strength are true differentiators for the company.”Warren added.

Source: Ambito

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