“For some reason, markets now exhibit much more casino-like behavior than when I was young. The casino is now found in many homes and tempts its occupants daily.
The ‘oracle of Omaha’ thus referred to the ability of many individual investors to carry out operations from their homes, which, in his opinion, is accentuating the behavior of the markets as if they were games of chance.
Warren Buffett talked about psychology when investing
“Although the stock market is much larger than in our early years, the Today’s active participants are neither more emotionally stable nor better educated than when I was at school,” he added.
Buffett reflected again on the psychology of financial marketscommenting that “one fact of financial life should never be forgotten. Wall Street – to use the term figuratively – would like its clients to make money, but what really keeps the market’s juices flowing is a feverish activity“.
“In those moments,” he added, “any nonsense that can be promoted will be promoted vigorouslynot for everyone, but always for someone.”
Without referring to the market fever for artificial intelligencethe legendary investor has pointed out that “From time to time, the scene turns ugly. Then the politicians get angry; the most flagrant perpetrators of misdeeds slip away, rich and unpunished; and your friend next door becomes bewildered, poorer and sometimes vengeful. So learn that money has triumphed over morality“.
Finally, he indicated that “when economic disruption occurs, as it willBerkshire’s goal will be to function as an asset to the country – just as it was to a very minor extent in 2008-2009 – and help extinguish the financial fireinstead of being among the many companies that, inadvertently or not, ignited the conflagration.”
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
