The pandemic, with its business closures and layoffs, has forced millions of Americans to rely on their credit cards to cover basic financial needs. Take full advantage of low interest ratesīuffett says if you're carrying credit card debt, get rid of it Today, you can connect with a certified financial planner online and inexpensively to keep you on track toward your long-term goals. During the Berkshire meeting, he was even reminded that he once said holding on to a stock forever “was too short a time period.”īe like Buffett: A financial planning service can help you sit tight and stay focused with your investments, and using one is much more affordable and convenient than you might think. “You can bet on America, but you have to be careful about how you bet,” he said, later reiterating that the world can change in “very, very dramatic ways."īuffett has never wavered from his belief that holding on to stocks long term is the right investment play for a stable financial future. economy will bounce back from the COVID crisis, but he told his shareholders that the future is far from certain. Stick to your long-term planīuffett says stay on target with your financial goals.īuffett remains confident that the U.S. But several investing apps are available that can make the process a lot easier.įind out which investing app is right for you and get in the game. airlines, but Buffett has little confidence in the sector’s economic fundamentals.īe like Buffett: Choosing the right stock out of thousands of potential options can make for a confusing entrance into the market. That stock has since recovered, along with those of other major U.S. One of the carriers Berkshire dumped from its portfolio was Delta Air Lines, whose shares lost more than half their value between March 1 and May 15 last year. “I still wouldn’t want to buy the airline business,” Buffett told his Berkshire shareholders. The industry has months to go before anything resembling normal business - and normal profit margins - return. Take that support away, and you’d be looking at an entirely new kind of airplane disaster. Airlines survived with help from government support. The coronavirus crisis has ravaged entire industries. Investors should stay wary of some investmentsīuffett has gotten out of airline stocks because of COVID-19. With worldwide demand for food rising, farmland will only grow more attractive as an asset. That makes it a better performer than most stocks or other forms of real estate. The average rate of return on farmland over the past 47 years has been better than 10%. One solid long-term investment play is farmland. You’ll want to get a headstart on making up for whatever shortfalls might await you. Before the pandemic started, state pension plans were already $1 trillion short of the funding they’d need to meet their future obligations to retirees, according to the Pew Charitable Trusts.īe like Buffett: If you have a traditional pension plan, you may not be able to count on it to provide for you in retirement. The pandemic has been murder on states’ finances and will only exacerbate a pension problem that currently has no long-term solution. It has not gotten better at all, obviously.” “The pension situation is terrible in a great many states,” Buffett said. One of the more alarming trends Buffett dove into during the Berkshire meeting was the increasingly shaky status of many state pension funds, an issue he said he'd had his eye on since 2013. Be practical - even when the market's losing its mind You can start building a diversified portfolio merely by investing your "spare change." 2. "I like Berkshire, but I think that a person who doesn’t know anything about stocks at all, and doesn’t have any special feelings about Berkshire, I think they ought to buy the S&P 500 index," Buffett told shareholders at the meeting in Los Angeles.īe like Buffett: Getting in on the S&P 500 through an ETF or mutual fund doesn’t require a store of cash. Despite the pandemic, the S&P 500 surged 16% in 2020, and it has been hitting new highs in 2021. S&P 500 index funds are mutual funds or ETFs mimicking the familiar stock index that tracks 500 of the largest companies in the U.S. “I recommend the S&P 500 index fund, and have for a long, long time to people,” Buffett said, adding that, upon his death, 90% of the money he leaves his wife will go into an S&P 500 fund. During the annual meeting of his company Berkshire Hathaway last month, Buffett talked up his favorite investment - which has been a winner during the COVID crisis.
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