James Paul 
As he is required to do regularly, Warren Buffett, CEO of the company Berkshire Hathaway, addressed the shareholders in a new annual report. He takes the opportunity to develop the know-how and the knowledge he has acquired over the years.
Admit your mistakes
As spotted CNBCthe entrepreneur explains that he must always admit his investment errors and learn the lessons. He returned to an episode dating from 1962:
Although the price I paid for Berkshire seems cheap, his company (a large textile company editor’s note) – was doomed to extinction.
He then spent years trying to straighten it rather than focusing on the development of his insurance activity, a decision that would have cost him $ 200 billion.
Without reaching such amounts, for a modest investor, this can result in renouncing the action of a society in which a lot believed, but which struggles to concretize its ambitions.
Do not give up actions
Currently, Berkshire Hathaway holds the staggering sum of $ 334 billion in cash reserve. So much so that some observers wonder if the company does not anticipate a correction on the financial markets before reinvesting.
Warren Buffett says on the contrary: “Despite what certain commentators currently consider as an extraordinary cash position at Berkshire, the vast majority of your money remain in the actions. This preference will not change. »»
Be opportunistic
The entrepreneur offers to buy business actions that are negotiated at low prices compared to their true value. He indicates that we should not only invest in the American market, but that other places deserve our attention, especially for their low prices.
In this context, Berkshire Hathaway set his sights on the shares of five large Japanese companies in 2019 and continued to increase his participation since: “We simply examined their financial files and were amazed at the low price of their shares. Over the years, our admiration for these companies has continued to grow ”says the boss.
The good Warren Buffett pipes
In the past, the one we nicknamed Omaha’s Oracle had already distilled some advice to investors. Among his recommendations, two principles illustrate his investment philosophy. First, patience: the businessman recalls that fruitful investments require time, citing his long-term investments in Coca-Cola and American Express. Despite one -off errors, these companies have generated exceptional yields thanks to unshakable confidence.
He also suggests being suspicious of speculative bubbles: he compares the financial markets to casinos where ephemeral trends mask the risks. The bubbles, fed by the collective excitement, always end up bursting, confirming that “what the wise does at first, the madman does it at the end”. These lessons highlight the importance of resisting temporary modes and favoring a strategic vision, even in the face of economic turbulence. More information on this subject in our previous article here.
