Back in 2009, during a CNBC Town Hall Event with Bill Gates, Warren Buffett sat down and gave some of the most no-nonsense, practical investment advice you’ll ever hear. It was the aftermath of the financial crisis, panic was everywhere, and people didn’t know where to turn. But Buffett, he stayed calm, as always, and reminded everyone that the fundamentals of investing hadn’t changed — and never will.
First off, Buffett made it clear that what kind of investor you are matters a lot. “It depends whether you’re going to be an active investor,” he said. “If you are going to spend a lot of time on investment… I just advise looking at as many things as possible and you will find some bargains.” That’s classic Buffett — roll up your sleeves, do the work, and you’ll uncover value others miss.
He recalled how he got started, right out of school: “I turned every page in Moody’s — 10,000-some pages — twice, looking for companies.” That’s the grind it takes if you want to beat the market. “The world isn’t going to tell you about great deals. You have to find them yourself.”
But he’s not saying everyone should do that. If you’re not interested in spending the time, there’s no shame in going passive. “If you are just going to be a passive investor, then I just advise an index fund more consistently over a long period of time.” Simple, steady, and proven to work.
One of his strongest takes came when he talked about cash — something people were clinging to in the crisis. “The worst investment you can have is cash,” he said flat-out.
“Everybody is talking about cash being king… Cash is going to become worth less over time. But good businesses are going to become worth more over time.”
Still, he’s not reckless. “We always keep enough cash around so I feel very comfortable and don’t worry about sleeping at night.” It’s not about hoarding cash — it’s about having enough so “nobody else can determine your future.”
And his closing advice? Don’t wait around trying to time the perfect entry. “Don’t pass up something that’s attractive today because you think you will find something way more attractive tomorrow.” That kind of thinking makes you miss the real opportunities.
You can read an unofficial transcript of the event here:
Buffet and Gates CNBC Town Hall Event
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