The financial world cannot get enough of Warren Buffett. As we reported today, US business television network CNBC aired a three-hour interview with the Oracle of Omaha overnight, covering everything from emissions trading and politics through to inflation and investing.
There was plenty of Buffet’s quirky side on display – including his seemingly never-ending World War II references and the fact he did the interview from the showroom of a furniture store he owns – but from a wealth perspective, what really stood out were his comments on share investing.
Buffett confirmed that he is still buying equities, despite the fact that world sharemarkets continue to nosedive. He argues that over a 10 or 20 year period, shares outperform most other forms of investment.
“If you buy a cross section of good equities, generally well-capitalised companies, you’ll make money over 10 or 20 years. I haven’t the faintest idea where you’ll be in 10 months, but it really doesn’t make any difference.”
And just to prove how powerful Buffett is, shares in banking group Wells Fargo climbed almost 25% after he claimed the future looked bright for banking stocks.
Who else could claim to move markets in the way Buffet is able to?