Warren Buffett Says ‘The Average Person Can’t Pick Stocks’ As A Warning Of A Wave Of Amateur Investors Who Started Trading During A Pandemic
Investment guru Warren Buffett said last night that the “ average person can’t pick stocks ” in a warning to the wave of amateur investors who started trading during the pandemic.
Buffett addressed his annual shareholders’ meeting – dubbed ‘Woodstock for Capitalists’ – and said armchair dealers should simply invest in US listed companies.
Sage advice: Warren Buffett and said armchair stock sellers should just invest in US listed companies
Sipping a can of Coca-Cola, the Omaha sage said, “I love [my investment company] Berkshire, but I think someone who doesn’t know anything about stocks or has any feelings about Berkshire should buy the S&P 500. ‘
Buffett also admitted that his decision to sell Apple stock last year was “probably a mistake”, calling it an “extraordinary undertaking.” Despite this, the value of the 5 percent stake has nearly doubled from $ 64 billion to $ 121 billion in the past year.
Buffett surprised his more than a million shareholders with an initial Apple investment of $ 1 billion in 2016.
He was given suggestions at the time that the stock might have peaked, but the stock has since risen nearly 500 percent, bringing the company’s value to a dazzling $ 2.24 trillion (£ 1.62 trillion). Apple posted record quarterly sales last week when consumers switched to the first generation of 5G-compatible iPhones.
Buffett’s stake in Apple has gained $ 10.2 billion in the past month alone, AJ Bell said. Apple represents 43 percent of Berkshire Hathaway’s portfolio, which also includes stakes in Bank of America, CocaCola and American Express.