INVESTING LESSONS AMIDST VOLATILE TIMES

THE surge in conflict in the Middle East put financial markets in a tizzy.

- RAJAS KELKAR

Investors, big or small, would look for a quick end to this escalated situation. Financial markets don’t like uncertainty.Amidst the flow of conflict news, Berkshire Hathaway, a company spearheaded by legendary American investor Warren Buffett, witnessed history. For the first time, Greg Abel, the company’s new chief executive officer, wrote the shareholders’ letter. Warren Buffett last year announced that he would no longer write them.

The letter maintains the same style and spirit of writing about Berkshire values, investment philosophies and disclosures. The idea is to maintain continuity in communication with shareholders. The inadvertent outcome is a masterclass in personal finance. A simple explanation of ways to picking stocks. Conversations in the Berkshire documents are never about short-term. They are always about riding through cycles over decades once you make those investments. The recent developments may not have significance in the situation.

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