In an auditorium full of Omaha, Warren Buffett, from 94 yearsoffered His latest message as executive director of Berkshire Hathaway. He did it with the serenity that characterizes his style and with a direct warning: the most expensive errors in finance do not come from the lack of technical knowledge, but of decisions taken under emotional pressure. “People have emotions, but you have to leave them at the door by investing”he said, he said MarketWatch.
In his speech, Buffett appealed to a historical perspective. “I was born in 1930. when I was born, things became much more attractive during the next two years and, apparently, I did nothing about it,” he said humorously, referring to the Burstile Crack of 1929.
In that line, he added: “That was the opportunity of my life and was missing it, you know, worrying about the child of the cradle to the side or something.”
Far from being an unimportant anecdote, this reflection shows its long -term vision and its ability to maintain emotional calm In the middle of chaos. “Yeah Berkshire I would go down 50% next week, I would consider it a Fantastic opportunity And I wouldn’t worry at all, “he said. And he clarified:” It’s not that I don’t have emotions, but I am not excited about the prices of actions. “
Buffet described how mass psychology can become an opportunity for those who achieve detach yourself emotionally of the market. “We will make our best offers when people are more pessimistic,” he said, remarking that emotions can be great enemies for rational decisions.
“People make their worst decisions when they are under pressure, feeling angry, fearful and stressed”, and this combination “leads to irrational decisions and, therefore, very expensive,” says the publication of MarketWatch.
Also details several of the Psychological traps in which investors fall: the Flock mentalityhe excess confidence bias and the aversion to losses. These distortions can lead to serious errors, such as buying or selling impulsively. The multitude of mental traps that panic investors fall could be what Buffett referred to when he talked about how “psychology” influences the profitability of their company.
-Buffet, would seem to see the human behavior From outside, as an alien that observes human behavior from afar and that uses that understanding to generate intelligent and informed investment decisions that benefit their shareholders.
The veteran investor also referred to Impact of personal ties about the economic destiny of people. “Who do you relate is very important,” he said, highlighting the value of “people who make you want to be better than you are.”
In his vision, the breedinglos friends and the couple’s choice They are as relevant as the investment strategy. “Your life will progress in the general direction of the people you work with, to whom you admire and become your friends.”
To their 94 yearsBuffett announced that he will leave the position of Executive Director Berkshire Hathaway at the end of this year, but will continue as President of the Board of Directors. This decision is located between a very small group: according to data from the current population survey cited by MarketWatch“There were just under 6,000 people 95 years old in the workforce, of a population of almost 188,000.”
Buffett’s retirement represents not only a change of era for markets, but also a milestone in labor longevity. As the same medium points out, “0.2% of the 1.79 million people who requested benefits for the first time in 2023 were 75 years or older”, which makes their continuity extraordinary.
Throughout his exhibition, Buffett insisted on the idea that economic crisis —As depressions, recessions, wars or pandemics – can be overcome if a long -term vision. “Life can be wonderful even with some bad moments,” he said.
Its final message is clear: for investors, Mortal enemies They are the fear and the greedand success depends on looking to the future with rational optimism y Emotional discipline.
