Billionaire Philosophy: Warren Buffett Interview

Many investors caught up in big growth stories in 2021 were hammered in 2022. However, those who followed a value approach fared relatively well. That’s because they likely didn’t overpay to get into hyped companies in the first place.

Over time, avoiding investment mistakes will help create the best long-term returns. That comes from focusing on current value and long-term potential, not just the latest headline-grabbing stock or trend.

So it’s no surprise that Berkshire Hathaway (BRK-A) has held up well this year. The company, managed by 91-year old CEO Warren Buffett, is up 2 percent against a 20 percent market drop.

Buffett has been around long enough to see how 2022 has been similar to markets in the past. But the real trick is to look beyond the market to the underlying businesses represented by stocks.

That may be why Berkshire is seeing relatively strong performance at a time when other sectors haven’t fared well.

While Buffett doesn’t see himself as looking to beat everyone else, he’s focused on buying great businesses, not stocks.

That distinction may be why the company seems to lag when investors are piling into technology and other growth stocks.

But the ability of value investors to hold up during bear markets takes the wild swings out of the market. The returns come from long-term patience, not looking at short-term moves in the market.

To see the full interview, click here.