DISCLAIMER! Before making any financial decisions, please consult a qualified financial advisor. This video is not financial advice. I am not a financial professional and any financial actions based on information in this video are at your own risk. Remember that investing always involves risk, and past performance does not guarantee future success.
In this video, Warren Buffett explains how to invest in a rising interest rate environment. He compares the effect of interest rates on assets to gravity on matter, noting that they play a key role in financial markets. Lower interest rates make money cheap and available to consumers and businesses, boosting spending, profits and growth. However, as interest rates increase, working capital becomes more expensive, creating difficulties for businesses and reducing the funds available to consumers.
Buffett also discusses the impact of interest rates on the stock and bond markets, emphasizing that quality businesses remain attractive to investors even as interest rates rise. He encourages investors to focus on the long term and seize emerging opportunities to invest in quality assets at attractive prices.
15 мар 2024
