how to benefit in times of crises - COVID-19 - Corona

[Martin Everson]

suppliersten said:
Would anybody invest in emerging markets liek Brazil EWZ or Latin America ILF that have lost decades of values now?
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Those two are quite weighted towards oil & gas and financials (over 40% each). You have to have a strong conviction that those areas will return value long term.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[simmonjoshua]

This is very informative and crucial discussion at this time. Thank you.

 

[jafo]

Martin Everson said:
They are fools. You don't buy an overvalued index...lol. The S&P has been overvalued for some years sadly. You make money by buying low and selling high. The entire market has for some years been buying high and looking for a bigger fool. The stock prices are driven by low interest rates, free cash and share buy backs. Half the companies in the S&P 500 are not making any money in reality. A couple of years ago when I checked, just over 6% of the companies listed on the S&P 500 accounted for 50% of all its profit.
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I know I am late to the party, but I mostly write to inculcate & for my benefit...

Having said that, your statement above is entirely consistent with what Warren Buffett and Charlie Munger, hereinafter WBCM, say about BRKA/B when asked by potential shareholders if they should buy BRKA/B stocks. WBCM deflect by saying they bought their shares a long time ago and that the potential buyer should do their own research.

Now, a lot of things make more sense. Thanks!