Monday, April 9, 2018

Microsoft Founder Foresees Another Financial Crisis Ahead

According to one of the world's wealthiest and most respected businessmen and philanthropists,,Microsoft principal founder and billionaire Bill Gates,another shattering downturn is on the way.Making his annual appearance on the Reddit programme "Ask Me Anything" on 27 February 2018,Mr.Gates opined:
It is hard to say when,but this is a certainty.
Fortunately,we got through the last one (2008) reasonably well.Warren (Buffett,billionaire co-founder of Berkshire Hathaway) has talked about this and he understands this area far better than I do.Despite this prediction of bumps ahead,I am quite optimistic about how innovation and capitalism will improve the situation for humans everywhere.*
Mr.Gates had a bit of advice for investors in the face of this warning:
If you aren't willing to own a stock for 10 years,don't even think about owning it for 10 minutes.*
Mr.Buffett had these words for investors in his 2018 annual letter to Berkshire Hathaway investors:
It is a terrible mistake for investors with long-term horizons-among them,pension funds,college endowments and savings-minded individuals-to measure their investment "risk" by their portfolio's ratio of bonds to stocks.Often,high-grade bonds in an investment portfolio increase its risk.*
There is simply no telling how far stocks can fall in a short period.Even if your borrowings are small and your positions aren't threatened by the plunging market,your mind may well become rattled by scary headlines and breathless commentary.And an unsettled mind will not make good decisions.*
Stick with big,"easy" decisions and eschew activity.*
Microsoft (MSFT),Berkshire Hathaway Inc. Class B Shares (BRK.B)

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