the stock god and the financial black swan: embrace stability or take a gamble?

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

in 2006, the subprime mortgage crisis hit the united states and the financial market fell into chaos. this was the beginning of buffett's strategy of "abandoning stocks and investing in bonds". he foresaw the financial risks in the united states and invested his funds in the bond market to obtain stable and solid returns. his approach was not blind speculation, but based on a deep understanding of economic fluctuations and risks.

when the u.s. economy was in recession, buffett's investment philosophy was completely different from other investors. he hoped to see continuous growth rather than short-term gains from a single high-risk investment. this "sound" investment philosophy surprised many people that he did not pursue "high returns" as people imagined, but focused more on steady and sustainable returns.

the turmoil in the us economy is not accidental. the middle east crisis, the conflict between russia and ukraine, the housing problem and the us$35 trillion us debt crisis are all black swans reminding us that risks in the investment market are inevitable and we need to be cautious at all times. buffett showed a sensitivity to risk by "abandoning stocks and investing in bonds". he understands that a sound strategy is the most important in economic fluctuations.

however, from a historical perspective, the phenomenon of economic recession after the fed cuts interest rates is also a common phenomenon. the lessons of the internet bubble in 2002 and the subprime mortgage crisis in 2007 have made us more aware of the risks brought about by the possibility of the fed cutting interest rates.

the prudent investment philosophy represented by buffett is not to avoid risks, but to find a balance in risks. he seeks safe and sustainable returns in economic fluctuations by "abandoning stocks and investing in bonds". his investment philosophy may inspire each of us to find the most suitable path for ourselves when facing risks and opportunities.