For Warren Buffett, losses are not a bug – but a feature

Excellent: Buffett’s patent for alienating casual investors

Warren Buffett’s company Berkshire Hathaway lost 44 billion dollars in the second quarter of this year and the company’s stock fell by 2% in the last month. But when it comes to Buffett, who bought a textile company in 1965 and turned it into an investment empire worth $650 billion, losses aren’t a bug — they’re a feature. An effective patent for alienating people who don’t understand that short term is measured in quarters and even years.

This is precisely why his company is trading at a price of 440 thousand dollars per share, to filter out casual investors. And as one of the famous clichés of the 91-year-old man says: in a downturn, when the capital market is less bright, in general, everyone sees that he is swimming in a bathing suit. That’s how it is when he has more than 105 billion dollars in cash.

Insufficient: how a sector in crisis recruits twice as much as in previous years

A study published this week by the Bank of Israel on “the impact of market declines on the high-tech sector” reminds us all how quickly we are losing proportions. A wave of layoffs in startups? Out of 309.4 thousand Israeli hi-tech workers, only 8% of them – 27,330 Israelis, work in start-up companies, which are now, according to the Bank of Israel, “at high risk”. In fact, they are companies that are always at high risk, because that’s how it is with any dream that tries to break into the real world and become a viable product. Bottom line, even in the dismal 2022, about 10 billion dollars were raised here in the first half of the year for the high-tech industry. More than twice the rate of recruitment in 2019 or 2020, and a decrease of about 25% compared to 2021.

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