For a few days, the Ukraine war is a reality, and with it, the era of a new Cold War! The world’s most famous investor, Warren Buffet, has warned against dumping stocks, hoarding cash, and buying gold or bitcoin in war times. He believes investing in businesses is the best way to build wealth over time. The Berkshire Hathaway CEO told CNBC in March 2014 that Russia’s invasion of Ukraine at the time wouldn’t spur him to sell any stocks.
“If stocks are cheaper, I’ll be more likely to be buying them,” he said, adding that he wouldn’t cash out even if the conflict escalated into another cold war or World War III. “Well, if you tell me all of that is going to happen, I will still be buying the stock,” he said. “You’re going to invest your money in something over time. The one thing you could be quite sure of is if we went into some very major war, the value of money would go down.“
Buffett emphasized that the US stock market rose during World War II and had marched higher over time. While good businesses will be worth more over time, dollars will be worth less, he concluded.
Warren Buffet for sure has a point here. He is considered one of the most successful investors in the world and has a net worth of over $114 billion as of February 2022, making him the world’s eighth-wealthiest person.