Warren Buffett came under fire for not getting out his elephant gun to make a big purchase during the market lows during the first half of 2020. Here’s how he explained it at the Berkshire Annual Meeting.
Buffett manages risk at Berkshire. He pointed out that the U.S. response to the pandemic was managed very well. Importantly though, it didn’t have to be. He saw a critical point as the intervention of the Fed on March 23rd 2020. Before that, companies were starting to pick up the phone and call Berkshire for help, after the Fed’s actions, help wasn’t needed. Then the fiscal reaction with the CARES Act was favorable too.
Buffett didn’t view this outcome as a certainty and viewed worse outcomes as possible. As much as he enjoys making money, he views it as more important that he doesn’t lose it and the range of potential outcomes early …