It appears that Berkshire Hathaway chairman is handling the COVID-19 crisis in much the same way as the Great Recession
As the coronavirus crisis unfolds, many are asking, “Where in the world is Warren Buffett?”
They want to hear and see more from America’s most literary and famed investor, noted for both calm and prowess in times of distress. People know the current economic chaos is more acute than any in living memory, including the 2008-09 financial crisis, and everyone would welcome more clarity from the great oracle.
Luckily, we don’t have to wait long: On Saturday, May 2, Buffett will host the annual shareholder meeting for Berkshire Hathaway BRK.A, +0.64% , BRK.B, +0.50%. Given the situation, we expect a lot of fielding questions to come.
For starters, those who interpret Buffett’s perceived silence as an ominous sign should consider a few points. First, Buffett has been as vocal during this crisis as he has been in others — and his tune has not changed. For instance, on February 24, as the pandemic gathered lethal force, Buffett sat for an interview with Becky Quick of CNBC. While he called the pandemic “scary stuff,” he also said it does not alter his long-term outlook or approach. Disciplined fundamental business analysis remains vital.
“Buy American — I Am!”
Right now, many yearn for the soothing reassurance from Buffett they recall reading during the last one. If you recall, on October 17, 2008, Buffett penned an op-ed in The New York Times, a cheerleading piece for the national economy called “Buy American—I Am.”
As for the lack of headlines today concerning Buffett’s investment activity, observers are recalling how Berkshire made numerous opportunistic investments early in the 2008-09 crisis.
Despite the greater acuteness of today’s crisis, Buffett does not appear to be rattled by it. Perhaps this is because no matter how catastrophic and unprecedented the medical and economic havoc may be, such a catastrophe did not come as a complete surprise to him.
People have long dubbed Buffett the “Oracle of Omaha,” a moniker that still fits. The upshot for Berkshire may remain the same too, as taken from his 2019 message:
“When such a mega-catastrophe strikes, Berkshire will get its share of the losses and they will be big — very big. Unlike many other insurers, however, handling the loss will not come close to straining our resources, and we will be eager to add to our business the next day.”