讀後心得

U.S. President Trump announced a "reciprocal tariff" policy, expecting negotiations with various countries, but it triggered strong countermeasures from China and European allies, potentially leading to a global trade war. Panic spread across the market, and global stock markets faced significant selling pressure. Buffett urged investors to remain rational and recommended Rudyard Kipling's poem "If" to stabilize their mindset. On the 3rd of this month, the three major U.S. stock indices suffered heavy losses, with technology stocks like Apple and Nvidia experiencing a substantial decline in market value. Buffett's company Berkshire Hathaway performed relatively steadily during this stock market crash, holding a large amount of cash, and the market is keenly watching when he will take a contrary position.

U.S. President Trump announced a "reciprocal tariffs" policy, waiting for countries to negotiate, but unexpectedly faced strong countermeasures from China and European allies, potentially triggering a global trade war. A sense of panic spread in the market, with global stock markets experiencing significant selling pressure. In the midst of investor panic, the "Oracle of Omaha," Warren Buffett, advised investors to remain rational and recommended the poem "If" by British poet Rudyard Kipling as a spiritual pillar during chaotic times.

On April 3, the three major U.S. stock indexes experienced their largest drop since the COVID-19 pandemic. The Dow Jones Industrial Average fell sharply by 1,679.39 points (a decline of 4%), closing at 40,545.93 points; the S&P 500 index also dropped by 274.45 points (a decline of 4.8%), ultimately closing at 5,396.52 points; the Nasdaq Composite Index plummeted by 1,050.44 points (a decline of 6%), closing at 16,550.61 points; the Philadelphia Semiconductor Index suffered a sharp decline of 427.07 points (a decline of 9.88%), closing at 3,893.69 points. Tech stocks became the focus of market attacks, with leading stocks like Apple, Nvidia, and Tesla generally declining, resulting in the evaporation of hundreds of billions of dollars in market value.

Investors were extremely uneasy about the potential economic recession and rising inflation brought on by the possible "tariff tsunami" and "global trade war," and the market was once again shrouded in the shadow of stagflation. Whenever the market experiences panic, Buffett's words and actions receive significant attention. He emphasizes maintaining belief in oneself during the storm and recommends everyone read Kipling's "If." One classic line reminds us: “If you can keep your head when all about you Are losing theirs and blaming it on you...” This line stresses that remaining calm in the face of others' fears is key to seeing true value.

It is worth noting that Buffett's Berkshire Hathaway demonstrated extraordinary resilience during the stock market crash, with Class B shares only declining by 1.4%, significantly outperforming the broader market. Although Berkshire's holdings, including Bank of America, Chevron, and American Express, also faced adjustments, Buffett had already reduced his stake in Apple, which saw its market value plunge by more than $300 billion on April 3, highlighting Buffett's foresight.

Analysts point out that Berkshire maintains a solid presence in the insurance industry and has a robust asset allocation with a significant holding of short-term U.S. Treasury bonds, remaining steady in the face of market storms. The reason Buffett can remain calm is due to his substantial cash reserves, which reached $334.2 billion by the end of 2024. The market currently looks forward to Buffett taking action to acquire companies or buy stocks at low prices during times of fear, just as he demonstrated during the 2008 financial crisis with his contrarian operations.

At this time, we can revisit a line from Buffett's favorite "If": “If you can meet with Triumph and Disaster And treat those two impostors just the same...” This statement reminds people that whether in the brilliance of a bull market or the panic of a crash, both are illusions in life and investment, and what is truly dependable is calmness, discipline, and a long-term vision.