讀後心得

U.S. President Trump announced a "reciprocal tariff" policy, hoping countries would negotiate, but this triggered a strong counteraction from China and the European Union, leading to an escalation of the global trade war. Amid panic, global stock markets plummeted, particularly the three major U.S. indices. Investment guru Warren Buffett reminded investors to remain calm and recommended reading the poem "If" by British poet Rudyard Kipling, emphasizing the importance of holding onto one's beliefs in chaos. Berkshire Hathaway demonstrated strong resilience during this stock market crash, showcasing Buffett's keen judgment. As market anxiety increases, investors are curious whether Buffett will take advantage of the downturn to engage in mergers and acquisitions and buying.

The President of the United States announced a "reciprocal tariff" policy, hoping that countries would come to negotiate, but unexpectedly faced a strong backlash from China and European allies, further triggering a global trade war. Amid the panic atmosphere, global stock markets faced immense selling pressure, and in the midst of investors' panic, the "Oracle of Omaha" suggested that investors remain rational and recommended reading the poem "If" by 19th-century British poet Rudyard Kipling as a spiritual refuge during chaotic times. On April 3, the sharp decline of the three major U.S. stock indices was the worst since the COVID-19 pandemic. The Dow Jones Industrial Average fell by 1,679.39 points (a decrease of 4%), closing at 40,545.93 points. The S&P 500 plummeted by 274.45 points (a decrease of 4.8%), closing at 5,396.52 points. The NASDAQ Composite Index collapsed by 1,050.44 points (a decrease of 6%), closing at 16,550.61 points. The Philadelphia Semiconductor Index tumbled by 427.07 points (a decrease of 9.88%), closing at 3,893.69 points. Technology stocks became the primary target of aggressive short selling, with leading companies like Apple, Nvidia, and Tesla all declining, evaporating hundreds of billions of dollars in market value. Market investors were very uneasy about the potential economic recession and inflation increase that the "tariff tsunami" and "global trade war" could trigger, and the shadow of stagflation loomed over the market again. Whenever market panic arises, Buffett's words and actions are closely watched. This time he again recommended reading Kipling's "If," which emphasizes the importance of maintaining faith and believing in oneself during adversity. Buffett quoted a famous line from the poem: "If you can keep your head when all about you are losing theirs and blaming it on you..." He reminded market participants that only by remaining calm when others panic can one see the true value. It is noteworthy that Buffett's company demonstrated remarkable resilience during the stock market crash on the 3rd, with B shares only dropping 1.4%, significantly outperforming the broader market. Although the company's holdings such as Bank of America, Chevron, and American Express were also affected, Buffett had significantly reduced his holdings in Apple long before. On the 3rd, Apple’s market value plunged by over $300 billion, highlighting Buffett's foresight. Analysts indicated that due to the solid foundation in the insurance industry combined with a substantial allocation of short-term U.S. Treasuries, Buffett's company performed steadily amidst the market storm. The key to Buffett's calm mindset lies in holding a large amount of cash; as of the end of 2024, the company's cash reserves reached up to $334.2 billion. Market participants are patiently waiting for Buffett to seize opportunities to acquire companies or buy stocks at lower prices, reminiscent of his counter-cyclical operation during the 2008 financial crisis. At this moment, let’s revisit a line from "If": "If you can meet with Triumph and Disaster and treat those two impostors just the same..." In Buffett's view, whether the market is good or bad, they are all illusions on the journey of life and investment. What is truly trustworthy is calmness, discipline, and a long-term perspective.