讀後心得

U.S. President Trump announced a policy of reciprocal tariffs, hoping to negotiate with various countries, but this was met with strong countermeasures from China and European allies, leading to a global trade war. This caused a significant drop in global stock markets, leaving investors in a panic. Buffett urged to stay calm and recommended reading Kipling's poem "If" to stabilize the mindset. On April 3, the three major U.S. stock indices plummeted, with the Dow Jones Industrial Average falling over 1,670 points, and the S&P 500 and Nasdaq also experiencing substantial declines, heavily impacting technology stocks. Concerns about inflation and economic recession increased in the market. Berkshire Hathaway demonstrated resilience amid market turmoil, holding a large amount of cash, and Buffett is expected to potentially pursue acquisition opportunities at lower prices. He emphasized that remaining calm during panic is key to investment success.

President Donald Trump announced the implementation of a "reciprocal tariff" policy, expecting countries around the world to come for negotiations. However, what followed was a strong countermeasure from China and European allies, prompting a further escalation of the global trade war. Amid the panic, global stock markets faced significant selling pressure, leaving investors in a state of alarm; at this time, "Investment Guru" Warren Buffett advised investors to remain rational and recommended reading the poem "If" by 19th-century British poet Rudyard Kipling, as a spiritual support during chaotic times.

On April 3rd, the three major U.S. stock indices experienced their worst crash 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 dipped by 274.45 points, a decline of 4.8%, ultimately closing at 5,396.52 points; the Nasdaq Composite plummeted by 1,050.44 points, down 6%, closing at 16,550.61 points; the Philadelphia Semiconductor Index experienced a sharp decline of 427.07 points, a reduction of 9.88%, closing at 3,893.69 points. Tech stocks faced a severe blow, with leaders like Apple, NVIDIA, and Tesla all retreating, resulting in a market capitalization evaporation of hundreds of billions of dollars.

The market was extremely uneasy about the "tariff tsunami" and potential economic recession and rising inflation. The effects of stagflation cast a shadow over the market again. Whenever the market exhibited panic, Buffett's words and actions drew significant attention. He once again recommended Kipling's poem "If," whose core message emphasizes maintaining steadfast faith and believing in oneself amid the storm.

Buffett specifically 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 during others' panic can one see the true value of things. Notably, Berkshire Hathaway, led by Buffett, demonstrated remarkable resistance during the market crash, with Class B shares down only 1.4%, showing performance superior to the overall market.

Although Berkshire's holdings, including Bank of America, Chevron, and American Express, could not avoid price adjustments, Buffett had already significantly reduced his stake in Apple. With Apple's market capitalization suffering a decline of over $300 billion on the 3rd, it highlighted Buffett's foresight. Analysts pointed out that Berkshire Hathaway, due to its deep positioning in the insurance industry and substantial holdings in short-term U.S. Treasury bonds, maintained a stable asset allocation, allowing it to stay solid amidst market fluctuations.

The key to Buffett's composed mentality lies in abundant cash flow; by the end of 2024, Berkshire Hathaway's cash reserves had reached $334.2 billion. The market is also waiting to see when Buffett will take the opportunity to acquire companies and buy stocks at lower prices during fearful times, mirroring his counter-cyclical operations during the 2008 financial crisis. At this time, one can once again reflect on a passage from Buffett's beloved poem "If": "If you can meet with Triumph and Disaster and treat those two impostors just the same...". In Buffett's view, whether it's a booming bull market or a panicking crash, these are just fleeting illusions in the journey of life and investment. What truly deserves trust is calmness, discipline, and a long-term perspective.