讀後心得

U.S. President Trump announced a "reciprocal tariff" policy, leading to an escalation of global trade tensions and significant selling pressure in the stock market. Buffett urged investors to remain calm and recommended the poem "If" by British poet Kipling as guidance in times of chaos. On April 3, U.S. stock indices plummeted, with tech stocks like Apple and Tesla experiencing significant declines in market value. Buffett's company Berkshire Hathaway performed relatively well during the stock market crash, holding a substantial amount of cash to respond to market changes. He emphasized that maintaining calm amidst panic is key to long-term investing.

U.S. President Trump announced a "reciprocal tariff" policy, hoping countries around the world would come to seek negotiations. However, what he encountered instead was a strong countermeasure from countries like China and European allies, which further triggered a global trade war. In the atmosphere of panic, global stock markets experienced immense selling pressure, causing investors to panic. In this situation, "Oracle of Omaha" 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 3, the three major U.S. stock indices plummeted sharply, marking the worst situation 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 index dropped by 274.45 points (a decrease of 4.8%), closing at 5,396.52 points; the Nasdaq Composite Index plunged by 1,050.44 points (a decrease of 6%), closing at 16,550.61 points; and the Philadelphia Semiconductor Index declined by 427.07 points (a decrease of 9.88%), closing at 3,893.69 points. Technology stocks became the frontline of the bears' fierce attacks, with major stocks like Apple, Nvidia, and Tesla all experiencing substantial declines, resulting in a evaporation of market value worth hundreds of billions of dollars. Market investors felt extremely uneasy about the potential economic recession and rising inflation sparked by the "tariff tsunami" and the global trade war, with the shadow of stagflation looming over the market once again.

Whenever panic arises in the market, Buffett's words and actions naturally attract attention. He is currently recommending everyone read the poem "If" by British poet Rudyard Kipling, which emphasizes the necessity of maintaining belief and self-confidence amidst storms. Buffett quoted a classic line from the poem: “If you can keep your head when all about you Are losing theirs and blaming it on you...” to remind market participants that only those who remain calm in the face of others' panic can see the true value clearly.

It is worth noting that Berkshire Hathaway, led by Buffett, demonstrated remarkable resistance during the significant drop in U.S. stocks on the 3rd, with Class B shares only falling by 1.4%, significantly outperforming the broader market. Although Berkshire's holdings, such as Bank of America, Chevron, and American Express, were also affected, Buffett had already significantly reduced his stake in Apple, which saw its market value plummet by over 300 billion dollars on the 3rd, further highlighting Buffett's foresight. Analysts pointed out that Berkshire’s strong foundation in the insurance industry and its substantial holdings of short-term U.S. Treasury bonds provided a solid asset allocation, allowing it to remain steadfast during the market storm. The key to Buffett's ability to remain calm lies in his "ample cash flow," with Berkshire Hathaway's cash reserves reaching 334.2 billion dollars by the end of 2024.

The market is patiently waiting for Buffett to make a move to acquire companies or buy stocks at lower prices amid fear, reminiscent of his contrarian operations during the 2008 financial crisis. At this time, one can again revisit a passage from Buffett’s beloved "If": “If you can meet with Triumph and Disaster And treat those two impostors just the same...” In Buffett's eyes, whether it's a cheerful bull market or a panicked crash, both are illusions in the journey of life and investment. What truly deserves trust is calmness, discipline, and a long-term perspective.