Ridiculous question right? After all, Warren Buffet has been investing for decades and is legendary in the investment world for proving time and time again that he has an uncanny ability for picking winners. But hold on a minute, check out this article. We are pretty sure that here at Metis Ireland none of our clients have lost 11% this year. Some of our clients who have decided to take more than average risk have suffered some losses, especially those who invested around late spring early summer. But these clients knew exactly the investment risk they were taking and invested for the long haul. (This by the way is another first from Metis Ireland – a financial advisory firm admitting that, yes, sometimes the investment portfolios of our clients fall back in value!).
But does any of this matter? Absolutely not! For a few reasons:
1) Anyone investing in Warren Buffet’s company, Berkshire Hathaway are high risk investors. Investing in one particular stock is always going to be a bumpy ride and I am sure the vast majority of investors are putting little or no emphasis on this year’s performance. After all, Buffet’s record over the past 50 years is over 21% per annum.
2) Assessing any investment over a nine month period is not something that anyone should be doing. All investments (that carry investment risk) should be viewed as a minimum 5 year plan. Short term losses should not be considered catastrophic, in fact they should be expected. If you are a medium to long term investor, then short term market volatility should not concern you.
3) Almost everyone who has invested in Berkshire Hathaway will have other investments. This serves to diversify (there’s that famous DIVERSIFY word again!) the investment. Diversification in asset classes serves to limit the losses of a particular part of the portfolio. Therefore, looking at Berkshire Hathaway in isolation is largely irrelevant for most investors.
In conclusion, Warren Buffet’s legendary status remains intact. However, we believe you should still partner with Metis Ireland because:
- We will establish an investment portfolio that matches your attitude to investment risk
- We will regularly review your portfolio
- We will save you from making any “emotional” investment decisions
- The Metis Ireland team will partner with you for the long term
If you are still not convinced, give Warren a buzz and see if he will help out!!
Director and Co-Founder
Metis Ireland Ltd t/a Metis Ireland is regulated by the Central Bank of Ireland. All content provided in these blog posts is intended for information purposes only and should not be interpreted as financial advice. You should always engage the services of a fully qualified independent financial adviser before entering any financial contract. Metis Ireland Ltd t/a Metis Ireland will not be held responsible for any actions taken as a result of reading these blog posts.