the beginning:
Warren Buffett, known as the “Godfather of Investing,” began his journey in the world of finance at a young age. At the age of 11, he bought his first stock. Over the years, he developed his strategy of investing long-term in companies with real value.
Main event:
In 2008, during the global financial crisis, markets were suffering from massive collapses. Major financial institutions, such as Lehman Brothers, lost market confidence, and everyone panicked, selling stocks at very low prices.
Unlike everyone else, Warren Buffett saw this crisis as a rare buying opportunity. Buffett invested billions of dollars in strong but troubled companies, such as:
Goldman Sachs: He offered her $5 billion in investment, negotiating a deal that would guarantee him high profits.
General Electric: He bought its shares when their market value had lost a significant portion of its value.
Despite the fear in the market, Buffett relied on his long-term vision and belief that these companies have strong fundamentals and will recover in the future.
Result:
By 2013, five years after the crisis, Buffett had made billions of dollars in profits from these investments.
The stock market recovered, and the value of the companies he invested in rose.
His decisions during the crisis have become an example to be studied in the investment world.
Lessons from the story:
1. Patience: Buffett did not get carried away by the wave of panic, but rather saw the crisis as an investment opportunity.
2. Deep research: His decisions were based on his deep understanding of the companies he invested in.
3. Long-term investing: Focus not on immediate profits, but on the potential for long-term recovery and growth.
Warren Buffett always repeats his famous advice:
> Be fearful when others are greedy, and be greedy when others are fearful.