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Warren Buffett warned of the effects of coronavirus

UNITED STATES (OBSERVATORY NEWS) — The head of the Berkshire Hathaway foundation, Warren Buffett, called the outbreak of coronavirus a “scary thing,” noting that now is not the time to sell shares, despite the threat of a pandemic virus, the agency reports. Reuters.

In a CNBC interview, Buffett said the outbreak of the Chinese coronavirus did not change his long-term plans.

According to Buffett, the coronavirus is a “terrible thing”, but he does not think that this should affect those who invested in stocks.

As you know, on February 24, world markets fell due to fears that the outbreak of the coronavirus Covid-19, which began in China and spread to countries, including Italy, South Korea and Iran, could disrupt supply chains and slow down global economic growth.

In addition, Buffett said long-term investors should not pay attention to daily news headlines, and that his fund (Berkshire Hathaway) would continue to be more inclined to buy stocks.

“If you look at the current situation,” he said, “you’ll get more for your money in stocks than in bonds.”

He said that was true, although the US economy was “a little softer” than six months ago.

The US economy grew 2.3% last year, but experienced a decline in consumer spending and industrial production.

Buffett made a statement two days after his fund announced that operating income fell 3% in 2019 to $ 23.97 billion due to insurance underwriting losses, while growth in Apple and other investments increased net income. to a record $ 81.42 billion.

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