The coronavirus pandemic and resulting recession have been hitting everyone — including billionaire businessman Warren Buffett.
Most of the companies making up his massive conglomerate, Berkshire Hathaway Inc., felt “relatively minor to severe” effects from the COVID-19 outbreak during the spring and early summer, Berkshire’s most recent earnings report reveals.
One of Buffett’s businesses, aircraft parts maker Precision Castparts, cut 10,000 jobs and dropped in value by $9.8 billion, because people are flying less, the report indicates.
keep debt under control as the virus rages.” data-reactid=”35″>Even so, Berkshire reported an 87% jump in quarterly profits — so Buffett would seem to be weathering the crisis just fine. See what the folksy financial guru has said in public comments about how to protect your money and keep debt under control as the virus rages.
Take advantage of low interest rates
Buffett became one of the wealthiest people on the planet by capitalizing on opportunities. He sees some fantastic opportunities these days, courtesy of the Federal Reserve.
“This is a very good time to borrow money, which means it may not be such a great time to lend money, but it’s good for the country that it’s a good time to borrow money,” he said during Berkshire Hathaway’s online shareholders meeting earlier this year.
To help the economy recover from the coronavirus, the Fed “did the right thing” by cutting a key interest rate almost to zero, Buffett says.
shop around and compare mortgage offers from several lenders.” data-reactid=”64″>For homebuyers and homeowners, it’s an excellent time to borrow. Thanks in part to the Fed, rates on new and refinance mortgages have been lower than ever — and it’s still possible to find 30-year loans with rates under 3%, if you shop around and compare mortgage offers from several lenders.
Always be ready for the worst
They don’t call him an oracle for nothing. The multibillionaire said during an interview in March: “I’ve always felt a pandemic would happen sometime.”
In 2019, he warned that the world was due for a “megacatastrophe.” It would be some kind of “total surprise” that would dwarf devastating hurricanes Katrina and Michael, Buffett told his Berkshire shareholders in a letter.