Warren Buffett stands firm with his investing ideology, ‘Buy when there is fear as he bought three new stocks in Q3 and sold others
Interestingly, the stock is up by 35 per cent from its low as the stock rallied more than 10 per cent on Tuesday itself.
19th century financial legend and banker Nathan Rothschild is said to have once allegedly declared, “Time to buy is when there’s blood in the streets.”
As the story goes, Rothschild used this contrarian style to build wealth.
This evergreen quote by Rothschild has been circulating among investors since the 19th century, inspiring generations of contrarian-minded investors.
One of the most famous and successful investors who followed the approach of Rothschild is Warren Buffett. But several years before Buffett began building his fame and fortune, a man named John Templeton took an unusual form of contrarian investing.
In 1939, a 26-year-old Templeton took advantage of the World War III by borrowing money to buy 100 shares of all stocks trading for less than a dollar on the New York and US stock exchanges. Templeton acquired shares of as many as 104 out of which 34 had gone bankrupt in one way or another. Despite that, four years later his net worth had quadrupled.
Talking about the Oracle of Omaha, he is a firm believer in the ideology buy when others are fearful, as it may present a good value investment opportunity. According to Berkshire’s latest 13F filed, we can see how firm he is when it comes to investing ideology and testament of this is the fact that Buffett-led Berkshire picked up roughly 6 crore shares of Taiwan Semiconductor worth more than USD 4.1 billion.
Taiwan Semiconductor, the world’s largest contract chipmaker had slipped more than 50 per cent from its high which was made in the month of February this year. Interestingly, the stock is up by 35 per cent from its low as the stock rallied more than 10 per cent on Tuesday itself.
Besides Taiwan Semiconductor, Berkshire Hathaway took positions in Louisiana Pacific and Jefferies Financial Group during Q3. On other hand, Berkshire Hathaway exited Store Capital and trimmed its existing holdings in other stocks like U.S. Bancorp, Bank of New York Mellon, General Motors and Kroger.
What do you think, these stocks added by legendary investor Warren Buffett would see good growth in coming years or not? Share your views in comment section.