3 Things 3-17-25

 Thing One

A Reminder From Warren Buffett

Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, has long emphasized a simple yet profound principle: bad news is an investor’s best friend. During a 2008 interview with CNBC, amid the chaos of the financial crisis, Buffett explained that downturns and uncertainty often create rare opportunities to buy exceptional businesses at bargain prices. His optimism wasn’t blind; it stemmed from a disciplined belief that fear-driven sell-offs disproportionately punish even the strongest companies, letting patient investors scoop up value.

Buffett’s philosophy hinges on a long-term perspective. He argued that if you’re confident in a company’s fundamentals—its ability to generate profits and grow over decades—then market crashes are merely temporary blips. In 2008, while others panicked over plummeting stocks and a looming recession, Buffett saw a silver lining. He famously wrote in a New York Times op-ed that he was buying American stocks, betting on the resilience of the U.S. economy and its best firms, a stance he’d later reinforce during events like the 2012 European debt crisis.

Historical examples back up his approach. During the 2008-2009 financial meltdown, Buffett invested billions in companies like Goldman Sachs and General Electric, securing favorable terms amid the turmoil. These moves paid off handsomely as markets recovered. Similarly, in his early career, he capitalized on market pessimism to buy undervalued gems, a strategy rooted in his mentor Benjamin Graham’s value investing principles. For Buffett, bad news isn’t a signal to flee—it’s a cue to hunt.

This mindset isn’t just for billionaires. Buffett’s advice applies to everyday investors too: don’t let headlines dictate your decisions. He’s often said that if you’re not comfortable holding a stock for 10 years, you shouldn’t hold it for 10 minutes. Volatility, he insists, is the price of admission for long-term gains. When stocks tank—whether due to a recession, geopolitical strife, or a pandemic—Buffett sees a chance to buy what he calls “wonderful businesses” at a discount, provided their core strengths remain intact.

Today, with economic uncertainty swirling—think inflation and recession fears stoked by tariff saber —Buffett’s words still resonate. His track record proves that embracing bad news can yield big rewards, but it requires discipline, research, and a stomach for short-term pain. As he put it in that 2008 interview, “You don’t have to be a genius” to succeed in investing; you just need to stay calm when others lose their heads. For Buffett, every storm’s a chance to plant seeds for a future harvest.

Thing Two

Three Things The Treasury Secretary Says Matter Than Short Term Volatility

Scott Bessent, the new Treasury Secretary, spoke recently about the perceived “chaos” roiling the markets.  The writers at Seeking Alpha covered his interview.  See an excerpt below:

“…Treasury Secretary Scott Bessent on Sunday said he is “not at all” worried about the recent sell-offs amid President Donald Trump’s multiple tariff threats. 

“I’ve been in the investment business for 35 years, and I can tell you that corrections are healthy. They’re normal. What’s not healthy is straight up,” Bessent told NBC News’ “Meet the Press.

He continued, "You get these euphoric markets. That's how you get a financial crisis.

Trump has wavered on imposing tariffs on the country’s top two trading partners, Mexico and Canada, and threatened steep levies on other allies, such as the European Union. 

The U.S. has levied tariffs on aluminum and steel, which Bessent said will take effect on April 2. 

“I’m not worried about the markets. Over the long term, if we put good tax policy in place, deregulation and energy security, the markets will do great,” he said. 

Meanwhile, Bessent wouldn’t rule out a recession during Trump’s term. 

“You know that there are no guarantees. Like, who would have predicted Covid, right?” he said..."

Thing Three

Just A Thought 

"People are capable, at any time in their lives, of doing what they dream of." - Paulo Coelho