Warren Buffett said in a CNBC interview Monday he prefers buying stocks at a cheaper price so Monday’s sell-off is something “that’s good for us.”
Buffett’s annual chat with CNBC’s Becky Quick coincided with a large sell-off in U.S. stocks as confirmed coronavirus cases are popping up in large numbers worldwide. But Buffett will be “buying on balance” and he “certainly won’t” be selling any shares.
“I like to buy stocks. I don’t wish ill on anyone else, but if they want to sell them to me cheaper, I prefer it,” Buffett said.
At the time of the Monday morning interview, Dow futures were pointing to an approximate 3% decline and Buffett said he lived through “a lot” of similar losses. He said he can’t recall a single market drop that wasn’t worthy of buying on the dip.
Buffett said the opportunity to buy stocks at a 3% discount compared to last week isn’t “a lot cheaper”
Why It’s Important
Investors are “really strange” when it comes to market sell-offs, especially those who are “savers,” he said. Monday’s decline implies responsible investors have an opportunity to be net buyers of stocks at a lower price.
“We could easily be buying something,” Buffett said.
Monday’s market decline is only bad news for investors who “have to” sell their stocks for whatever reason, he said.
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