Warren Buffett Says This Is How You Stay Financially Healthy In The Pandemic
Warren Buffett Says This Is How You Stay Financially Healthy In The Pandemic
Doug Whiteman Tue, March 2, 2021
Warren Buffett isn't letting the pandemic get in his way.
The 90-year-old investing legend has gotten both his COVID shots, and so has his longtime business partner, Charlie Munger, according to a report by Bloomberg. Though Buffett wasn't able to immunize his company from the coronavirus economy, Berkshire Hathaway Inc. has been making a strong recovery. Profits were down 48% last year at the massive conglomerate, but earnings during the final quarter of 2020 jumped 23% from a year earlier.
So, all in all, the billionaire businessman would seem to be weathering the crisis just fine. You can, too — if you follow his lead. Here are six lessons from Buffett on how to protect your money as the pandemic hangs on.
1. Pounce on low interest rates
With interest rates falling, Buffett says it's a great time to borrow. Buffett became one of the richest people on Earth by taking advantage of opportunities. In the last year he has been pointing out fantastic opportunities for borrowers, thanks to the Federal Reserve's response to the COVID crisis.
The Fed "did the right thing" by cutting a key interest rate almost to zero in response to the virus, Buffett says. The central bank continues to hold rates down, and that's helped keep other borrowing rates low.
"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 last May.
How you can be like Buffett: If you're a homebuyer or homeowner and have a solid credit score, grab one of today's historically low mortgage rates while you can.
Though rates have been rising in recent weeks, you can find new and refinance mortgages at 3% or lower — if you shop around and compare mortgage offers from multiple lenders.
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