Warren Buffett's 6 Ways To Keep Your Finances Healthy During COVID
Warren Buffett's 6 Ways To Keep Your Finances Healthy During COVID
Doug Whiteman Sat, December 19, 2020
COVID-19 and recession it caused have been hitting everyone — including 90-year-old investing legend Warren Buffett.
At his massive conglomerate, Berkshire Hathaway Inc., the pandemic "has adversely affected nearly all of our operations, although the effects are varying significantly," the company said in its latest quarterly earnings release, in early November. But even with the challenges, Berkshire reported an 82% jump in net profit for the July-through-September quarter — so, billionaire Buffett would seem to be weathering the crisis just fine.
You can, too, if you follow his lead. Here are takeaways from six bits of Buffett wisdom to protect your money as the virus rampages on.
Capitalize on low interest rates
Buffett became one of the wealthiest people on the planet by capitalizing on opportunities. He has pointed to fantastic opportunities for borrowers in 2020, thanks to the Federal Reserve.
The Fed "did the right thing" by cutting a key interest rate almost to zero in response to the virus, Buffett says. Other rates have fallen like dominoes throughout the economy.
"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.
How you can be like Buffett: If you're a homebuyer or homeowner and have a solid credit score, grab one of today's all-time-low mortgage rates while you can. At the moment you can find rates on new and refinance mortgages at 2.50% or lower, if you shop around and compare mortgage offers from multiple lenders.
Keep your guard up
Buffett said a 'megacatastrophe' was coming.
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