This is the title of an article and it went on: "It's not been a good week for billionaire investor Warren Buffett. His bet on Coca-Cola (KO) and American tech giant IBM have cost him more than $2 billion in just three days." I couldn't help but laughed! Apparently this guy didn't really understand who is Buffett and what is his investment style.
Do you think Buffett would be really sad for a minute about this "huge paper loss"? Not a chance! On the contrary, Buffett would be very happy for 2 reasons: I won't be surprised to see his increase of his holdings for IBM and/or KO in his next investment disclosure as it is typical Buffett that he loves lower stock prices and will buy more when others run away. Also he will be happy to see more shares that his dividends from IBM and KO could buy, which in the long run will substantially increase more of his wealth than if the stock prices simply go up. Don't believe? See an example here.
I'm anxiously waiting for another leg down of the overall stock market, which could further bring down the prices of IBM or KO. I will be the buyer at that time. Maybe the opportunity is just a few days away.
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