Value investing icon Warren Buffett hasn’t been as active during the coronavirus pandemic. It could be that his 90th birthday is around the corner, but more importantly, he’s keeping his emotions in check during a volatile coronavirus pandemic environment–a valuable lesson when value investing.
“Warren Buffett, one of the greatest investors of all time, has been a bit subdued during the coronavirus pandemic. Not because he’s afraid — he’s still optimistic, and told investors at the 2020 annual meeting of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) to never bet against America,'” a Motley Fool article noted. “But he hasn’t been seeing great opportunities, even during the current recession. ‘We have not done anything, because we don’t see anything that attractive to do,’ he said.”
“Still, as he nears his 90th birthday in August, Buffett is as mentally sharp as ever, and he’s given no indication of retiring anytime soon,” the article noted further. “And why should he? Since Berkshire Hathaway started trading publicly in 1965, the stock has rewarded investors with a 20.5% average annual return.”
No Room for Emotions
In the middle of a market sell-off, it can be easy to adopt a herd mentality and follow the sheep–as fictional character Gordon Gecko in “Wall Street” said, sheep get slaughtered.
“According to Buffett, it’s important to stay calm as an investor. ‘Remember that the stock market is a manic depressive,’ he says,” the article added. “You can do this by buying great companies with strong fundamentals and keeping your eye on the long term. Markets will rise and fall for many reasons, but most of the declines will be relatively temporary. It’s important not to be manic depressive along with the markets. You do this by keeping your eye on the future and ignoring short-term market gyrations.”
To get exposure to some value-tilted funds, here are a few large cap ETFs to consider with varying strategies:
- Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC): seeks to provide investment results that closely correspond to the performance of the Goldman Sachs ActiveBeta® U.S. Large Cap Equity Index. The index is designed to deliver exposure to equity securities of large capitalization U.S. issuers.
- Goldman Sachs Equal Weight U.S. Large Cap Equity ETF (GSEW): seeks to provide investment results that closely correspond to the performance of the Solactive US Large Cap Equal Weight Index (GTR). The index consists of equity securities of large capitalization U.S. issuers. The index is an equal-weight version of the Solactive US Large Cap Index, a market capitalization-weighted index that includes equity securities of approximately 500 of the largest U.S. companies.
- Goldman Sachs JUST U.S. Large Cap Equity ETF (JUST): seeks to provide investment results that closely correspond to the performance of the JUST US Large Cap Diversified Index. The index is designed to deliver exposure to equity securities of large capitalization U.S. issuers that engage in “just business behavior” based on rankings produced by the index provider.
For more market trends, visit ETF Trends.