Buffet believes the smartest investment style is to focus on active ownership. He doesn’t just buy shares. He buys enough shares to be invited onto the company board. Once there, he can directly influence decisions. And, so for example, by making sure the right C-suite is hired and the right policies are followed, he ensures the company will be successful, which raises the value of his stockholding. And while he does prefer a long-term portfolio, he no longer owns 19 of the first 20 companies he invested in, so his ‘hold’ policy does have caveats.
The S&P 500 slid 0.5 percent between Friday, September 21, and Friday, September 28. It was only the third negative week in the last 13. The index’s 7.2 percent gain since the end of June represented its best quarterly return since the final three months of 2013. Fortunately, readers of Market Insights had a
good sense the rally was coming.
The Fed held FOMC meeting on September 25th and 26th and decided to raise short-term interest rates by 0.25%. After the FOMC meeting, Federal Reserve Board members and Federal Reserve Bank presidents released Summary of Economic Projections, which showed the same FFR projection as last time.
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