Article Of The Week
"Be Greedy When Others Are Fearful"
As you know by my name, I love dividends. And in addition to sharing on here, I write regularly in the investment platform- Seeking Alpha.
My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age. I want to help you take control of your life, have F.I.R.E.
And the platform allows writers to share one article once a week free of charge. So, I like to share them with all my current & future subscribers.
Sometimes the market will give investors gifts. Back in June I wrote an article on UnitedHealth (UNH), rating the stock a strong buy. And despite all the controversy UnitedHealth has faced in recent months which has cause the stock price to fall dramatically, this doesn’t change the fundamentals of the business.
Moreover, the stock pays a nice dividend of $2.21 per share. Well, recently, Warren Buffett’s Berkshire Hathaway (BRK.A) (BRK.B) opened a position in the company for about $1.6 billion. To no one’s surprise, the stock has surged as a result.
One of Buffett’s favorite sayings is: Be greedy when others are fearful and fearful when others are greedy.
Like myself, I’m assuming Buffett recognized the opportunity UnitedHealth presented in the low $200’s. Every once in a while, the market gives you gifts. It’s up to you to take advantage.
Now, I expect the stock to continue trending higher as a result of Buffett’s stake in the company. Everyone all of a sudden wants to buy. Remember a stock’s price doesn’t necessarily tell the story of a company. As an investor, it’s up to you be able to disregard the noise and continue buying quality businesses.
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