If you’re looking to throw your money away, look no further than doing what economic forecasters say.
At least that’s what Warren Buffett said in an interview last week with CNBC’s Squawk Box.
He was asked a question about the recent issues with banks and various speculations regarding the economy and potential impact on the country’s GDP.
Here’s what he said chuckling:
I’ve been in business running Berkshire for 58 years and I’ve never found economic forecasts of any use to the company.
…If I depended in my life on economic forecasts. You know. I don’t think we’d make any money.
I don’t know how to do it.
…People want to get them, so they get them, but it has no utility. When I find one of our companies has hired somebody to tell them what’s going to happen in the economy—I mean—they’re throwing their money away as far as I’m concerned.”1
The interviewer responds with her own set of chuckles.
The humor is sad because so many people throw money away this way.
What about you?
Have you figured out how to “depend on economic forecasts” better than Mr. Buffett?
Do you have a record of responding well when you’ve made investment decisions based on these kinds of prognostications?
If so, congratulations! You’ve outdone Mr. Buffett in that skill set.
If not, maybe stop trying?!?
- Tweeted at 5:36am, April 12, 2023 by @SquawkCNBC. Accessed online: https://twitter.com/SquawkCNBC/status/1646130072204591104