4 powerful words of Warren Buffett!

The billionaire investor Warren Buffett has delivered many words of investment wisdom in recent decades. Often, his most powerful has been the simplest.

For example, in its 2021 letter to Berkshire Hathaway Shareholders, Buffett wrote these four keywords: “Never bet against America. “

Since the oracle rightly appointed from Omaha said that an artificial intelligence revolution (ai) has unleashed a wave of innovation and investment. Nvidia has only added almost $ 3trn to its market capitalization, more than all London bag!

Any investor who has paid attention to Buffett's words four years ago and bought a S&P 500 The tracker would increase more than 60% with dividends. For promoted technology Nasdaq 100 Index, the yield is around 70%.

And although Buffett has been selling shares in recent quarters, he says that most of Berkshire Hathaway's portfolio will remain inverted in the US market.

Domain of the United States

Imagine the next working day, not totally out of the ordinary, for someone in the United Kingdom.

The alarm awakens them in your Apple iPhone, before getting up to make a cup of coffee with the coastal brand (owned by Coca-cola) and a cereal bowl (probably a brand of KELLANOVAcommonly known as Kellogg's).

Waking their flakes, move through social networks – instagram, facebook (both owned by Goal), and x. Then they are going to work (maybe in a Ford, Teslaeither Super Ridexare).

In the office, they check their emails (Google or Microsoft), and probably use software and platforms Workday, Salesforceand Microsoft. Maybe a couple of Zoom Meetings will take place.

After work, they go home and ask for some food (through Uber Eats). Then they relax with Netflix and youtube – owned by Alphabet (Nasdaq: Goog) – Before doing some shopping at amazon.

Before delivering, they reserve a relaxing weekend (through Reservations either Airbnb).

Meanwhile, each card payment/online that has made all day (and every day) is processed by Visa either MasterCard.

<h2 class="wp-block-heading" id="h-a-cheap-tech-stock”>A cheap technological action

Four years ago, Buffett also said: “In its brief 232 years of existence … there has been no incubator to unleash human potential like the United States. ”

When I look forward to future potential trends (space exploration, quantum computing, virtual reality, etc.), it is the companies that quote in the United States those in dust position to dominate.

Take the alphabet. Better known as Google and YouTube's father, also has the firm Robotaxi Waymo. Last year, the company provided more than 4 million taxi trips without driver, with an average of 150,000 trips per week. Waymo is moving to Austin and Texas in 2025, as well as Tokyo, then in Miami in 2026.

Then there is quantum computing, in which Google has been working for more than a decade. That could be a completely transformative technology, which drives the United States stock market even higher.

It is true that the alphabet faces regulatory scrutiny and competitive threats for its search empire. But it is currently quoted only 21 times in advance, I think it is worth considering this American action.

Diversification

Beyond alphabet, there is a risk that many US actions are currently overvalued (which probably explains why Buffet has been selling). So I think that some assignment to other actions, for example, the cheapest in the United Kingdom, is a wise movement.

However, in the long term, I still want exposure to the US market due to its history of innovation and growth. Many of its main companies also have massive international operations.