Why Warren Buffett Secretly Hopes His Stocks Crash

By Anand Chokkavelu, CFA – Updated Apr 7, 2017 at 6:52PM

NYSE: BRK.A

Berkshire Hathaway

Market Cap

$869B

Today's Change

(0.64%) $3,844.00

Current Price

$604,144.00

Price as of April 18, 2024, 4:00 p.m. ET

The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA discusses topics across the investing world.

Really, does Warren Buffett really secretly hope his stocks crash? Yes, everything but the "secretly" part, at least. In his latest shareholder letter, Buffett lays out why he hopes for low share prices on stocks he already owns. Anand explains why both Buffett and Buffett's mentor, Ben Graham, can think this way.

To read about a small company Anand believes Buffett would be interested in if he could still invest in small companies, check out our free report: "The Stocks Only the Smartest Investors Are Buying." We invite you to take a free copy. Just click here.

Anand Chokkavelu, CFA owns shares of Berkshire Hathaway and Wells Fargo. The Motley Fool owns shares of Berkshire Hathaway, International Business Machines, Coca-Cola, and Wells Fargo; and has the following options: short APR 2012 $21.00 puts on Wells Fargo, short APR 2012 $21.00 puts on Wells Fargo, short APR 2012 $29.00 calls on Wells Fargo, and short APR 2012 $29.00 calls on Wells Fargo. Motley Fool newsletter services recommend Berkshire Hathaway and Coca-Cola. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.