Attractive Quote by Warren Buffett
“It's quite clear that stocks are cheaper than bonds. I can't imagine anybody having bonds in their portfolio when they can own equities, a diversified group of equities. But people do because they, the lack of confidence. But that's what makes for the attractive prices. If they had their confidence back, they wouldn't be selling at these prices. And believe me, it will come back over time.”
About This Quote
Source Interview: Berkshire Hathaway Annual Shareholders Meeting, 2023
Investors favor stocks over bonds when stock prices are low, but lack of confidence keeps some holding bonds, creating attractive equity prices.
In simple terms: Stocks look cheap, bonds hold some investors.
Key Takeaway
Recognize market sentiment and consider equity exposure.
Themes
investment
confidence
market cycles
asset allocation
risk perception
Mood
cautious
analytical
optimistic
Type
financial
strategic
When to use this quote
- stock market downturns
- bond market stability
- rebalancing portfolios
- long‑term investing
Key Concepts
behavioral finance
price dynamics
portfolio diversification
Questions to Reflect On
- How does confidence affect asset choices?
- When should you shift from bonds to stocks?
A Different Perspective
Confidence can shift quickly, making timing risky.
