Tags: Buffett | financial | crisis | US

Buffett: Financial Crisis Will Come Again 'Someday,' But Not Soon

Friday, 14 Mar 2014 11:00 AM

By Dan Weil

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Legendary investor Warren Buffett, CEO of Berkshire Hathaway, says another financial crisis will strike "someday," but he doesn't think it will be soon, given that a catastrophe just hit in 2008.

"Humans will behave in crazy ways, both on the upside and the downside in the next 50 years," he tells CNBC. "It's very unlikely they do it in the next few years because after something like 2008, once they get out of the emergency room, they're a little more careful for a while."

Buffett notes he would be "surprised a lot" if global stock prices plunge 50 percent in the near future. He adds that Berkshire's share price has sunk 50 percent four different times, but always bounced back.

Editor’s Note:
These 38 Dates Are Key to Bagging $313,038

Calling the 2008 financial crisis an "economic Pearl Harbor" understates matters, but the fact that the United States has rebounded from the debacle shows "this country will come through anything," Buffett argues.

He has been optimistic about the U.S. economy since the fall of 2008, but anticipates continued moderate growth this year.

Berkshire Hathaway has "almost entirely eliminated" its domestic catastrophe insurance, because premiums have declined too far, Buffett explains.

"The rates came down dramatically, and we do not regard the exposure as having come down dramatically."

Meanwhile, Wells Fargo Advisors offers investors lessons from the 2008 financial crisis in an article for Barron's.

"Realize your unique risk tolerance, don't let emotions take the wheel, have appropriate cash balances, understand the role of leverage in a portfolio, and be intentional with your investing strategy," Wells Fargo writes.

Editor’s Note: These 38 Dates Are Key to Bagging $313,038

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