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Katie Williams, the UBS Wealth Way Discovery Strategist, released a blog post on Thursday titled W.W.W.B.D? (What would Warren Buffett do?).
Williams explained that in the recent UBS House View monthly letter, the firm’s Chief Investment Officer, Mark Haefele, discussed the continued theme of 2022 as the Year of Discovery from the perspective of markets and economies.
The firm is said to have “discovered much about how the economy and markets process information and circumstances we haven’t seen in decade,” while Williams stated that despite having 20 years of experience in financial services, her anxiety still rises when we hit periods of volatility and uncertainty, leading her to ask “what would Warren Buffett do?”
“I have always been interested in Behavioral Economics. It helps me understand why we make irrational choices with our money, and gives us tools to overcome these behavioral biases,” wrote Williams. “Being a purely rational investor may be the gold standard, but it is elusive to the majority of us.”
Williams added that Warren Buffett and his partner, Charlie Munger, have proven the benefit of keeping a level head and said a few tips investors can take away include being aware and recognizing emotions, taking a long-term view, taking a step back and weighing the trade-offs.
