Buffett is richer post-election thanks to market rally

While president-elect Donald Trump has elicited much wringing of hands in certain circles, the third-richest man in America expresses nothing but level-headedness — perhaps an unsurprising characteristic for the one dubbed the Oracle of Omaha.

Although he backed Hillary Clinton, Warren Buffett tells CNN he supports the American president regardless of who holds the position. Further, he’s optimistic about modest U.S. growth, which he expects to be 2% — not Trump’s promised 4%. He adds that stocks will be higher 10 to 30 years from now.

Buffett needn’t wait that long, however. Berkshire Hathaway stock popped since the post-election stock rally, rising from $142.96 on Nov. 4 to $156.92 on Nov. 11 (B class). Buffett tells CNN he bought stock before the election when he expected a Clinton win, and kept buying after she lost.

Read: Trump rally in stocks still has legs

He isn’t fazed by Trump’s rhetoric on trade and immigration, although he disagrees with Trump’s proposal to impose a 35% tariff on imported goods.

Potential trade restrictions were one of the post-election themes expressed by market analysts. For instance, in an ETF strategy note published the day after the election, National Bank suggests investors look for opportunities in large-cap U.S. equity ETFs that offer exposure to large caps with the most international trade. And Mexican equity exposure offers opportunities, because of potential barriers between that country and the U.S.

Read: Where to invest in post-election U.S.

A trade restriction of another kind may be on some people’s minds: a restriction on Trump’s trading on his business acumen as president. If you’re worried Trump’s less than impressive record in business will adversely affect his administration, take a page from the Oracle’s playbook and exhale.

Although Buffett himself argues Trump’s track record in business operations is poor, he told CNN that running a business is no longer Trump’s job description.

Also read: December Fed hike still a “strong” possibility

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.