Navigating Financial Crises and Investment Decisions

This chapter explores the crucial functions of the Federal Reserve and Treasury during financial crises, using the 2008 economic collapse and the 2020 crisis as references. It also unpacks Berkshire Hathaway's strategic investments, particularly in Allegheny Corp and Occidental Petroleum, highlighting the shift between investment and speculative practices in the market. The chapter culminates in a discussion on the implications of speculative trading, contrasting it with traditional investment strategies and the challenges faced in acquiring stakes in established companies.