Infographic: 10 Financial Lessons from Warren Buffett
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10 Financial Lessons We Can Learn from Warren Buffett

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10 Financial Lessons We Can Learn from Warren Buffett

10 Financial Lessons We Can Learn from Warren Buffett

Over the years, there are few business icons that have offered up as much knowledge as Warren Buffett. From his legendary notes to Berkshire Hathaway shareholders to his famous quotes and idioms, the 84 year old has never been afraid to offer up his investment advice to the masses.

Today’s ageless infographic covers some of the most poignant lessons from the Oracle of Omaha’s career.

Warren Buffett is also well known for putting his money where his mouth is. In today’s uncharted market territory of zero rates, the real question is what Mr. Buffett is doing these days?

As Jim Rickards explains in a recent interview with Keith McCullough, Buffett is positioning himself in a way that readers of Nassim Taleb would understand: a robust portfolio that works in either a deflationary or inflationary environment that gives plenty of optionality. Rickards points to his two most recent acquisitions: Burlington Northern Santa Fe and Suncor. These are both hard assets that can excel in an inflationary environment: transportation, railway, oil, natural gas, mining rights. Meanwhile, Berkshire also has the most cash it has ever had at $55 billion, which provides a hedge for deflation and volatility, and allows him the optionality to pounce on upcoming opportunities.

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Mapped: GDP Growth Forecasts by Country, in 2023

The global economy faces an uncertain future in 2023. This year, GDP growth is projected to be 2.9%—down from 3.2% in 2022.

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GDP Growth

Mapped: GDP Growth Forecasts by Country, in 2023

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Since Russia’s invasion of Ukraine early last year, talk of global recession has dominated the outlook for 2023.

High inflation, spurred by rising energy costs, has tested GDP growth. Tightening monetary policy in the U.S., with interest rates jumping from roughly 0% to over 4% in 2022, has historically preceded a downturn about one to two years later.

For European economies, energy prices are critical. The good news is that prices have fallen recently since March highs, but the continent remains on shaky ground.

The above infographic maps GDP growth forecasts by country for the year ahead, based on projections from the International Monetary Fund (IMF) October 2022 Outlook and January 2023 update.

2023 GDP Growth Outlook

The world economy is projected to see just 2.9% GDP growth in 2023, down from 3.2% projected for 2022.

This is a 0.2% increase since the October 2022 Outlook thanks in part to China’s reopening, higher global demand, and slowing inflation projected across certain countries in the year ahead.

With this in mind, we show GDP growth forecasts for 191 jurisdictions given multiple economic headwinds—and a few emerging bright spots in 2023.

Country / Region2023 Real GDP % Change (Projected)
🇦🇱 Albania2.5%
🇩🇿 Algeria2.6%
🇦🇴 Angola3.4%
🇦🇬 Antigua and Barbuda5.6%
🇦🇷 Argentina*2.0%
🇦🇲 Armenia3.5%
🇦🇼 Aruba2.0%
🇦🇺 Australia*1.6%
🇦🇹 Austria1.0%
🇦🇿 Azerbaijan2.5%
🇧🇭 Bahrain3.0%
🇧🇩 Bangladesh6.0%
🇧🇧 Barbados5.0%
🇧🇾 Belarus0.2%
🇧🇪 Belgium0.4%
🇧🇿 Belize2.0%
🇧🇯 Benin6.2%
🇧🇹 Bhutan4.3%
🇧🇴 Bolivia3.2%
🇧🇦 Bosnia and Herzegovina2.0%
🇧🇼 Botswana4.0%
🇧🇷 Brazil*1.2%
🇧🇳 Brunei Darussalam3.3%
🇧🇬 Bulgaria3.0%
🇧🇫 Burkina Faso4.8%
🇧🇮 Burundi4.1%
🇨🇻 Cabo Verde4.8%
🇨🇲 Cameroon4.6%
🇰🇭 Cambodia6.2%
🇨🇦 Canada*1.5%
🇨🇫 Central African Republic3.0%
🇹🇩 Chad3.4%
🇨🇱 Chile-1.0%
🇨🇳 China*5.3%
🇨🇴 Colombia2.2%
🇰🇲 Comoros3.4%
🇨🇷 Costa Rica2.9%
🇨🇮 Côte d'Ivoire6.5%
🇭🇷 Croatia3.5%
🇨🇾 Cyprus2.5%
🇨🇿 Czech Republic1.5%
🇨🇩 Democratic Republic of the Congo6.7%
🇩🇰 Denmark0.6%
🇩🇯 Djibouti5.0%
🇩🇲 Dominica4.9%
🇩🇴 Dominican Republic4.5%
🇪🇨 Ecuador2.7%
🇪🇬 Egypt*4.0%
🇸🇻 El Salvador1.7%
🇬🇶 Equatorial Guinea-3.1%
🇪🇷 Eritrea2.9%
🇪🇪 Estonia1.8%
🇸🇿 Eswatini1.8%
🇪🇹 Ethiopia5.3%
🇫🇯 Fiji6.9%
🇫🇮 Finland0.5%
🇫🇷 France*0.7%
🇲🇰 North Macedonia3.0%
🇬🇦 Gabon3.7%
Georgia4.0%
Germany*0.1%
Ghana2.8%
Greece1.8%
Grenada3.6%
Guatemala3.2%
Guinea5.1%
Guinea-Bissau4.5%
Guyana25.2%
Haiti0.5%
Honduras3.5%
Hong Kong SAR3.9%
Hungary1.8%
Iceland2.9%
India*6.1%
Indonesia*4.8%
Iraq4.0%
Ireland4.0%
Iran*2.0%
Israel3.0%
Italy*0.6%
Jamaica3.0%
Japan*1.8%
Jordan2.7%
Kazakhstan*4.3%
Kenya5.1%
Kiribati2.4%
South Korea*1.7%
Kosovo3.5%
Kuwait2.6%
Kyrgyz Republic3.2%
Lao P.D.R.3.1%
Latvia1.6%
Lesotho1.6%
Liberia4.2%
Libya17.9%
Lithuania1.1%
Luxembourg1.1%
Macao SAR56.7%
Madagascar5.2%
🇲🇼 Malawi2.5%
🇲🇾 Malaysia*4.4%
🇲🇻 Maldives6.1%
🇲🇱 Mali5.3%
🇲🇹 Malta3.3%
🇲🇭 Marshall Islands3.2%
🇲🇷 Mauritania4.8%
🇲🇺 Mauritius5.4%
🇲🇽 Mexico*1.7%
🇫🇲 Micronesia2.9%
🇲🇩 Moldova2.3%
🇲🇳 Mongolia5.0%
🇲🇪 Montenegro2.5%
🇲🇦 Morocco3.1%
🇲🇿 Mozambique4.9%
🇲🇲 Myanmar3.3%
🇳🇦 Namibia3.2%
🇳🇷 Nauru2.0%
🇳🇵 Nepal5.0%
🇳🇱 Netherlands*0.6%
🇳🇿 New Zealand1.9%
🇳🇮 Nicaragua3.0%
🇳🇪 Niger7.3%
🇳🇬 Nigeria*3.2%
🇳🇴 Norway2.6%
🇴🇲 Oman4.1%
🇵🇰 Pakistan*2.0%
🇵🇼 Palau12.3%
🇵🇦 Panama4.0%
🇵🇬 Papua New Guinea5.1%
🇵🇾 Paraguay4.3%
🇵🇪 Peru2.6%
🇵🇭 Philippines*5.0%
🇵🇱 Poland*0.3%
🇵🇹 Portugal0.7%
🇵🇷 Puerto Rico0.4%
🇶🇦 Qatar2.4%
🇨🇬 Republic of Congo4.6%
🇷🇴 Romania3.1%
🇷🇺 Russia*0.3%
🇷🇼 Rwanda6.7%
🇼🇸 Samoa4.0%
🇸🇲 San Marino0.8%
🇸🇹 São Tomé and Príncipe2.6%
🇸🇦 Saudi Arabia*2.6%
🇸🇳 Senegal8.1%
🇷🇸 Serbia2.7%
🇸🇨 Seychelles5.2%
🇸🇱 Sierra Leone3.3%
🇸🇬 Singapore2.3%
🇸🇰 Slovak Republic1.5%
🇸🇮 Slovenia1.7%
🇸🇧 Solomon Islands2.6%
🇸🇴 Somalia3.1%
🇿🇦 South Africa*1.2%
🇸🇸 South Sudan5.6%
🇪🇸 Spain*1.1%
🇱🇰 Sri Lanka-3.0%
🇰🇳 St. Kitts and Nevis4.8%
🇱🇨 St. Lucia5.8%
🇻🇨 St. Vincent and the Grenadines6.0%
🇸🇩 Sudan2.6%
🇸🇷 Suriname2.3%
🇸🇪 Sweden-0.1%
🇨🇭 Switzerland0.8%
🇹🇼 Taiwan2.8%
🇹🇯 Tajikistan4.0%
🇹🇿 Tanzania5.2%
🇹🇭 Thailand*3.7%
🇧🇸 The Bahamas4.1%
🇬🇲 The Gambia6.0%
🇹🇱 Timor-Leste4.2%
🇹🇬 Togo6.2%
🇹🇴 Tonga2.9%
🇹🇹 Trinidad and Tobago3.5%
🇹🇳 Tunisia1.6%
🇹🇷 Turkey*3.0%
🇹🇲 Turkmenistan2.3%
🇹🇻 Tuvalu3.5%
🇺🇬 Uganda5.9%
🇺🇦 UkraineN/A
🇦🇪 United Arab Emirates4.2%
🇬🇧 United Kingdom*-0.6%
🇺🇲 U.S.*1.4%
🇺🇾 Uruguay3.6%
🇺🇿 Uzbekistan4.7%
🇻🇺 Vanuatu3.1%
🇻🇪 Venezuela6.5%
🇻🇳 Vietnam6.2%
West Bank and Gaza3.5%
🇾🇪 Yemen3.3%
🇿🇲 Zambia4.0%
🇿🇼 Zimbabwe2.8%

*Reflect updated figures from the January 2023 IMF Update.

The U.S. is forecast to see 1.4% GDP growth in 2023, up from 1.0% seen in the last October projection.

Still, signs of economic weakness can be seen in the growing wave of tech layoffs, foreshadowed as a white-collar or ‘Patagonia-vest’ recession. Last year, 88,000 tech jobs were cut and this trend has continued into 2023. Major financial firms have also followed suit. Still, unemployment remains fairly steadfast, at 3.5% as of December 2022. Going forward, concerns remain around inflation and the path of interest rate hikes, though both show signs of slowing.

Across Europe, the average projected GDP growth rate is 0.7% for 2023, a sharp decline from the 2.1% forecast for last year.

Both Germany and Italy are forecast to see slight growth, at 0.1% and 0.6%, respectively. Growth forecasts were revised upwards since the IMF’s October release. However, an ongoing energy crisis exposes the manufacturing sector to vulnerabilities, with potential spillover effects to consumers and businesses, and overall Euro Area growth.

China remains an open question. In 2023, growth is predicted to rise 5.2%, higher than many large economies. While its real estate sector has shown signs of weakness, the recent opening on January 8th, following 1,016 days of zero-Covid policy, could boost demand and economic activity.

A Long Way to Go

The IMF has stated that 2023 will feel like a recession for much of the global economy. But whether it is headed for a recovery or a sharper decline remains unknown.

Today, two factors propping up the global economy are lower-than-expected energy prices and resilient private sector balance sheets. European natural gas prices have sunk to levels seen before the war in Ukraine. During the height of energy shocks, firms showed a notable ability to withstand astronomical energy prices squeezing their finances. They are also sitting on significant cash reserves.

On the other hand, inflation is far from over. To counter this effect, many central banks will have to use measures to rein in prices. This may in turn have a dampening effect on economic growth and financial markets, with unknown consequences.

As economic data continues to be released over the year, there may be a divergence between consumer sentiment and whether things are actually changing in the economy. Where the economy is heading in 2023 will be anyone’s guess.

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