I saw them in concert a few years ago. It was an amazing show.
I’m curious if that $800M sold earlier has been reinvested. IIRC, that was prior to the massive sell-off.
If you mean reinvested in Apple, then no... at least not as of the end of March. Most likely those funds were used by either Mr. Combs or Mr. Weschler, both of whom manage a small portion of Berkshire's investment funds on their own, to buy something else.
They seem unusually concentrated in AAPL. Sure, I’ve been in that boat for decades, but I’m not representing thousands of investors with their billions invested in Berkshire.
I am in same boat, way too much AAPL and no regrets, but as you say it seems unusually high risk for what he does.
Buffet is no fool -- he knows he's over concentrated and likely breaking not only standard advice but his own.
I suspect it may have something to do with what he said in his last stock holder meeting. To paraphrase: "There's nothing out there worth buying".
Essentially he was saying that the American stock market, having been supported by the Fed for the last 12 years, has lost touch with the reality that is so dear to Buffet and is now generally grossly over valued. Yes, the virus gave it a quick dip, but the Fed propped right back up again. For a fundamentals based investor like Buffet, that does not make buying into such a mess very appetizing or tempting. As we saw in 2013 with the Taper Tantrum, one word from one guy can send it plunging down.
Being articulate and stating opinions firmly and as if they were fact does not makes them true. Being articulate does not equal knowledge about the topic at hand or support flimsy conclusions. It just means someone talks as if they know what they are talking about when it's doubtful they do.
Where is your money George? I'm interested to know if you act as good of a game as you talk.
My investments are at an all time high.
If you don't know that U.S. markets are, and have been grossly overvalued -- especially from the fundamentalist point of view -- and have been propped up by the Fed you should keep your money in the bank.
They seem unusually concentrated in AAPL. Sure, I’ve been in that boat for decades, but I’m not representing thousands of investors with their billions invested in Berkshire.
I am in same boat, way too much AAPL and no regrets, but as you say it seems unusually high risk for what he does.
Buffet is no fool -- he knows he's over concentrated and likely breaking not only standard advice but his own.
I suspect it may have something to do with what he said in his last stock holder meeting. To paraphrase: "There's nothing out there worth buying".
Essentially he was saying that the American stock market, having been supported by the Fed for the last 12 years, has lost touch with the reality that is so dear to Buffet and is now generally grossly over valued. Yes, the virus gave it a quick dip, but the Fed propped right back up again. For a fundamentals based investor like Buffet, that does not make buying into such a mess very appetizing or tempting. As we saw in 2013 with the Taper Tantrum, one word from one guy can send it plunging down.
I don't think that's what Mr. Buffett has said. He's long said he's interested in making a big acquisition or doing something big with the money Berkshire is sitting on. When asked why he hasn't done so yet he's repeatedly responded with some version of... he hasn't found what he's looking for yet.
As for American equities in general, he seems to still be bullish - especially when looking at them, as he does, for the long term. He still thinks buying American businesses (not just any, of course) is a smart thing to do with your money. And to him that's what equity investment is - buying pieces of businesses he wants to be a partner in.
EDIT: As for the Fed's actions earlier this year... Yes, Mr. Buffett commented on them. He stated more or less the obvious... that the Fed, having learned from the past (particularly from 2008-2009), stepped in quickly and aggressively to prevent a liquidity freeze that may otherwise have caused major problems for many companies and caused even more economic damage than we've seen. When companies - big and small - lose access to short-term borrowing, that can be devastating to an economy.
I think you soft peddle what Buffet said. For an investor to say he can't anything he wants to invest in is a warning sign.
I also think you soft peddle the effect the Fed has had.
Yes, after the 2008 crash it was necessary to keep markets functioning because, due to risky investments having gone bad, it was freezing up.
But, when the hint that they would withdraw their support after markets stabilized sent those same markets into a tizzy, they froze their support for another 5 years. When the federal government finally stepped in with fiscal stimuli in 2018 they again tried -- and failed -- to pull back their monetary stimuli. Today, they have completely given up on responsible management of the economy (main street) and simply prop up Wall Street and the money is sloshing around looking for places to go. It is telling that treasury prices are at an all time high even though they are yielding negative interest rates and guarantee a real loss: they are the only point of perceived safety in these overpriced markets that have detached themselves from reality. But even that perceived safety of the treasuries is delusional as, who would lend money to a borrower who is living far beyond their means (by multiple trillions of $) with no end in site and no possibility of ever returning to even balanced budgets much less paying down that mountain of debt?
They seem unusually concentrated in AAPL. Sure, I’ve been in that boat for decades, but I’m not representing thousands of investors with their billions invested in Berkshire.
I am in same boat, way too much AAPL and no regrets, but as you say it seems unusually high risk for what he does.
Buffet is no fool -- he knows he's over concentrated and likely breaking not only standard advice but his own.
I suspect it may have something to do with what he said in his last stock holder meeting. To paraphrase: "There's nothing out there worth buying".
Essentially he was saying that the American stock market, having been supported by the Fed for the last 12 years, has lost touch with the reality that is so dear to Buffet and is now generally grossly over valued. Yes, the virus gave it a quick dip, but the Fed propped right back up again. For a fundamentals based investor like Buffet, that does not make buying into such a mess very appetizing or tempting. As we saw in 2013 with the Taper Tantrum, one word from one guy can send it plunging down.
Actually what he meant, there is nothing to buy since most companies and sectors are doing well. He usually goes after things which are distress because they are run badly or the economy is causing them to make bad decisions. As an example he bought Century 21 Real Estate when the whole housing market was a mess and homes were not being sold and Century 21 was poorly run and was in trouble, He bought them in a down market knowing full well the housing market would come back and Century 21 under a new name and management would do well. It was good bet. In this current market there is nothing to buy like this since any crappy company can survive when there is more demand and there are resources. You can argue whether the demand is real or propped up by the Feds, This in turn is making companies look more valuable than they may be should be.The fundamentals he looks for is a company not doing well in a business sectors that has future and all the company needs is pointed in the right direction with good management.
They seem unusually concentrated in AAPL. Sure, I’ve been in that boat for decades, but I’m not representing thousands of investors with their billions invested in Berkshire.
I am in same boat, way too much AAPL and no regrets, but as you say it seems unusually high risk for what he does.
Buffet is no fool -- he knows he's over concentrated and likely breaking not only standard advice but his own.
I suspect it may have something to do with what he said in his last stock holder meeting. To paraphrase: "There's nothing out there worth buying".
Essentially he was saying that the American stock market, having been supported by the Fed for the last 12 years, has lost touch with the reality that is so dear to Buffet and is now generally grossly over valued. Yes, the virus gave it a quick dip, but the Fed propped right back up again. For a fundamentals based investor like Buffet, that does not make buying into such a mess very appetizing or tempting. As we saw in 2013 with the Taper Tantrum, one word from one guy can send it plunging down.
Actually what he meant, there is nothing to buy since most companies and sectors are doing well. He usually goes after things which are distress because they are run badly or the economy is causing them to make bad decisions. As an example he bought Century 21 Real Estate when the whole housing market was a mess and homes were not being sold and Century 21 was poorly run and was in trouble, He bought them in a down market knowing full well the housing market would come back and Century 21 under a new name and management would do well. It was good bet. In this current market there is nothing to buy like this since any crappy company can survive when there is more demand and there are resources. You can argue whether the demand is real or propped up by the Feds, This in turn is making companies look more valuable than they may be should be.The fundamentals he looks for is a company not doing well in a business sectors that has future and all the company needs is pointed in the right direction with good management.
Your "Doing Well" really means "Over Priced". That is attested to by, even with a crashed economy the PE of the S&P is nearly 23. And, even at the bottom of the crash it only went down to its long term average of 15 then popped right back up again -- not because things are "doing well" but because of massive fiscal and monetary stimuli.
Why are prices so high when the national debt is soaring and the economy crashing? Over the past 12 years that's been due to the Fed. But, more recently prices were pushed even higher by the Trillion $ Tax scam of borrowed money along with Trillions of $ if fiscal stimuli this year.
“ In fact, Apple's influence on Berkshire Hathaway's portfolio is larger than every other equity combined with the sole exception of its second-largest holding, Band of America.”
That must be a wonderful band. Can I find the band on iTunes?
Comments
If you mean reinvested in Apple, then no... at least not as of the end of March. Most likely those funds were used by either Mr. Combs or Mr. Weschler, both of whom manage a small portion of Berkshire's investment funds on their own, to buy something else.
Actually what he meant, there is nothing to buy since most companies and sectors are doing well. He usually goes after things which are distress because they are run badly or the economy is causing them to make bad decisions. As an example he bought Century 21 Real Estate when the whole housing market was a mess and homes were not being sold and Century 21 was poorly run and was in trouble, He bought them in a down market knowing full well the housing market would come back and Century 21 under a new name and management would do well. It was good bet. In this current market there is nothing to buy like this since any crappy company can survive when there is more demand and there are resources. You can argue whether the demand is real or propped up by the Feds, This in turn is making companies look more valuable than they may be should be.The fundamentals he looks for is a company not doing well in a business sectors that has future and all the company needs is pointed in the right direction with good management.