Buffett has lost a lot of street cred. 100B+ cash pile during the longest bull market in history as well as a series of absolutely horrific investments (Kraft, DAL, UAL, AAL, LUV, OXY). The market rallied hard yesterday after Buffett sold stock and had a less than optimistic view. No way would that have happened 20 years ago.
...more worried because USA has most corona infected people. That can throw the US back regarding economical in/exports / production. Many other countries, especially Asian , are going back to work fully
%% Sounds like his warning years ago was the truth; don't expect him to do as well as he had in the past...……………………………………………………………………………………………………..Iam surprised to see him sell all his airlines, but maybe too much change for him/or me
I am surprised that he got into them at first place, since he mentioned about reading the Security Analysis by his teacher B.G, for few times, and it's written in there that air lines are among the most risky ones. It's not that he is running out of skill, it's more about him running out of the options/choices at the current size. Based on his approach, there's plenty of small caps to do that which he used to do for years, yet, at that age, to bring such burden upon yourself and without the expertise in those low caps, - not wise. If the FAANG is dictating the show, we ain't gonna see that 50% - 80% crash , any time soon. The whole world is hungry for good and safe investments (since returns on bonds are non existing), and they jump in, whenever a chance shows up. (like Norway with it's $1T retirement fund...) Interesting times. Yet, as long as one is good at reading those balance sheets, and finding extraordinary irrationalities at pricing, in low caps(or not), - he will be fine Even if not, BITCOIN IS GOING TO 1 MIL !!! (no it's not, people, please don't buy that trash) p.s Which warning, probably missed ?
Give the guy a break, he's almost 90 years old. As for BRK more generally, its board has three members in their late 80s or older. Every dog has its day and BRK's ended years ago. It's comical the way people still pile into the stock, lionize Buffet and hang on his every utterance.
New accounting rules require him to mark his public equities to market. That's why the volatility of his earnings has gone up.
Exactly. The Buffett shine has definitely worn off with institutional investors. Buffett sat on a mountain of cash during the most significant five year rally in Wall Street history.