Buffet hoarding billions in 💸 💵
Is this a sign of market correction?
Not a sign of a correction, but lack of good opportunities. I am doing the same.
He's been doing that for 20 years
He runs an insurance company people pay him every month. He might have to pay them back if an earthquake + hurricane hits
Umm. OP is likely referring to BH holding cash. BH and geico are 2 separate companies. No way cash from 1 is used in the other for these purposes. Even if OP wasn't talking about BH personal wealth is different from geico so this doesn't make sense.
@microsoft - you are correct if geico is listed on its own but it is a private company owned by BH so there is no issue. Same thing can’t happen if something happens to coke or American Express
Buffet has had a massive cash pile for more than a decade, it’s not something new
Not necessarily , he hold cash just because bonds are more attractive than stocks at the moment
He is selling because he anticipates increased capital gains tax next year so booking profits at lower tax rates.
He has way too many billions. It’s more like having than hoarding. No ones invests everything they own.
He sold a good chunk of their AAPL holdings. He thinks the market is due for a correction and is freeing up some cash.
Berkshire always spends its cash down during huge downturns, talking about 08, 20. And it usually makes huge profit.
Old goose.... Not relevant anymore
This time may be worst like 2001 ..
That's what people said about him in the late 90s, when he wasn't investing in .coms because he didn't understand their business models. Meanwhile other people were seeing 100x or more returns on the .com investments (on paper). This could have meant a few different things: 1) Buffet was two old fashioned to understand new business models like .coms, but other people did and were getting rich. 2) You don't have to understand a companies business model to invest anymore. Just look at superficial things like websites, and superbowl ads, and you'll get an idea whether you'll get rich. 3) Business fundamentals and market dynamics haven't changed much. Bubbles happen because people overinvest in low value investments, and they pop when the value becomes evident. So, 3 turned out to be true that time. Almost nobody understood the business models, but the people making 100X in a short time thought they did and thought they were geniuses. Then they lost it all and had less than they started with. Except Buffet, because he didn't invest in what he didn't understand.
Just hold and forget about it like usual
Hold cash?
breath