His investment decisions are not economic or market predictions, but just a byproduct of the huge size of his portfolio and how few stocks he can buy. Below is an estimate of his investment universe.
Hi John....Early on in this piece you reference incorrect commentary relative to the AAPL reduction. I had to laugh, as that has been so common for so long in regard to Berkshire/Buffett. I often find myself rolling my eyes in regard to what is said and written.
As an example, I note that some in the TSLA crowd were opining that "he" should be buying that ticker with all this excess cash. That's a topic which resurfaces occasionally with the fervent members of that constituency. It seems they don't understand a carefully worded sentence from Ajit Jain at the 2021 Annual Meeting: "In general I would be very concerned about writing an insurance policy where Elon Musk is on the other side." Either you understand what he's implying, or you don't.
I would also think that the minimal Berkshire buybacks given the current cash hoard would seem to indicate a view on the valuation of the company itself.
Sorry….I wrote that poorly. What I meant to say was that you correctly pointed out how others incorrectly interpreted the AAPL reduction. I was agreeing with you.
Gotcha. Thanks Doug. And yes, I also agree on his view of BRK itself. So much cash piling up, and so few stocks he can buy at the right valuation (including his own). Thanks for reading!
Buffett had said previously that he would always keep $30 billion stashed away for insurance purposes, he may have upped that number with the hardening market/ unfavorable regulation. But even still, $270 billion seems excessive for a cash pile unless he could buy a mega cap like Disney or Nike (assuming they were for sale). Occidental? Chik Fil A perhaps? We could only hope. At age 93, his runway is limited and the pressure will be on to pay out a dividend this decade
Yes, I think large capital returns will come eventually, but likely after his successor takes over. I think part of his reasoning for keeping so much cash is to provide a fortress for whoever takes over. I mentioned my thoughts on the dividend the post: I think he probably still views retained earnings as having a better economic value than they would after tax if paid out
Hi John....Early on in this piece you reference incorrect commentary relative to the AAPL reduction. I had to laugh, as that has been so common for so long in regard to Berkshire/Buffett. I often find myself rolling my eyes in regard to what is said and written.
As an example, I note that some in the TSLA crowd were opining that "he" should be buying that ticker with all this excess cash. That's a topic which resurfaces occasionally with the fervent members of that constituency. It seems they don't understand a carefully worded sentence from Ajit Jain at the 2021 Annual Meeting: "In general I would be very concerned about writing an insurance policy where Elon Musk is on the other side." Either you understand what he's implying, or you don't.
I would also think that the minimal Berkshire buybacks given the current cash hoard would seem to indicate a view on the valuation of the company itself.
What are you suggesting is incorrect?
Sorry….I wrote that poorly. What I meant to say was that you correctly pointed out how others incorrectly interpreted the AAPL reduction. I was agreeing with you.
Gotcha. Thanks Doug. And yes, I also agree on his view of BRK itself. So much cash piling up, and so few stocks he can buy at the right valuation (including his own). Thanks for reading!
BTW…..You had the men’s 1500 final! What a race.
Just incredible!
Buffett had said previously that he would always keep $30 billion stashed away for insurance purposes, he may have upped that number with the hardening market/ unfavorable regulation. But even still, $270 billion seems excessive for a cash pile unless he could buy a mega cap like Disney or Nike (assuming they were for sale). Occidental? Chik Fil A perhaps? We could only hope. At age 93, his runway is limited and the pressure will be on to pay out a dividend this decade
Yes, I think large capital returns will come eventually, but likely after his successor takes over. I think part of his reasoning for keeping so much cash is to provide a fortress for whoever takes over. I mentioned my thoughts on the dividend the post: I think he probably still views retained earnings as having a better economic value than they would after tax if paid out