Warren Buffett is Holding a Record Amount of Cash

Daily Trade Alert via Wealth Retirement ^ | 05/22/2024 | Marc Lichtenfeld

[xoxox]

a robber baron by any other name.

[higgmeister]

Warren Buffett is Holding a Record Amount of Cash

Worth less and less every day.

[PGR88]

Even if government confiscated all of it - It would only cover 3 weeks of Federal deficits.

[x]

He must have one heck of a humungus mattress.

[SeekAndFind]

The more interesting question for me as an investor is this — WHY is Buffet, one of the world’s greatest investors, holding so much cash instead of investing them in the stock market?

And why now? What is he anticipating?

[Attention Surplus Disorder]

I’m not sure this is a good indicator of anything in particular. Buffett unloaded a tremendous amount of Apple stock, which I believe (but am not sure) was his biggest holding.

The market is pretty danged high right now. I don’t fault him for his caution taking on new (to him) issues.

[Roman_War_Criminal]

The surprise is hiding right around the corner.

I’m a shark looking for a good buy when the crash does happen (and it will).

Problem for all of us is if our dollar becomes worthless, what will be that next currency?

Some type of CBDC I imagine - kiss your freedom goodbye when it happens.

[Leaning Right]

> Buying during a downturn is scary as heck. <

True that. And there is an old saying: It’s easy to know when to get out of the stock market. It’s tough to know when to get back in.

As for me, I just follow the rule: Stocks percentage = 100 - my age.
Overly simplistic, I know.

[FtrPilot]

My guess is Buffet believes inflation is still too high and that the Fed will raise interest rates. This should cause stocks and bonds to go down.

Personally, I keep 4 years of RMDs in cash and the rest in stocks. I avoid bonds like the plague.

[Dr. Sivana]

a robber baron by any other name.

He is a Planned Parenthood fanatic, so he is evil. That said, buying stakes in companies (e.g. Dairy Queen, Coca-Cola, Apple) is less evil than George Soros making money by buying currencies. Buffet is productive, Soros is a parasite.

I hate when guys like Warren Buffett, who have that pragmatic, mild, midwestern temperament, go to the dark side for population control.

[xoxox]

A monopolist by any other name.

[Raycpa]

FWIW, the graph actually shows a decrease in buying power and is therefore misleading unless it can be viewed in reference to another bench mark.

https://www.macrotrends.net/2324/sp-500-historical-chart-data

According to the above link the average closing price of the S&P five years ago in 2019 was $2,913, while the average this year is $5,053 or an increase of over 70%.

Buffet’s cash stash only increased about 40%.

Buffet can buy less shares in 2024 than he could have in 2019.

[Mouton]

Buffett is simply a value investor. He follows cash flow also. He is also approaching his use by date.

[MeneMeneTekelUpharsin]

THIS is significant news, but few will pay attention.

[Dr. Sivana]

A monopolist by any other name.

Berkshire-Hathaway's largest holdings:

Apple (AAPL) is Berkshire's largest holding, worth around $135 billion, comprising over 40% of the portfolio.

Bank of America (BAC) is the second-largest holding at $39 billion, about 12% of the portfolio.

American Express (AXP) is the third-largest at $34.5 billion, around 10% of the portfolio.

Other major holdings include Coca-Cola (KO) at $24.5 billion, Chevron (CVX) at $19.4 billion, and Occidental Petroleum (OXY) at $16.1 billion.

None of these companies are monopolies (though oil refining might be an oligopoly), and Buffett doesn't have a controlling stake in any of them. His $39 billion in Bank of America is small potatoes to a company of that size, enough for a seat at the table, but nothing more. Buffett looks to be mainly interested in making money, not controlling markets. Unfortunately, instead of spending his wealth on personal luxury or enriching his offspring, he will bequeath it all to evil organizations.

A bad guy, overall, but neither a monopolist nor a Robber Baron.

[xoxox]

Is that right out of his annual report? Through surrogates Buffet basically cornered the local newspaper industry in the 90's and I think I read he was planning to do so in radio as well though I don't pay attention any longer. In fact that only reason I know that much is that did some work for a newspaper heiress who told me the story.

You may conclude that it's just a story or, that even if it's true, it's not meaningful. I conclude that it is very meaningful, a modus operandi. I suspect he dominates and or colludes in insurance as well. Nope, can't prove it -- you see, by the time a trader can prove a hunch, the trade is gone. I've learned to trust my instincts.

[Dick Vomer]

He’s not holding cash but 6 month to 12 month T-bills.

What does he care, he’s also one of the biggest owners of Black Rock.

[woodbutcher1963]

Buffet basically said that he didn’t think there was anything currently worth buying. That everything was overvalued. Which is why they are keeping so much in short term Treasury Bills.

He also inferred that the stock market was overvalued and they were waiting for a correction to buy anything.

I feel exactly the same way. I sold everything except two mutual funds about two months ago. I am currently 95% invested in Money Markets and short term TBills.

[Nervous Tick]

>> WHY is Buffet, one of the world’s greatest investors, holding so much cash instead of investing them in the stock market?

Article hinted that stocks are overpriced.