First time since 1942 Warren Buffett has not had a majority of his net worth in equities

[GON]

Interesting times, in the link below Warren Buffett states he does not have a majority of his net worth in equities, first time since 1942.

The primary reason he states centers on not a big enough opportunity for him to buy. He also discusses principle preservation.

I am a bit cynical in my assessment of his cash-bonds-and Treasury position. I sense he thinks equities are overvalued, and a correction is coming, or maybe even worse.

Take away for me is the old guy is seeing something of significant concern, and is hording cash for a reason.

https://finance.yahoo.com/news/warren-buffett-drops-investing-advice-183217312.html

 

[BMWTurboDzl]

Interesting times, in the link below Warren Buffett states he does not have a majority of his net worth in equities, first time since 1942.

The primary reason he states centers on not a big enough opportunity for him to buy. He also discusses principle preservation.

I am a bit cynical in my assessment of his cash-bonds-and Treasury position. I sense he thinks equities are overvalued, and a correction is coming, or maybe even worse.

Take away for me is the old guy is seeing something of significant concern, and is hording cash for a reason.

https://finance.yahoo.com/news/warren-buffett-drops-investing-advice-183217312.html

When you get really large like BH it's incredibly difficult to find that goldilocks company which will significantly increase earnings. It's like a drug addict who needs an ever larger hit to net the same result.

 

[atikovi]

When you're that rich, you certainly don't NEED any more money so I'd think I would put my net worth in goverment insured and backed products. Bank savings accounts, t-bills, bonds, etc. Who cares if it only earns a few percent interest. He is filthy rich with billions, but mear paupers like us, with only, say, $100M could still live comfortably even at 1% interest rates with that much in the bank making a million bucks a year interest.

 

[Passport1]

Buffett is a smart guy for sure, worth listening to. Plus he's a member of that elite cabal of economists and financial gurus that correctly predicted all ten of the last two recessions.

 

[short]

Interesting times, in the link below Warren Buffett states he does not have a majority of his net worth in equities, first time since 1942.

The primary reason he states centers on not a big enough opportunity for him to buy. He also discusses principle preservation.

I am a bit cynical in my assessment of his cash-bonds-and Treasury position. I sense he thinks equities are overvalued, and a correction is coming, or maybe even worse.

Take away for me is the old guy is seeing something of significant concern, and is hording cash for a reason.

https://finance.yahoo.com/news/warren-buffett-drops-investing-advice-183217312.html

Gon, you usually have great posts, but I think you misread or misunderstood the article and Warrens newsletter.

I read it as; He has a majority of his net worth in equities and has since 1942.

 

[reemoeMO]

Gon, you usually have great posts, but I think you misread or misunderstood the article and Warrens newsletter.

I read it as; He has a majority of his net worth in equities and has since 1942.

I agree. The quote is simply reiterating his faith in equities and remaining invested through thick and thin. Per the article:

This quote underscores a steadfast commitment to stock investments, highlighting the long-term confidence in the growth potential of equities and the importance of staying invested through various market cycles.

It reflects a deep belief in the resilience and growth of the U.S. economy over decades, serving as a testament to the value of long-term equity investment as a cornerstone for wealth accumulation.

 

[sloinker]

What is WB's cash on hand for acquisitions nowadays? 200 billion?
I worked for one of his subsidiary's. He would suck the eyeballs out of his mothers skull if he thought she was hiding a nickel in there.

 

[Nick1994]

Did we read the same article?

“I can't remember a period since March 11, 1942 ... that I have not had a majority of my net worth in equities.”

This quote underscores a steadfast commitment to stock investments, highlighting the long-term confidence in the growth potential of equities and the importance of staying invested through various market cycles.

It reflects a deep belief in the resilience and growth of the U.S. economy over decades, serving as a testament to the value of long-term equity investment as a cornerstone for wealth accumulation.

 

[drtyler]

Did we read the same article?

The last Buffett article that GON posted referenced Buffetts remote wife and also the lady he lived with (and the Christmas cards signed by all three), and GON was talking about Buffetts good old-fashioned value system or something.

 

[PandaBear]

The last Buffett article that GON posted referenced Buffetts remote wife and also the lady he lived with (and the Christmas cards signed by all three), and GON was talking about Buffetts good old-fashioned value system or something.

https://en.wikipedia.org/wiki/Susan_Buffett

Based on my understanding from wikipedia, she left him but found a replacement for Warren. I don't think you can blame Warren for this mess.

 

[wpod]

Buffett is a smart guy for sure, worth listening to. Plus he's a member of that elite cabal of economists and financial gurus that correctly predicted all ten of the last two recessions.

We are a [bankrupt ] nation.

 

[Passport1]

We are a [bankrupt ] nation.

bingo!

 

[Dave Hess]

What is WB's cash on hand for acquisitions nowadays? 200 billion?
I worked for one of his subsidiary's. He would suck the eyeballs out of his mothers skull if he thought she was hiding a nickel in there.

Which company was that ?

WB could care less about what happens to employees with his many business deals.

 

[SC Maintenance]

When Berkshire finds Goldilocks companies they buy the whole thing outright.

I pay attention to what Berkshire buys. Not so much to what they say.

 

[Davejam]

I mean 49% in equities would hardly be a reason for you or I to be 0% in equities, but that's how some might read it.

 

[sloinker]

Which company was that ?

WB could care less about what happens to employees with his many business deals.

Pacificorp/Rocky Mountain Power/Pacific Power and Light/Nevada Power/Mid-American Energy
He also owns Lubrizol and a million other businesses.

 

[Warstud]

Looks like he missed out on one heck of a rally

 

[gfh77665]

All that, and WB is like 150 years old. Time for him to trim back on equities.

 

[GON]

I definitely misinterpreted the article. Thanks for having me take a second look and gain proper understanding.

 

[SeaJay]

Nobody is correct 100% of the time, proceed with caution.