Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
 Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Post of the Week!
Search BRK.A
Shrewd'm.com Merry shrewd investors
Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Post of the Week!
Search BRK.A

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
Unthreaded | Threaded | Whole Thread (13) |
Author: DTB ✭  😊 😞
Number: of 12641 
Subject: Re: Jim Grant on Berkshire/Cash/Valuations
Date: 10/29/2024 9:07 PM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 1
And heck, even if many run of the mill good performing companies get caught in a widespread downdraft, and they will, then good investment opportunities are sure to follow for those who can move quickly. And those who own those ultra short-term T-bills are the ones who indeed can move fast. You don't see Berkshire buying any treasury notes (1-10 years) or treasury bonds (more than 10 years), do you?


I don't know how 10-year treasuries traded in previous downturns, say, in 2000 or 2008 or even in 2022, but it would seem to me that, logically, their prices should have held up perfectly well. In fact, with interest rates dropping across all terms, the value of a 10-year bond should have increased during a crisis. Just because you want to be able to take advantage of a swoon in stock prices, that doesn't mean you have to hold that 10-year treasury to term, especially if you are sitting on a big gain. Those long-term bonds are perfectly liquid.

Does anyone have any data on how the longer-termed bonds held up in previous crises?

dtb
Post New | Post Reply | Report Post | Recommend It!
Print the post
Unthreaded | Threaded | Whole Thread (13) |


Announcements
Berkshire Hathaway FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Ticker or Board Name Author

Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Followed Shrewds