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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
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Author: DTB ✭  😊 😞
Number: of 12535 
Subject: Re: Jim Grant on Berkshire/Cash/Valuations
Date: 10/29/2024 9:07 PM
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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
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