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- Manlobbi
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
No. of Recommendations: 0
"Warren Buffett is raising cash -- and missing out on the booming market."
He guessed wrong on the election? And what does he do now? It seems unlikely he repurchased BRKB when it dipped below $440 recently (before the election).
No. of Recommendations: 0
It seems unlikely he repurchased BRKB when it dipped below $440 recently (before the election).
And even if he did, it couldn't be in meaningful amounts because it only remained at that price for a short time.
No. of Recommendations: 10
I wouldn't worry too much about Warren misjudging the election result. It is highly unlikely he didn't know that Trump had atleast a 50% chance of being elected. I think his selling has a lot to do with valuation of stocks in general & companies like Apple in particular (I know said said corp taxes but I am doubtful that's the whole story), and less to do with election.
No. of Recommendations: 1
Could also be due to concerns over tariffs?
No. of Recommendations: 2
I think tariffs are bi-partisan and seem to be here to stay. Biden doubled down on Trump tariffs.
No. of Recommendations: 20
Regarding tariffs and intended results, I think the horse is already out of the barn and out in the far pasture. When we were buying rotational and injection molding tools in 2000 they were made by American tool & die makers. In 2015 we were buying our custom tools through the same American companies who were having the tools made outside the USA across the Pacific pond. Here in 2024 we have more tools being made and we are dealing with those offshore tool making companies as they now have developed their sales forces to work directly with USA customers like our company.
In the meantime we have lost a generation of tool and die makers here in the USA. It’s not all dire news. What is coming fast are computer controlled tool and die making machines. They have been around for a while and are getting better fast. The offshore companies are also buying these tool making systems and are using them to make our new tools. Additionally, rapid prototyping is similarly coming along rapidly with ability to make large pieces economically and in materials that can handle all sorts of field conditions.
Rather than imposing tariffs, it would be better to subsidize American companies making capital investments in advanced manufacturing systems. This can possibly be done with rapid depreciation, targeted tax credits and other measures to encourage companies to put monetary skin in the game. Yes, this will enrich lots of small, medium and large business owners. It is also likely to create better jobs, more long term economic stability and a brighter future for those of us in between the two big ponds. Hey, you would think it would also be a good prescription to implement for companies/countries/peoples on the east side of the Atlantic pond, too.
Uwharrie
No. of Recommendations: 15
Every day when I don’t get in a car wreck and my house doesn’t burn down, I don’t complain about the terrible bets I made with my auto insurer and my home insurer. Bad LOSING bets I keep making year after year. And unlike Warren I don’t get paid 4-5% for my bad bets.
When limited nuclear attacks don’t occur, when the bond market doesn’t blow up, when capital gains taxes don’t rise—Warren doesn’t complain. That’s not necessarily a bad thing—despite some very large bets he’s placed. You see, there’s this little $600-$700 Billion quietly positioned on the other side which mysteriously seems to be ignored by pundits.
Warren and I both hope to continue making losing bets for many years to come. Lose, baby, lose!
No. of Recommendations: 35
>He guessed wrong on the election? And what does he do now? It seems unlikely he repurchased BRKB when it dipped below $440 recently (before the election)<<
Please. Enough! Buffett doesn't "guess elections". He never has in his entire career. Sure, he suspects tax rates could rise in coming years due to revenue shortfalls and historic debt levels.
So what IS Buffett doing? The same thing he's done the past 50 years--determine risk/reward.
Does anyone notice the present CASH yield is higher than the S & P EARNINGS yield, and more than triple the stock DIVIDEND yield? Is it crazy to have 1/3 of your company getting a risk-free yield TRIPLE the stock earnings yield? With total optionality? While banking 3 times more income than stocks pay out?
The stock market is very high by ANY measure, rising rates make the Hurdle rate ever HIGHER.
Buffett is a value investor. This is simple stuff.
No. of Recommendations: 1
100% agree.
