Where's Warren Buffett During This Crisis?

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JoMoney
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Re: Where's Warren Buffett During This Crisis?

Post by JoMoney »

Famed criminal defense attorney Mark Geragos, in his "Reasonable Doubt" podcast recently hypothesized that Warren Buffett hasn't been in the media discussing buying up stocks in this downturn, because doing so might impact his use of the float from his insurance companies, which might have significant liabilities in this crisis, and anything he says might be used against them
@ 48:40
https://www.podbean.com/media/share/dir ... ce=w_share

Not sure I buy it... but... who knows :confused
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Re: Where's Warren Buffett During This Crisis?

Post by Cycle »

Probably getting a young blood transfusion right now
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Leesbro63
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Re: Where's Warren Buffett During This Crisis?

Post by Leesbro63 »

JoMoney wrote: Sun Mar 29, 2020 8:13 pm Famed criminal defense attorney Mark Geragos, in his "Reasonable Doubt" podcast recently hypothesized that Warren Buffett hasn't been in the media discussing buying up stocks in this downturn, because doing so might impact his use of the float from his insurance companies, which might have significant liabilities in this crisis, and anything he says might be used against them
@ 48:40
https://www.podbean.com/media/share/dir ... ce=w_share

Not sure I buy it... but... who knows :confused
Best theory I’ve heard so far. And it acknowledges WB’s noticeable absence.
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Re: Where's Warren Buffett During This Crisis?

Post by investingdad »

I skimmed the annual report and newsletter for BRK this weekend and all I could think was, "Wow, this sure is out of date for only being written a few weeks ago."
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Leesbro63
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Re: Where's Warren Buffett During This Crisis?

Post by Leesbro63 »

Still crickets
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JoMoney
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Re: Where's Warren Buffett During This Crisis?

Post by JoMoney »

Not him speaking, but he was just mentioned on CNBC for using NetJets to fly a bunch of N95 masks from China to a NY hospital
https://nypost.com/2020/04/01/warren-bu ... get-masks/
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Leesbro63
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Re: Where's Warren Buffett During This Crisis?

Post by Leesbro63 »

JoMoney wrote: Wed Apr 01, 2020 3:47 pm Not him speaking, but he was just mentioned on CNBC for using NetJets to fly a bunch of N95 masks from China to a NY hospital
https://nypost.com/2020/04/01/warren-bu ... get-masks/
Excellent
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Re: Where's Warren Buffett During This Crisis?

Post by iamblessed »

He still waiting for it to bottom.
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Re: Where's Warren Buffett During This Crisis?

Post by AlphaLess »

Leesbro63 wrote: Wed Mar 18, 2020 3:58 pm In prior crisis periods, he's been right out front with thoughts, advice and making deals. This time he's notoriously quiet. Maybe he's in seclusion (he IS 89!) and can't figure out how to do the video on his newfangled iPhone.

All kidding aside, it does seem odd that we're not hearing from WB.
He probably thinks it's too early to deploy cash.

When you hear him getting some splashy deal with a fancy preferred bond paying 8% a year, and convertibility into equity, then we know he is doing something.
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Re: Where's Warren Buffett During This Crisis?

Post by whodidntante »

AlphaLess wrote: Wed Apr 01, 2020 9:17 pm
Leesbro63 wrote: Wed Mar 18, 2020 3:58 pm In prior crisis periods, he's been right out front with thoughts, advice and making deals. This time he's notoriously quiet. Maybe he's in seclusion (he IS 89!) and can't figure out how to do the video on his newfangled iPhone.

All kidding aside, it does seem odd that we're not hearing from WB.
He probably thinks it's too early to deploy cash.

When you hear him getting some splashy deal with a fancy preferred bond paying 8% a year, and convertibility into equity, then we know he is doing something.
It's possible he isn't very excited yet, agreed. I wonder if he's buying airlines though since he decided he likes to buy those stocks recently.
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Re: Where's Warren Buffett During This Crisis?

Post by JoMoney »

According to this MarketWatch article ( Opinion: ‘Quiet’ Warren Buffett has three ways to win in this market )
" ... The company press office says Buffett is not planning to speak in public before May ... "

which would likely be at the annual BRK meeting ( May 2nd )
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Re: Where's Warren Buffett During This Crisis?

Post by Leesbro63 »

JoMoney wrote: Fri Apr 03, 2020 9:45 am According to this MarketWatch article ( Opinion: ‘Quiet’ Warren Buffett has three ways to win in this market )
" ... The company press office says Buffett is not planning to speak in public before May ... "

which would likely be at the annual BRK meeting ( May 2nd )
Interesting. Good find. I'm sure this will be a whole new additional chapter to the eventual book about WB's adventures.
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Re: Where's Warren Buffett During This Crisis?

Post by anoop »

Latest news says he sold a bunch of DAL and LUV.
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Re: Where's Warren Buffett During This Crisis?

Post by dmcmahon »

anoop wrote: Fri Apr 03, 2020 6:23 pm Latest news says he sold a bunch of DAL and LUV.
Selling airlines. Gee, ya think?
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Re: Where's Warren Buffett During This Crisis?

Post by physixfan »

anoop wrote: Fri Apr 03, 2020 6:23 pm Latest news says he sold a bunch of DAL and LUV.
This is very interesting... I just bought several shares of DAL and LUV today lol. I’m wondering why he wants to sell them...
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Re: Where's Warren Buffett During This Crisis?

Post by fwellimort »

physixfan wrote: Fri Apr 03, 2020 8:51 pm
anoop wrote: Fri Apr 03, 2020 6:23 pm Latest news says he sold a bunch of DAL and LUV.
This is very interesting... I just bought several shares of DAL and LUV today lol. I’m wondering why he wants to sell them...
He sold just enough to be under 10%. Probably due to SEC filings.
He doesn't want to report if he has to (there's more headaches once berkshire own more than 10% holdings of the stock)
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Re: Where's Warren Buffett During This Crisis?

Post by Njwolf »

As of yesterday, he reduced his stakes in airlines. No public announcements, just sec filings.
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Re: Where's Warren Buffett During This Crisis?

Post by bgf »

fwellimort wrote: Fri Apr 03, 2020 9:12 pm
physixfan wrote: Fri Apr 03, 2020 8:51 pm
anoop wrote: Fri Apr 03, 2020 6:23 pm Latest news says he sold a bunch of DAL and LUV.
This is very interesting... I just bought several shares of DAL and LUV today lol. I’m wondering why he wants to sell them...
He sold just enough to be under 10%. Probably due to SEC filings.
He doesn't want to report if he has to (there's more headaches once berkshire own more than 10% holdings of the stock)
yes, this is one of the many reasons you shouldn't blindly follow buffett's moves as an individual investor. he runs a business and sees himself as partner with his shareholders. he is trying to make the right move but the reasons for those moves aren't always immediately apparent or applicable to individual investors.
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Re: Where's Warren Buffett During This Crisis?

Post by CT-Scott »

The obsession here with Warren Buffett continues to amaze me.

The man is 89 years old. His father (a very noble and impressive guy, Howard Buffett) only lived until 60.

Warren has more cash on hand than he could ever possibly need, for however many years of life he could possibly have left. That makes all of his investments play/gambling money. Looking to follow his lead only makes sense if you are in a similar financial position as him.
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Re: Where's Warren Buffett During This Crisis?

Post by Leesbro63 »

It's not about obsessing in order to mimic WB. For many of us it's just about a wise, proven, prudent investor who has seen it all and wondering his thoughts, as he usually offers, on the current crisis.
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Re: Where's Warren Buffett During This Crisis?

Post by JoMoney »

"Don't listen to the advice of the guy extremely successful in that domain. Listen to my advice to ignore him!", says Random Internet Person
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Re: Where's Warren Buffett During This Crisis?

Post by Waba »

Leesbro63 wrote: Sat Mar 21, 2020 8:12 pm
Stormbringer wrote: Sat Mar 21, 2020 7:47 pm United Airlines (UAL) currently has a P/E of 2. The market cap is $6 billion. I'm betting that Buffett quietly ups his stake in the airlines, or buys one outright.
What earnings? 😱
He should buy it after they file for bankruptcy and have wiped out common stock.

Flight capacity reduced by 78%
https://hub.united.com/united-flight-re ... 14815.html
We are closely monitoring demand as well as changes in state and local curfews and government restrictions across the U.S. and will adjust our schedule accordingly throughout the month.

These the changes result in a 67% overall domestic reduction from a previous 52%, and our overall capacity will now be down 78% overall.
Hotel occupancy nose diving
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Re: Where's Warren Buffett During This Crisis?

Post by Waba »

I sold my berkshire stock because I believe that Warren Buffet's life expectancy is severly shortened by the current pandemic and I expect that his untimely demise -IF it were come to pass- would have a big negative impact on berkshire stock price. At that point you might be looking at an attractive entry point.
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Re: Where's Warren Buffett During This Crisis?

Post by theorist »

Waba wrote: Sat Apr 04, 2020 10:25 am I sold my berkshire stock because I believe that Warren Buffet's life expectancy is severly shortened by the current pandemic and I expect that his untimely demise -IF it were come to pass- would have a big negative impact on berkshire stock price. At that point you might be looking at an attractive entry point.
He is 89; Charlie is 96. There may be a brief move in prices if something happens to one or both of them (which I hope is no time soon, but the odds are against me). But you’d have to think a forward-looking market will have priced in a change of command at Berkshire in the near future.
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Re: Where's Warren Buffett During This Crisis?

Post by Barefoot »

fwellimort wrote: Fri Apr 03, 2020 9:12 pm
He sold just enough to be under 10%. Probably due to SEC filings.
He doesn't want to report if he has to (there's more headaches once berkshire own more than 10% holdings of the stock)
If he was worried about being over 10%, why did he buy DAL just several weeks ago?
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Re: Where's Warren Buffett During This Crisis?

Post by fwellimort »

Barefoot wrote: Sat Apr 04, 2020 7:59 pm
fwellimort wrote: Fri Apr 03, 2020 9:12 pm
He sold just enough to be under 10%. Probably due to SEC filings.
He doesn't want to report if he has to (there's more headaches once berkshire own more than 10% holdings of the stock)
If he was worried about being over 10%, why did he buy DAL just several weeks ago?
how would he have known these companies would do buy backs at the last second. ?
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Re: Where's Warren Buffett During This Crisis?

Post by InvestInPasta »

WolfgangPauli wrote: Fri Mar 27, 2020 9:52 pm Wow, only down 2.5%.. .You either are not invested much in stocks or you are doing something magical other than indexing? Fill us in :)
The first one. I have only 3% in stocks (ETF), and 17% in a mix of ig+hy aggregate bonds (no ETF)
Stocks were down 30%,, it's a -1% of my portfolio
Bonds were down 7%, it's a -1.2% of my portolio
Total loss was -2.2%

Now with the small recover of the last few weeks I'm down -1.8%

I could tell you I'm super smart and use a secret strategy that I've developed after years of research, but the truth is: it was just sheer luck! :mrgreen:
In January 2020 I had almost convinced myself to increase the equity weight of my portfolio to 20%, but I was too afraid to lose money, and I thought it would have been better to read and study more before taking such a strong financial decision on my savings, then in less than a few months...boom! :shock:
When I study English I am lazier than my portfolio. Feel free to fix my english and investing mistakes.
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Re: Where's Warren Buffett During This Crisis?

Post by abuss368 »

He’s waiting!
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Re: Where's Warren Buffett During This Crisis?

Post by mindboggling »

Why does anyone care what WB thinks? Do you have a plan? Do you believe in your plan?
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Re: Where's Warren Buffett During This Crisis?

Post by AlphaLess »

Buffet is dumping stock.
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Re: Where's Warren Buffett During This Crisis?

Post by guyinlaw »

AlphaLess wrote: Sun Apr 05, 2020 8:50 pm Buffet is dumping stock.
He is dumping airline stock, which will.need to be nationalized or go bankrupt. World travel and air travel will be very low for > 2 years until majority of world is vaccinated.
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Re: Where's Warren Buffett During This Crisis?

Post by AlphaLess »

guyinlaw wrote: Sun Apr 05, 2020 8:54 pm
AlphaLess wrote: Sun Apr 05, 2020 8:50 pm Buffet is dumping stock.
He is dumping airline stock, which will.need to be nationalized or go bankrupt. World travel and air travel will be very low for > 2 years until majority of world is vaccinated.
In other words, you are confirming that I am correct that he is dumping stock.

Thank you for the confirmation.
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Re: Where's Warren Buffett During This Crisis?

Post by guyinlaw »

AlphaLess wrote: Sun Apr 05, 2020 10:57 pm
guyinlaw wrote: Sun Apr 05, 2020 8:54 pm
AlphaLess wrote: Sun Apr 05, 2020 8:50 pm Buffet is dumping stock.
He is dumping airline stock, which will.need to be nationalized or go bankrupt. World travel and air travel will be very low for > 2 years until majority of world is vaccinated.
In other words, you are confirming that I am correct that he is dumping stock.

Thank you for the confirmation.
He is likely buying other stock of companies..
Time is your friend; impulse is your enemy. - John C. Bogle
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Re: Where's Warren Buffett During This Crisis?

Post by fatlever »

guyinlaw wrote: Sun Apr 05, 2020 8:54 pm He is dumping airline stock, which will.need to be nationalized or go bankrupt. World travel and air travel will be very low for > 2 years until majority of world is vaccinated.
He bought the dip snapping up Delta on March 3 for $46

https://markets.businessinsider.com/new ... 1028959672
Warren Buffett famously advises investors to "be fearful when others are greedy, and be greedy when others are fearful." The billionaire investor's Berkshire Hathaway conglomerate showcased that approach last week: It boosted its stake in Delta Air Lines during the massive market selloff fueled by coronavirus fears. Berkshire deployed about $45 million to buy nearly 980,000 shares in the airline last Thursday, according to a Securities and Exchange Commission filing. The purchases raised its total holding to about 71.9 million shares, giving it an 11.2% stake in the company. Buffett and his team probably jumped at the chance to buy Delta shares at a discount. They paid an average of $46.40 per share — about 20% below Delta's stock price a week earlier. "Who wouldn't rather buy at a lower price than a higher price?" Buffett asked in a CNBC interview last week. Investors "should want the stock market to go down — they should want to buy at a lower price," he added.

...and sold the tank on April 3 dumping a lot at $22

https://www.cnbc.com/2020/04/03/warren- ... takes.html
Warren Buffett’s Berkshire Hathaway said on Friday it sold about 18% of its stake in Delta Air Lines and 4% of its holdings in Southwest Airlines this week, as the coronavirus pandemic drives the airline industry into perhaps its biggest crisis ever.
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Re: Where's Warren Buffett During This Crisis?

Post by drzzzzz »

In the past he has provided credit to the markets and companies and in return got good deals through warrants or dividends. The fed is doing more of the work this time supporting the credit and stock markets, but I would imagine in companies who are unable to get credit that he wants, he will still make deals on the side that we will read about after they happen.
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Re: Where's Warren Buffett During This Crisis?

Post by Leesbro63 »

fatlever wrote: Mon Apr 06, 2020 7:33 am
guyinlaw wrote: Sun Apr 05, 2020 8:54 pm He is dumping airline stock, which will.need to be nationalized or go bankrupt. World travel and air travel will be very low for > 2 years until majority of world is vaccinated.
He bought the dip snapping up Delta on March 3 for $46

https://markets.businessinsider.com/new ... 1028959672
Warren Buffett famously advises investors to "be fearful when others are greedy, and be greedy when others are fearful." The billionaire investor's Berkshire Hathaway conglomerate showcased that approach last week: It boosted its stake in Delta Air Lines during the massive market selloff fueled by coronavirus fears. Berkshire deployed about $45 million to buy nearly 980,000 shares in the airline last Thursday, according to a Securities and Exchange Commission filing. The purchases raised its total holding to about 71.9 million shares, giving it an 11.2% stake in the company. Buffett and his team probably jumped at the chance to buy Delta shares at a discount. They paid an average of $46.40 per share — about 20% below Delta's stock price a week earlier. "Who wouldn't rather buy at a lower price than a higher price?" Buffett asked in a CNBC interview last week. Investors "should want the stock market to go down — they should want to buy at a lower price," he added.

...and sold the tank on April 3 dumping a lot at $22

https://www.cnbc.com/2020/04/03/warren- ... takes.html
Warren Buffett’s Berkshire Hathaway said on Friday it sold about 18% of its stake in Delta Air Lines and 4% of its holdings in Southwest Airlines this week, as the coronavirus pandemic drives the airline industry into perhaps its biggest crisis ever.
So if he only sold a small portion (18% and 4%) of his Delta and Southwest holdings, is he still stuck holding the bag?
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Re: Where's Warren Buffett During This Crisis?

Post by Peculiar_Investor »

If you have a WSJ subscription, check out Charlie Munger: ‘The Phone Is Not Ringing Off the Hook’ - WSJ.

To address the OPs question, I'll leave it to Charlie Munger to explain.
Jason Zweig wrote:Overall, Mr. Munger made it clear that he regards this as a time for caution rather than action.

<snip>

Surely hordes of corporate executives must be calling Berkshire begging for capital?

“No, they aren’t,” said Mr. Munger. “The typical reaction is that people are frozen. Take the airlines. They don’t know what the hell’s doing. They’re all negotiating with the government, but they’re not calling Warren. They’re frozen. They’ve never seen anything like it. Their playbook does not have this as a possibility.”
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Re: Where's Warren Buffett During This Crisis?

Post by theorist »

Peculiar_Investor wrote: Fri Apr 17, 2020 11:12 am If you have a WSJ subscription, check out Charlie Munger: ‘The Phone Is Not Ringing Off the Hook’ - WSJ.

To address the OPs question, I'll leave it to Charlie Munger to explain.
Jason Zweig wrote:Overall, Mr. Munger made it clear that he regards this as a time for caution rather than action.

<snip>

Surely hordes of corporate executives must be calling Berkshire begging for capital?

“No, they aren’t,” said Mr. Munger. “The typical reaction is that people are frozen. Take the airlines. They don’t know what the hell’s doing. They’re all negotiating with the government, but they’re not calling Warren. They’re frozen. They’ve never seen anything like it. Their playbook does not have this as a possibility.”

This does raise the question — if the market is too overvalued in normal times now, and if in the downturn everything is frozen and they’re being defensive — when will they put their cash horde to good use? Hopefully it doesn’t sit there into the next market cycle! (I say this as a big Berkshire fan and very minor shareholder.)
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Re: Where's Warren Buffett During This Crisis?

Post by Leesbro63 »

Peculiar_Investor wrote: Fri Apr 17, 2020 11:12 am If you have a WSJ subscription, check out Charlie Munger: ‘The Phone Is Not Ringing Off the Hook’ - WSJ.

To address the OPs question, I'll leave it to Charlie Munger to explain.
Jason Zweig wrote:Overall, Mr. Munger made it clear that he regards this as a time for caution rather than action.

<snip>

Surely hordes of corporate executives must be calling Berkshire begging for capital?

“No, they aren’t,” said Mr. Munger. “The typical reaction is that people are frozen. Take the airlines. They don’t know what the hell’s doing. They’re all negotiating with the government, but they’re not calling Warren. They’re frozen. They’ve never seen anything like it. Their playbook does not have this as a possibility.”
Thank you for this update. We live in interesting times.
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Re: Where's Warren Buffett During This Crisis?

Post by Peculiar_Investor »

theorist wrote: Fri Apr 17, 2020 11:15 am This does raise the question — if the market is too overvalued in normal times now,
I have no clue and I don't believe anyone else does either. That's why I have an investment policy statement (IPS) which specifically has no mention of market conditions, so I just follow the my plan.

In the WSJ article,
Jason Zweig wrote:Mr. Munger told me: “I don’t have the faintest idea whether the stock market is going to go lower than the old lows or whether it’s not.” The coronavirus shutdown is “something we have to live through,” letting the chips fall where they may, he said. “What else can you do?”
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Re: Where's Warren Buffett During This Crisis?

Post by theorist »

Peculiar_Investor wrote: Fri Apr 17, 2020 11:20 am
theorist wrote: Fri Apr 17, 2020 11:15 am This does raise the question — if the market is too overvalued in normal times now,
I have no clue and I don't believe anyone else does either. That's why I have an investment policy statement (IPS) which specifically has no mention of market conditions, so I just follow the my plan.

In the WSJ article,
Jason Zweig wrote:Mr. Munger told me: “I don’t have the faintest idea whether the stock market is going to go lower than the old lows or whether it’s not.” The coronavirus shutdown is “something we have to live through,” letting the chips fall where they may, he said. “What else can you do?”
You’ll get no disagreement from me; I too invest without regard to valuations and have a plan. I am speculating on the behavior of Berkshire, which I thought was the purpose of this thread 🙂. They’ll spend some big chunk of the 130 billion eventually, I hope...
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Re: Where's Warren Buffett During This Crisis?

Post by Grt2bOutdoors »

theorist wrote: Fri Apr 17, 2020 11:30 am
Peculiar_Investor wrote: Fri Apr 17, 2020 11:20 am
theorist wrote: Fri Apr 17, 2020 11:15 am This does raise the question — if the market is too overvalued in normal times now,
I have no clue and I don't believe anyone else does either. That's why I have an investment policy statement (IPS) which specifically has no mention of market conditions, so I just follow the my plan.

In the WSJ article,
Jason Zweig wrote:Mr. Munger told me: “I don’t have the faintest idea whether the stock market is going to go lower than the old lows or whether it’s not.” The coronavirus shutdown is “something we have to live through,” letting the chips fall where they may, he said. “What else can you do?”
You’ll get no disagreement from me; I too invest without regard to valuations and have a plan. I am speculating on the behavior of Berkshire, which I thought was the purpose of this thread 🙂. They’ll spend some big chunk of the 130 billion eventually, I hope...
I recall once and I'm not sure if its attributable to Warren but I believe it is. Essentially, he said, you ought to be happy to invest, knowing that if you become Rip Van Winkle and sleep for the next hundred years, that when you wake up, you will be amazed at what your investments have done. I don't see why this should be any different for those who hold a diversified investment portfolio or even a concentrated one of good companies with strong positions and experienced management who will do the right thing for shareholders. Mr. Munger is correct, there is not we can do except to wait this out. The outcomes are simple - we adapt and survive or we cave and fall. Which would you prefer and why must one necessarily invest at any one time except to meet their intended goals? Warren Buffett has already made excellent investments and in this market environment, one should not be so anxious to burn the most valuable of all things today: CASH!! Cash is the ultimate tool in liquidity, those who lack it will find themselves in a real pickle. This is not a game of returns, its a game of surviving. You have to live to see another day. Play offense, but don't forget it will be the defense that saves your bacon!
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Re: Where's Warren Buffett During This Crisis?

Post by valleyrock »

This article appears legit, and has a tweet from Charlie Munger about doing nothing right now, sitting on your "a**" he says, and this quote from Munger, attributed to the Wall Street Journal, is in a couple of places:
“I would say basically we’re like the captain of a ship when the worst typhoon that’s ever happened comes. We just want to get through the typhoon, and we’d rather come out of it with a whole lot of liquidity. We’re not playing ‘oh goody, goody, everything’s going to hell, let’s plunge 100% of the reserves [into buying businesses]” (see https://www.marketwatch.com/story/buffe ... 2020-04-17 ).
Keeping their powder dry at Berkshire Hathaway, it seems. Sounds prudent.
justsomeguy2018
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Re: Where's Warren Buffett During This Crisis?

Post by justsomeguy2018 »

Peculiar_Investor wrote: Fri Apr 17, 2020 11:20 am
theorist wrote: Fri Apr 17, 2020 11:15 am This does raise the question — if the market is too overvalued in normal times now,
I have no clue and I don't believe anyone else does either. That's why I have an investment policy statement (IPS) which specifically has no mention of market conditions, so I just follow the my plan.

In the WSJ article,
Jason Zweig wrote:Mr. Munger told me: “I don’t have the faintest idea whether the stock market is going to go lower than the old lows or whether it’s not.” The coronavirus shutdown is “something we have to live through,” letting the chips fall where they may, he said. “What else can you do?”
What is your plan?
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JoMoney
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Re: Where's Warren Buffett During This Crisis?

Post by JoMoney »

Tik Tok ... This Saturday we'll get to hear from him.
https://finance.yahoo.com/m/9f391388-96 ... -tell.html
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
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Re: Where's Warren Buffett During This Crisis?

Post by Toons »

Playing Bridge
:mrgreen:
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
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Re: Where's Warren Buffett During This Crisis?

Post by abuss368 »

Practicing for the throwing newspaper competition!
John C. Bogle: “Simplicity is the master key to financial success."
rich126
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Re: Where's Warren Buffett During This Crisis?

Post by rich126 »

theorist wrote: Fri Apr 17, 2020 11:15 am
Peculiar_Investor wrote: Fri Apr 17, 2020 11:12 am If you have a WSJ subscription, check out Charlie Munger: ‘The Phone Is Not Ringing Off the Hook’ - WSJ.

To address the OPs question, I'll leave it to Charlie Munger to explain.
Jason Zweig wrote:Overall, Mr. Munger made it clear that he regards this as a time for caution rather than action.

<snip>

Surely hordes of corporate executives must be calling Berkshire begging for capital?

“No, they aren’t,” said Mr. Munger. “The typical reaction is that people are frozen. Take the airlines. They don’t know what the hell’s doing. They’re all negotiating with the government, but they’re not calling Warren. They’re frozen. They’ve never seen anything like it. Their playbook does not have this as a possibility.”

This does raise the question — if the market is too overvalued in normal times now, and if in the downturn everything is frozen and they’re being defensive — when will they put their cash horde to good use? Hopefully it doesn’t sit there into the next market cycle! (I say this as a big Berkshire fan and very minor shareholder.)
I'm curious as well. I wasn't a fan of him buying the airline stocks or Apple (I thought Microsoft would have been better and it would have but obviously Apple had done well also). It appears that he sold most of the airline stocks, if so, that seems like buying high, selling low.

Personally I think he hasn't done much with the cash because this was a strange event and he was unsure of what to do. Sounds stupid but that is my best guess. Companies didn't need his cash since the government was giving it out, often at favorable terms for the companies.

I've greatly reduced my share of BRK over the last year and while a fan, it isn't worth a significant amount of my portfolio IMO. They obviously aren't going bankrupt or anything but will they do better than tech stocks or the index over all, hard to say.

As most money managers will readily admit (at least behind closed doors), it is much easier to invest with smaller sums of money than large sums and BRK has too much. Most small companies wouldn't move the needle unless you bought tons of them.
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Re: Where's Warren Buffett During This Crisis?

Post by theorist »

One interesting piece of recent Berkshire-Hathaway related news — at this year’s annual meeting (which will be broadcast only for most of us, since they cannot hold a massive event...), Charlie Munger will not be joining Buffett to take questions. Instead, Greg Abel will.

Read whatever tea leaves you wish from that...
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Leesbro63
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Re: Where's Warren Buffett During This Crisis?

Post by Leesbro63 »

Another interesting piece on this topic:

“Opinion: Dud stock picks, bad industry bets, vast underperformance — it’s the end of the Warren Buffett era
Published: May. 15, 2020, 8:00 a.m. EDT
The chairman of Berkshire Hathaway seems to prefer the S&P 500 to his own company’s stock“

https://apple.news/AG2w8e_g0S7-EKpIGcNYytg
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