Too Much of a Good Thing 🤑

Too Much of a Good Thing

A bet on Berkshire is a bet on Buffett, the world’s greatest stock picker. You can’t fault the logic, but there’s only one problem: He seems to have gone off it!

What would you do with $128 billion in cash? You’d probably invest some of it, right? Well, not if you’re the best investor ever, apparently! On Saturday, Warren Buffett’s holding company, Berkshire Hathaway, disappointed investors by going another quarter without any major investments being made. He’s hoarding cash, and the reason why is fundamental.

Warren Buffett is a devout follower of the value investing doctrine, as well as an influential missionary for it. He wants to know what a business is worth so that he can buy it for less, and a business is worth the money it can make him as an investor! You’ll never catch him paying more than fair value for a stock, and that’s why as he stands back from markets, financial pundits are afraid he knows something we don’t!

That it’s all going to be okay, hopefully. It’s worth noting that $128 billion is quite a large sum of money, and it doesn’t fit easily into most market instruments. Warren Buffett has promised to move the needle eventually with another “elephant” acquisition, but he’ll have to be patient. For now, the best investment might be in himself! 

Berkshire Hathaway bought $1.7 billion of its own stock this quarter, which is a self-endorsement of its big stakes in Apple, Bank of America, Coca-Cola, and American Express. We can only assume that the unmoving stock price of Berkshire is making it a great value play for the Oracle. Time will tell!

Share:

More Posts

Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community.The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results.Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such.Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.